Not surprisingly, the seven papers summarized in Part IV contain potential conflicts. Expanding PV markets is, after all, a complex and challenging task. For this reason, we have extracted from the final reports what we consider the most important and complementary points, and assembled them into a cohesive package of recommendations. The package reflects our close consultation with the Advisory Committee assembled for this project, as well as our extensive professional review process. We stress that the package represents our best judgment of which elements recommended by our authors can function together as a coherent whole; we do not, however, include all the suggestions contained in the papers.

We intend here merely to sketch the dimensions of an effective PV strategy. Implementation will require further refinement. For more explanation of each point and an initial discussion of how each might be implemented, consult the executive summaries that follow and the papers themselves. Note that these recommendations appear here in random order; the sequence does not indicate their relative importance. Note also that although for each recommendation we identify the most directly relevant paper in the series, some recommendations actually reflect the combined insights of several papers. The recommendations fall into two rough categories: expanding consumer choice and setting market rules.

A. Expanding Consumer Choice

1. A federal and state buy-down program: States should coordinate a set of “buy-down” efforts, perhaps modeled after the California “Emerging Technology” program. This initiative will offer progressively smaller rebates to purchasers of small PV systems. A federal system benefit charge on electricity purchases should match the funds provided by the states. (See Government Buy-Downs for the Residential Market by Thomas J. Starrs and Vincent Schwent.)

2. Analysis of product markets: The PV trade association should coordinate an industry-funded analysis of near-term product markets (such as those for PV-driven pumps and portable generators), aimed at developing existing technology to serve existing markets, and building the strategic partnerships necessary to sell into those markets (for instance, with irrigation associations). Where possible, these studies should consider the domestic market for these products as a springboard for the much larger international market. Similar product analyses of developing-country markets will also be necessary. (See Industry Development Strategy for the Photovoltaics Industry by Eric Ingersoll, Daniel C. Gallagher, and Romana A. Vysatova.)

3. Aggressive, coordinated government procurement: A variety of actors must come together to provide leadership and detailed support for minimum federal and state government purchases of PV and green power; these purchases should require suppliers to decrease price, increase quality, and provide long-term service contracts. This initiative will require at least an Executive Order from the President and complementary legislation; a resolution of existing regulatory and legislative conflicts; and changes in the way governments finance their purchases. (See Government Procurement to Expand PV Markets by Joel B. Stronberg and Virinder Singh.)

4. A multi-year PV public communication plan: Lead environmental foundations should convene PV advocates and private-sector players to establish a multi-year communication plan linking public-interest campaigns and product marketing. (See Public Education and Professional Training by Larry Shirley, Shawn Fitzpatrick, and Chris Larsen.)

5. Elimination of barriers to capital formation: Foundations, policymakers, and the financial community must open pathways for capital specifically targeted to different PV products. Foundations should consider whether they can jump start a self-sustaining source of private capital for the PV manufacturing industry. Policymakers must make existing public lending, grant, and bonding authority friendlier to PVs. The financial community needs to work with the PV industry to make consumer-friendly financial products available. These sectors should work together to research, set priorities within, and implement a list of needs. The list may include extending the permissible term of public capital to 15–25 years and commissioning feasibility studies on using project finance to support PV manufacturing additions. (See Financing PV Production Capacity Through Risk Management by Eric Ingersoll, Robert DiMatteo, and Romana Vysatova.)

B. Setting Market Rules

6. Legislative packages supporting distributed energy: Environmental advocates with funding from foundation and industry sources must develop and lobby in support of “solar statutes” at the state and federal level. These statutes should facilitate the deployment of distributed PV systems. Key elements include net metering; a requirement that the utility industry adopt a fair, safe, uniform interconnection protocol devised by a third party, or else submit to a federal protocol; a requirement that utilities offer standardized, no-hassle power-purchase contracts appropriate for very small systems; prohibitions against unwarranted fees levied by utilities on distributed energy generation; the prohibition of restrictive homeowners’ covenants; and a requirement that localities adopt solar zoning standards. (See Policies to Support a Distributed Energy System by Thomas J. Starrs and Howard J. Wenger.)

7. Strategic discussion: Moderated by an appropriate objective entity, the PV community must seek consensus on at least two issues: whether and how PV interests should collaborate with other distributed energy technologies on a common legislative and regulatory agenda, and what role, if any, regulated electric utilities can play in the further deployment of PVs. (See Policies to Support a Distributed Energy System by Starrs and Wenger, and Government Buy-Downs for the Residential Market by Starrs and Schwent.)

8. Formation of a solar “rapid response” team: With federal and foundation support, an appropriate non-profit entity should organize a team of legislative and regulatory experts able to assist states in coordinating their solar efforts. The team must especially participate in state and regional forums organized to set distribution and transmission rules. It might also coordinate communication between policymakers, environmental advocates and the solar industry, to ensure that policies send the desired market signals to manufacturing and distribution firms. (See Policies to Support a Distributed Energy System by Starrs and Schwent.)

9. An integrated professional training program: Federal and state agencies, convened by the U.S. Department of Energy and working in coordination with labor unions, professional societies, rural extension offices, and other entities, must institute a program to ensure that all the professionals that come into contact with a PV product during its lifetime receive adequate training. These professions include architects, builders, and developers; building inspectors and realtors; loan officers and real estate appraisers; utility engineers; and PV retailers, system installers, and service personnel. In particular, the PV industry and state governments should insist on training and certification for system installers. (See Public Education and Professional Training by Shirley, Fitzpatrick, and Larsen.)

10. Integration of PVs into the overall development strategies of developing countries: Our limited analysis of developing-country markets indicates the value for those nations of the same “product path” that we prescribe for the United States, with significant differences due to the comparatively greater role that PVs can play there in improving the quality of life. Aid agencies and other donors must refine ways to build PV product markets, often with the assistance of local non-governmental organizations, while de-emphasizing demonstration programs and subsidized purchases. Human capacity-building activities include vocational training for technicians, business training for entrepreneurs, and education of potential customers. Financial mechanisms include loan guarantees, funding local development banks, funding private equity and venture capital funds, and assisting microcredit organizations. Most important, the U.S. government and donor agencies must work with developing- country governments to integrate PVs (and perhaps other clean, distributed resources) into their overall development strategy, rather than segregating it as a boutique environmental technology or merely a niche luxury product. (See Accelerating PV Markets in Developing Countries by Michael Philips and Brooks Browne.)

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