Policy implications of implementing residential PV solar energy systems in developing regions

Abstract

Access to sustainable and reliable energy sources is a pivotal driver of economic development and improved living standards in all regions of the world. This research paper explores the policy implications of implementing residential photovoltaic (PV) solar systems in two developing regions, Jamaica, and Ghana, and emphasizes the role of policy frameworks in shaping the sustainable energy landscape. The study employs a multifaceted approach, combining System Advisor Model (SAM) analysis – which reveals promising energy production potential in both regions, with substantial economic benefits – and a risk assessment to evaluate the feasibility, economic viability, and potential barriers to residential PV solar adoption. Financial assessments indicate competitive payback periods and favorable returns on investment, suggesting that residential PV systems can offer cost-effective energy solutions. Identifying potential barriers to adoption through a comprehensive risk assessment highlights challenges related to policy instability, financing constraints, and technical limitations. Policy recommendations and strategies for mitigating these barriers are proposed to accelerate the transition to renewable energy sources in both regions. The findings underscore the potential for solar energy to address energy access challenges while advancing economic development, environmental sustainability, and energy resilience in Jamaica, and Ghana, while offering valuable lessons for similar contexts worldwide.