Financing Solar Photovoltaic Transition: From Utility to Residential Market Adoption in Emerging Economies

This paper examines the advantages and disadvantages of different financial schemes for introducing PV facilities in terms of the suitability of funding vehicles and investment mechanisms. Given the policy expense curtailment, owing to the gradual PV competitiveness, the analysis particularly focuses on the emerging market for PV installations for self-consumption. As the main obstacle is the high upfront cost of PV systems, it examines the new financial models in which customers buy the service rather than PV system per se. It considers what conditions would be necessary to facilitate the third-party ownership models and alternative financing schemes. Finally, this paper discusses what policy measures and instruments can be deployed to foster further PV adoption in the context of emerging economies. This study also provides implications for corporate strategy and financial institutions.