Analysis of financial support for photovoltaic system installation with the economic simulation model

The authors have developed a penetration method of dispersed generation technologies and tried to investigate the economic simulation of photovoltaic power systems. The model is composed of several analysis modules: a technology application module; a regional meteorology module; cost modules such as capital cost, power generation cost, marginal cost and avoided cost; and a logistic penetration module. The database management system of application forms, meteorological data, energy demand and equipment costs is also developed to support the model. The main purpose of the study is to make clear impacts to the power supply configuration and cost/benefit effects when PV power systems are installed into several different sectors in Japan. The ultimate potential of PV power systems is 235,103 MW/sub p/ and its market potential is 15,172 MW/sub p/ in Japan. Market penetration highly depends on cost learning factors of several components of PV power systems. In conclusion, conditions are now favourable for government or utilities to provide the highly financial support required if they wish to promote the installation of PV power systems as an electricity supply system.