The macro view of solar policy: The case for supporting utility-scale power

• Solar costs have come down drastically over the last decade. • Yet, solar power still provides less than 5% of electricity generation globally. • Policy is fragmented among promoting utility-scale, commercial and residential solar. • Utility-scale is the only way to provide significant solar power and is the most efficient. • Utility-scale power requires increases in transmission capacity and integration of electricity markets. New solar energy generation is drastically needed as a source of clean electricity as the U.S. and the globe make the transition away from fossil fuels. Yet, even as solar costs have dramatically declined, solar sources still provide less than 5% of global electricity. We examine issues in solar policy leading to this low adoption rate. Examining the variables of cost, baseload power and intermittency, and land use, we evaluate the tradeoffs among policy support for utility-scale, commercial and residential solar systems. We argue that utility-scale solar power makes far more sense if there is adequate grid integration, so that such installations can be placed in locations that minimize land use tradeoffs. By focusing policy support on a few large solar installations, governments can vastly increase the solar contribution to electricity generation.