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Limited fossil resources, the continuous increment in fuel prices and severe environmental problems require new sustainable electricity generation options, which utilize renewable energies. Solar photovoltaic generation is a proven renewable energy technology and has the potential to become cost-effective in the future, for it produces electricity from the solar radiation. In Ghana, the electricity demand is rapidly increasing at a rate of 10% annually. In the attempt to change the conventional energy intensive economical development and its negative impact on the environment, the government has begun to support the development of the solar photovoltaic technology strongly. In this paper, the state of solar photovoltaic, the challenges facing the industry, the potential of the technology, the policies and strategies to promote development of the technology have been presented. [ABSTRACT FROM AUTHOR]