Abstract for: Designing Photovoltaic Feed in Tariff Policy Based on Market Dynamics: The Japanese Market as an Example

Feed in tariff policy has been found to be successful in diffusing photovoltaic energy around the world. However, this success might come on the cost of photovoltaic industry. While the share of renewable energy might increase to reach national targets, market shakeout and series of company bankruptcies take place resulting in a boom bust cycles. Such market instability happens due to the frequency and magnitude of policy makers’ interventions to the feed in tariff policy. Through the understanding of dynamics of photovoltaic industry, this paper discusses the development of resilient and responsive feed in tariff policy using system dynamics.