Most electric utility planners consider photovoltaics to be a frontier technology which is not yet mature enough to contribute to the U.S. electric generation market. Over the past decade, utilities and their regulators have begun to emphasize demand‐side management (DMS) to meet an increasing proportion of their service needs. For PV to be a valued technology in the electricity sector, DSM applications need to be identified that can provide a significant market for this technology. DSM programs of 20 of the most active utilities in the DSM market are analyzed in this research to determine the size, prices, demand, and impact of policy. Target PV‐DSM markets are identified and the policy and industry challenges that must be met are defined.