ABSTRACT
Solar energy has experienced an impressive technological shift. While early solar technologies consisted of small-scale photovoltaic (PV) cells, recent technologies are represented by solar concentrated power (CSP) and also by large-scale PV systems that feed into electricity grids. The costs of solar energy technologies have dropped substantially over the last 30 years. For example, the cost of high power band solar modules has decreased from about $27,000/kW in 1982 to about $4,000/kW in 2006; the installed cost of a PV system declined from $16,000/kW in 1992 to around $6,000/kW in 2008 (IEA-PVPS, 2007; Solarbuzz, 2006, Lazard 2009). The rapid expansion of the solar energy market can be attributed to a number of supportive policy instruments, the increased volatility of
fossil fuel prices and the environmental externalities of fossil fuels, particularly greenhouse gas (GHG) emissions.
