Title of Dissertation: national renewable energy policy

Drivers of the growth of the U.S. solar market 
Most of the corporations interviewed described that the U.S. solar market has 
grown very fast in the recent decade. The corporations perceived that the drivers of the 
growth were government policies, lowered cost, technological innovation, and increased 
public awareness of solar power. 
Government policies were pointed out as one of the most important driver of the 
development of the solar market. One project developer stated: “When the government 
got involved and started creating subsidies to encourage people to use alternatives, that’s 
when the boom in the market really started to grow”.
131
The policies not only opened up a 
market, but also they have influenced the market constantly. The solar corporations 
interviewed agreed that various policies have been affected the solar market and they are 
still very influential for the market conditions. The policies mentioned included the ITC, 
net-metering, the Clean Power Plan, the tariff on Chinese solar panels, Renewable 
131
Interview #7 

---

130 
Portfolio Standard in several states, state-level credits, state-level domestic procurement 
requirement, and even building codes. 
Many corporations stated that the U.S. solar market has benefitted by sharply 
decreased cost of solar systems. A module manufacturer stated: “In a short amount of 
time, the module price came down so fast. That’s why the market has grown so fast”.
132
One of the other module manufacturers pointed out that cost was a “fundamental” driver. 
The representative of the manufacturer stated: “I think mostly people go solar for 
economic reason”.
133
The cost of solar has significantly decreased in recent years. A 
project developer company said that solar beats gas in terms of costs in one of its 
projects.
134
Over time, the cost of solar has become more competitive compared to 
conventional energy sources. 
Technological innovations have also contributed to the development of the solar 
market. Two corporations pointed out that the invention of financing vehicles was very 
important for the development of solar energy. One module manufacturer said that 
financing was the “biggest innovation for last years,” which has led the growth of the 
residential solar market.
135
Accumulated technical experience has also positively affected 
the solar market. An installer pointed out: “Technology has advanced to the point where 
efficiencies are so high that we can build very big projects”.
136
He added: “Back in 2009, 
132
Interview #9 
133
Interview #8 
134
Interview #6 
135
Interview #9 
136
Interview #21 

---

131 
you wouldn’t hear about building 20MW project, which is now one of small [plants] 
what we built”.
137
Increased public awareness of solar energy has been one of the drivers of the solar 
market development. A maintenance service provider stated: “So many more people 
know and understand the benefits of clean energy. They are willing to pay extra premium 
for that”.
138
People feel solar technology is “real” now. A module manufacturer pointed 
out: “[Solar] is not theorem of science fiction. People think it as real. They see it on 
neighbor’s home. They see it on kids’ school”.
139
The maintenance service provider 
added that commercials of solar technologies on TV and radio stations have led the 
enhanced awareness.
140
The commercials of solar products and services have led people 
to think that solar is more commonplace and more preferred. 
These four drivers of solar market development are connected one another. 
Government policies have contributed to lowering the cost, to encouraging technology 
innovations, and to increasing public awareness of solar technologies. Decreasing cost of 
solar, technology innovations, and the interests of the public in solar energy have led the 
government to be more interested in promoting solar energy. People want to go green 
because they have seen the technology innovations and the rise of many solar 
corporations. The U.S. solar market has grown based on the positive feedbacks between 
these drivers.
The ocean of policies 
137
Interview #21 
138
Interview #21 
139
Interview #8 
140
Interview #24 

---

132 
The ITC, a 30% tax credit for the investments in solar system, is one of the most 
important solar policies in the United States. All the corporations interviewed mentioned 
the ITC. They said that the ITC has led the U.S. solar market to grow and flourish.
Although most of the corporations stated the importance of the ITC in the U.S. 
solar market, no one has strongly argued for the necessity of the extension of the ITC.
141
Most of the companies said that the solar market will survive without the ITC. A module 
manufacturer said: “Even if [the] ITC were cut down to 10%, we believe we still see 
solar grow, but it could actually slow down the growth or development of solar”.
142
Some 
corporations said that the effects of the ITC on their business were not very significant. A 
module manufacturer said that the ITC would not affect it directly because they don’t 
develop or sell projects, and one service provider did not see significant effect of the 
expiration of the ITC since they did not participate in the construction side.
Even the corporations in downstream did not strongly argue for the extension of 
the ITC. An installer said what they want was to know what is going to happen rather 
than the extension itself: “We are great to have certainty. Nothing changed, but being 
able to prepare for what might change”
143
A project developer said that the extension of 
the ITC was important, but it stated that other policies including net-metering, the Clean 
Power Plan, and the design of electricity rates were also very important.
144
141
Twelve out of nineteen firm interviews were conducted before the decision of the 
extension of the ITC in 2016.
142
Interview #11. Even if the 30 percent ITC expired, 10 percent ITC for commercial 
projects would have been remained since the 10 percent is based on a different act from 
the act including the 30 percent ITC.
143
Interview #21 
144
Interview #6

---

133 
This infers that a single policy, even the most critical federal policy, does not 
transform the solar market at this point. Diverse policies across energy, trade, and climate 
policy influence the solar market in different ways. The solar corporations want solar 
friendly market institutions rather than a specific policy support. A module manufacturer 
said: “I think there will come at point where we won’t really need subsidies, but we still 
need policy that’s friendly to solar. It doesn’t have to be tax subsidy, but you need to 
have an environment [that] encourages solar”.
145
A module manufacturer used the term, 
“the ocean,” when described the policy factors. The representative of the company stated: 
“Policy factors include a lot of different levels of policies including trade policy, 
permitting policy and energy policy. It’s like what makes the ocean.”
146
Table 17 shows all the policies that were mentioned by the interviewed 
companies. Various policies including a trade policy and a climate policy have been 
pointed out as important policies for solar industry. The solar PV corporations perceive 
that various federal- and state-level policies influence the solar market in different ways. 
Multinational corporations tend to perceive more policies as important compared to 
domestic companies. Since most of domestic corporations are smaller than multinational 
corporations, they were lack of resources and capabilities to monitor all the relevant 
policies.
145
Interview #10 
146
Observation #11. The representative of a solar manufacturer did not agree with an 
interview, but agreed with an informal talk. The quote is from the memo written during 
the informal talk.

---

134