The report, published in *Solar Compass*, evaluates the current state of solar energy in Canada, contrasting the benefits of expansive utility-scale solar farms with smaller, decentralized systems like rooftop panels for homes and businesses.
"Solar has major advantages over wind, geothermal, and nuclear power as a renewable energy source," said Anil Hira, director of CERG and a political science professor at SFU. "The cost of installing solar panels has dropped by approximately 90 percent in the last decade. Globally, solar power generates about four percent of electricity, but in Canada, it contributes only 0.5 percent. Focusing on utility-scale solar projects could significantly diversify Canada's energy mix, reducing overreliance on hydropower and mitigating intermittency issues with wind."
The study attributes Canada's lagging solar adoption to policies that prioritize smaller, decentralized projects. These smaller systems are politically appealing as they incentivize individual and corporate investments and utilize existing infrastructure like rooftops. However, Hira and his co-authors argue that this approach falls short in addressing the broader goals of a green energy transition.
Decentralized solar systems, the report notes, tend to fragment electricity systems, create equity concerns, and fail to produce sufficient energy. Wealthier homeowners and larger companies are better positioned to invest in such systems, while many regions lack the ideal conditions for solar power generation. In contrast, utility-scale solar farms are, on average, 64 percent less expensive than residential systems and 50 percent cheaper than commercial setups.
Although large-scale solar projects face challenges, including high initial costs, public opposition, and land-use concerns, the report found many of these obstacles to be overstated. "The land required for large-scale solar to make a significant impact is far less than people assume," the authors noted, adding that innovative solutions could allow for dual-purpose land use where solar panels are installed. The report suggests utilizing public lands for such projects to minimize community opposition.
Examples from the United States illustrate the potential of large-scale solar farms. California's Solar Star project, with 1.7 million panels spanning 13 kilometers, generates 579 megawatts of power - enough for 255,000 homes. Arizona's Mesquite Solar 1 Power Plant, built in 2013, produces 150 megawatts at a cost of $600 million, supported by a $337 million U.S. Department of Energy loan.
The study calls for proactive government policies and financial support to overcome development barriers for utility-scale solar projects. "While all scales of solar deployment have a role, national policies should prioritize the rapid rollout of utility-scale projects in areas with optimal sunlight," said CERG co-author Prasanna Krishnan. "Comprehensive interconnection reform and support for large-scale solar farms would transform Canada's electricity systems."
Research Report:The macro view of solar policy: The case for supporting utility-scale power
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