The UPP-Sol project is aimed at demonstrating a novel solar collector system concept for distributed solar polygeneration in urban areas and at the end-user site. The technology includes a combination of concentration, high-efficiency PV cells, and simultaneous generation of electricity and several thermal energy products. For example, taking advantage the recent independent progress in thermal absorption cooling could lead to a competitive breakthrough for solar polygeneration. It is expected that this approach will lead to a considerable improvement in the competitiveness of solar energy. The potential impact of this improvement is expected in several areas.

• Primarily, introducing solar energy into the energy mix of Europe will have a positive ecological impact by reducing the need for combustion of fossil fuels and therefore reducing emissions of CO2 and other pollutants, according to the requirements of the Kyoto protocol. This would reduce the greenhouse effect and reduce local environmental damage such as pollution-related illness. The impact of generation at the end-user site includes an additional benefit, of reducing fuel transportation and electricity transmission losses. Therefore, a kWh generated at the end-user site could save possibly about 1.2 kWh of conventional fuel combustion. These savings apply for electricity and fuel consumption in buildings within the residential, commercial and industrial sectors, and therefore can amount to a significant fraction of the overall energy consumption.
  
  
• UPP-Sol systems can help reduce the summer electricity consumption peak, which has become the dominant peak in many countries due to proliferation of air conditioning. UPP-Sol polygeneration provides air conditioning without consumption of electricity during the periods of highest solar load, and for several hours after sunset by using thermal storage. This can flatten the peak air-conditioning demand, reduce the need to operate inefficient and expensive peaking power plants, improve the reliability of the electrical grid, and postpone the need for grid expansion and for new power plants.
  
  
• A significant economic impact of the solar polygeneration technology arises from the potential demand for new components and services, much of which has to be provided locally. Southern Europe countries like Italy, Spain, Portugal and Greece can implement the UPP-Sol technologies, requiring a large new infrastructure of installers and service providers, as well as local manufacturing of some components. Other European countries may participate in manufacturing of other components, for example Germany where the infrastructure for advanced PV cell production is already in place. A vast potential also exists for technology export to other sunny regions in the world such as North Africa, Middle East, south Asia, Australia, etc.
  
  
• Energy supply security in Europe will improve by reducing the dependence on imported fossil fuels and relying more on locally generated energy.