There is a growing need for clean affordable electric power generation in both the U.S. and internationally and solar thermophotovoltaic (STPV) can meet the needs of this market. This paper investigates the utility grid market applicable to a solar thermophotovoltaic power generating system. It finds that a large international electrical market and a smaller U.S. electrical market exist today but the U.S. market will grow by the year 2005 to a level that would easily support the high production level required for solar systems to be cost effective. Factors which could influence this market and the system characteristics considered by utilities in selecting future power systems such as levelized energy cost, dispatchability, environmental, etc., for both the grid and remote market are discussed. The main competition for this market and the operating performance of this competition are described. A conceptual design of a STPV power system is presented, the operation is described, and how the performance meets the utility requirements is discussed. The relationship between the cost of the TPV conversion unit and the system efficiency of the STPV system is given for both the grid and remote markets that it must meet in order to be competitive. ©1996 American Institute of Physics.