The effect of current and prospective policies on photovoltaic system economics: An application to the US Midwest

Defer option valuation and optimal investment timing of solar photovoltaic projects under different electricity market systems and support schemes

“…Policy evaluation is another important application area for real options analysis in solar PV projects [32][33][34][35][36]. Different policies have been discussed by different scholars, including a time-of-day price mechanism [33], ‫ܶܫܨ‬ [32,35,36], and public research [34]. Lin and Wesseh [36] and Zhang et al [32] applied binomial tree models to evaluate the current ‫ܶܫܨ‬ in China and concluded that the current ‫ܶܫܨ‬ can stimulate PV investment.…”

“…The results of the dynamic programming and contingent claims are the same in a risk-neutral world [12,35,38]. To simplify the deductions, we use a stochastic process in a risk-neutral world later in the analysis.…”

The Impact of Fiscal Policy on the Sustainable Development of China’s Photovoltaic Industry

“…Darghouth et al (2016) argued that at the overall national level in the United States, the two policy pricing strategies, net measurement and market feedback loops, almost counteract each other, resulting in a modest net effect. Sesmero et al (2016) argued that the introduction of time-of-day pricing (TOD) into grid electricity taxation can potentially change the economics of photovoltaic systems.…”

Greening the power generation sector: Understanding the role of uncertainty

“…Analogous results seem to hold for solar PV systems. An application to the US Midwest [56] indicates that current policies are unlikely to trigger adoption by a risk-neutral residential consumer unless the federal tax credit is significantly increased. 11 On the other hand, the work by Torani et al [38] demonstrates that a shift towards solar PV in the residential and commercial sector can occur independently of RES and carbon mitigation policies, which, according to the authors, have a modest role compared to technological change.…”