Review of legal and institutional issues in the use of decentralized solar energy systems

The legal and institutional issues involved in the use of decentralized solar energy systems are examined for the purpose of advising government planners and policymakers, the solar industry, solar researchers, and prospective solar users of present and potential impediments and incentives to solar commercialization. This information was gathered primarily through a comprehensive literature review, with supplementary data provided through interviews with representatives of organizations active in the solar field. Five major issue areas were identified in the course of this study: (1) prohibitions on the use of solar equipment, (2) regulation of the production and placement of solar systems, (3) access to sunlight, (4) financial incentives and impediments to the use of solar technologies, and (5) the public utility-solar user interface. Each can be important in its impacts on the incidence of solar usage. The major actors involved with the issues identified above represent both the private and public sectors. Important private sector participants include solar manufacturers and installers, labor unions, lending institutions, utility companies, solar users themselves, and other community property owners. In the public sector, local, state, and federal governments are all capable of acting in ways that can influence the solar commercialization effort. Implementation options are available for all levels of government seeking to take an active role in addressing the previously mentioned legal and institutional issues. The appropriate actions will vary from federal to state to local governments, but each level can be important in removing existing barriers and creating new incentives for solar use