Solar policy and the innovation cycle

Australian Government policy advice suggests that solar energy is not competitive now and is unlikely to become so in any substantial way. Other advice on R&D (Mortimer Report) is suggesting that commercial interests should immediately take over from government as ‘on-going market failure’ cannot be sustained as a basis for funding. Both approaches appear to lack an appreciation of the innovation cycle and its application to the renewable energy industry in Australia. This paper outlines how ACRE is planning to help create a market-based renewable energy industry in Australia by addressing all aspects of the innovation cycle: R&D, Demonstration, Scaling up and Market-Application phases. It suggests that the feedback from government signals related to the regulatory and cultural aspects of the renewable industry would be the most significant step in the innovation cycle