Due to Taiwan's limited energy resources, the development of solar photovoltaic (PV) in Taiwan has become one of the most important solutions for meeting future energy supply needs and ensuring environmental protection. A huge amount of researches about renewable energy sources has emerged recently in response to these issues. However, the amount of researches considering the effects of various influential parameters on the efficiency and performance of PV systems remains small, and is still limited to some specific parts of PV systems. In particular, researches considering thoughtfully the influence of government subsidies on PV financial assessment are still in development. This paper proposes an approach to analyze the benefit of installing a PV system under the impact of government financial subsidies, focusing especially on feed-in-tariff (FIT) and tax abatement policies for industrial users in Taiwan. In addition, a method for selecting the most appropriate policies is proposed for the government through the analysis of both user demand and the government's PV installation capacity target. (C) 2015 Elsevier Ltd. All rights reserved.