| Abstract: | In the last decade of the 20th century a wide variety of promotion strategies increased the market penetration of small grid‐connected PV systems world‐wide. The objective of this paper is to assess the impact of these promotion strategies on the market for and on the economic performance of small grid‐connected PV systems. The most important conclusions of this analysis are: Pure cost‐effectiveness is not crucial for private customers. Affordability is rather what counts. Non‐monetary issues play an important role for a substantial increase in market deployment. Comprehensive accompanied information and education activities are also important along with financial incentives. There are still considerable barriers in the market: on the one hand transparent and competitive markets exist in only a few countries; on the other hand non‐monetary transaction costs still represent a major barrier. Progress with respect to cost reduction has been achieved, but mainly for non‐module components. Copyright © 2004 John Wiley & Sons, Ltd. |
