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Household electricity demand after the introduction of solar photovoltaic systems

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  • Sekitou, Mai
  • Tanaka, Kenta
  • Managi, Shunsuke

Abstract

This study quantitatively evaluates the effect of solar photovoltaic system (PV system) installation on the actual amounts of electricity usage in Japanese households. Using consumer-level data, the effects of installing a PV system on the electricity demand are estimated in terms of the impact of the technological performance which was a direct contributor to a reduction in the electricity demand. Also, we confirm the effect of peoples’ electricity consumption behavior by installation of the PV system. As a result, we estimate that the technological performance of PV system had a major effect on the reduction of the electricity demand after the installation of a PV system. Furthermore, for each additional 1 kW increase in battery capacity, the average electricity fee savings per month are approximately 517 Japanese yen per month in the summer, 152 Japanese yen per month in the winter, and approximately 334 Japanese yen annually.

Suggested Citation

  • Sekitou, Mai & Tanaka, Kenta & Managi, Shunsuke, 2018. "Household electricity demand after the introduction of solar photovoltaic systems," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 102-110.
    • Handle: RePEc:eee:ecanpo:v:57:y:2018:i:c:p:102-110
    DOI: 10.1016/j.eap.2017.04.001
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    Cited by:

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    2. Frondel, Manuel & Kaestner, Kathrin & Sommer, Stephan & Vance, Colin, 2021. "Photovoltaics and the Solar Rebound: Evidence for Germany," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242356, Verein für Socialpolitik / German Economic Association.
    3. Athukorala, Wasantha & Wilson, Clevo & Managi, Shunsuke & Karunarathna, Muditha, 2019. "Household demand for electricity: The role of market distortions and prices in competition policy," Energy Policy, Elsevier, vol. 134(C).
    4. Lu, Qing & Yu, Hao & Zhao, Kangli & Leng, Yajun & Hou, Jianchao & Xie, Pinjie, 2019. "Residential demand response considering distributed PV consumption: A model based on China's PV policy," Energy, Elsevier, vol. 172(C), pages 443-456.
    5. Massimo Filippini & Lin Zhang, 2019. "Impacts of heat metering and efficiency retrofit policy on residential energy consumption in China," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 203-216, April.
    6. Kenta Tanaka & Clevo Wilson & Shunsuke Managi, 2022. "Impact of feed-in tariffs on electricity consumption," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(1), pages 49-72, January.
    7. Hyun, Suk & Taghizadeh-Hesary, Farhad & Shim, Hyoung Suk, 2021. "Modeling solar energy system demand using household-level data in Myanmar," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 629-639.
    8. Frondel, Manuel & Kaestner, Kathrin & Sommer, Stephan & Vance, Colin, 2022. "Photovoltaics and the solar rebound: Evidence for Germany," Ruhr Economic Papers 954, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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