Assessment of energy policies to promote photovoltaic generation in the European Union

Highlights: • The impact of FIT and quota obligation, along with design elements, is tested on PV. • FIT provides better results, but tariff size and contract duration should be revised. • Award rate and time horizon might need revision to improve quota obligation results. • Energy dependency and GDP have a positive impact on solar PV deployment in the EU. Renewable energy is a focal point of discussion in the European Union, as clean production technologies contribute to all three aims of energy policy (security, competitiveness, and sustainability). This paper focuses on an empirical assessment of feed-in tariff and quota obligation policies, as well as their policy design elements, applied to solar photovoltaic energy in the European Union over the period 2000–2014. The results indicate that only feed-in tariff policy has significant impacts in terms of installed photovoltaic capacity. However, its main policy design elements (tariff size and contract duration) have a positive but not significant influence on the development of this clean production technology. Policy-makers should consider the importance of reducing regulatory uncertainty about these parameters.