This report discusses the economic and policy factors leading to the initial successful introduction of Luz International Limited`s Solar Electric Generating Systems (SEGS). It then addresses the wide range of barriers to continued SEGS commercialization, including state and federal tax policy, avoided cost energy pricing, artificial size limitations under the Public Utility Regulatory Policies Act (PURPA), the loss of effectiveness of PURPA itself, the lack of incentives available to utilities as owners of solar electric plants, and the limited ways in which the environmental benefits of this technology have been recognized. The way in which each of these barriers contributed to the suspension of new LUZ projects is highlighted. In addition, mitigation approaches to each of these barriers are suggested.