Many Utilities and Governments have moved to encourage solar energy because they have evaluated the "first mover" advantages to creating local markets, manufacturing and technology centers for an energy source that is set to become commercially self-sustaining within a decade. Various program structures have been utilized to achieve this.

Net metering: still not widely publicized with consumers, but some Governments have set up a mechanism that allows Consumers to export surplus solar energy (often during daytime hours) in to the Utility grid and thereby receive credits against their electricity bills, while drawing on the grid during early morning and evening periods. The result can be that the electricity meter actually goes backwards during the day or a separate meter records the excess power passed back to the grid. This approach maximizes the value of solar energy.

Green Power: In de-regulating electricity markets around the world, new Utilities and electricity retailers have leveraged their brand by either offering only renewable energy or a high proportion of renewable energy. Consumers have been willing to pay a small premium for this service and there are many examples of highly successful programs in Germany, USA and the Japan.

Systems Benefit charges: Also through the de-regulation process, Authorities have created "Systems Benefit charges" which set up a small increment on consumer bills across the whole rate base to fund the building of solar energy projects/power. The funds are often used to create a rebate on the cost of solar energy products for their consumers.

Portfolio Standards: State and Federal Governments have responded to consumer interest in solar and other renewable programs by setting targets for these energy sources as a proportion of the total primary energy portfolio during the de-regulation process. New programs have recently been created which provide further incentives for locally produced solar products.

The relative economics of Solar Energy verses other Renewable Energy sources will depend on country or regional specific factors. Solar Energy economics are at their best in Regions with high solar radiation factors. However, solar programs have been successful in Japan and Germany, both of which have less than optimal solar conditions.

Where hydro-electric and wind farms have been constructed, their economics have often been preferable to solar energy. This is also true of biomass. Obviously, not all regions have suitable conditions to access the former two technologies and most examples require distribution infrastructure to bring the energy to the users.

Sometimes, utilities in one region have the opportunity to access these renewable energy sources from another Region through green power exchange markets.

Solar Energy comes in to its own through its freedom to choose the site of energy production and its ability to directly match individual (residential or commercial) customer loads. It therefore has the flexibility to create greatest local economic impact of any energy source and also benefits from its ability to utilize "free space" on roof tops or vertical walls of buildings.

During the period that solar energy costs are still above other energy sources, but are starting to approach the point where substantial niche markets will emerge, partnership between economic motivations of Utilities, the Solar Industry and Government will capture all the elements of value necessary to show a return on solar energy programs.

Of all energy sources, Solar Energy arguably has the potential to create the most positive impact on local jobs of any energy source. Depending on the commercial arrangement between the solar companies and the Utility almost all the costs could be managed locally. At one end of the scale, the jobs impact will be equipment installers on local buildings and homes. At the other end of the scale, local production of solar cells may occur, where all manufacturing activities (with exception of the raw material itself) in this fast growing high technology industry can occur locally.

The latter opportunity is driven by the size of the local market. Most solar cell manufacturing plants require a hurdle of 20 Megawatts per annum of production to yield the majority of "best economies of scale" efficiency curve. This is a very small increment when compared with the size of the energy supply load that most Utilities typically manage.

Solar Energy carries most value as a distributed energy source. Distributed energy means energy produced at or close to the point of use. Utilities place different values on "central" verses "distributed" energy sources.

Solar Energy reduces the cost of investment in grid transmission extension, which carry both an economic cost and a time element associated with capital investment and planning approvals. Solar Energy can also be introduced in small increments to closely match the load requirements.