Feed-in tariffs and other support mechanisms for solar PV promotion

This chapter discusses support mechanisms for solar photovoltaic (PV) promotion. It argues that at a very early stage of market development, research and development (R&D) spending might create a market for demonstration projects (see Section 1.06.3). In order to stimulate further market growth, additional tax and investment incentives and support mechanisms such as net metering can create a niche market for solar PV (see Section 1.06.4). To establish large-scale gigawatt markets, the only proven support mechanism by now is feed-in tariffs (FITs; see Section 1.06.5). Best practice design of effective and efficient FITs will be presented in detail. The chapter closes with an outlook of future support frameworks for solar PV promotion.