In recent years, there has been a sharp increase in the number of studies into photovoltaic (PV) technology with a weak link between policy, innovation and market. These three concepts cannot be understood separately. Particularly, this paper shows alternatives for the implementation of the value chain in PV industry to understand the dynamics among policy, innovation and market, supported in a simulation model with the system dynamics methodology. Through simulation scenarios this study shows that energy policy and strategies based on innovation allow the electricity market in Colombia, generate a trend of competitiveness. This is illustrated by the case of some electricity industries dedicated to the generation and distribution in the Colombian electricity market. The results show a new point of view that contributes to the proposal of alternatives for the diffusion of PV energy.