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Efficient scale for photovoltaic systems and Florida's solar rebate program

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  • Burkart, Christopher S.
  • Arguea, Nestor M.

Abstract

This paper presents a critical view of Florida's photovoltaic (PV) subsidy system and proposes an econometric model of PV system installation and generation costs. Using information on currently installed systems, average installation cost relations for residential and commercial systems are estimated and cost-efficient scales of installation panel wattage are identified. Productive efficiency in annual generating capacity is also examined under flexible panel efficiency assumptions. We identify potential gains in efficiency and suggest changes in subsidy system constraints, providing important guidance for the implementation of future incentive programs. Specifically, we find that the subsidy system discouraged residential applicants from installing at the cost-efficient scale but over-incentivized commercial applicants, resulting in inefficiently sized installations.

Suggested Citation

  • Burkart, Christopher S. & Arguea, Nestor M., 2012. "Efficient scale for photovoltaic systems and Florida's solar rebate program," Energy Policy, Elsevier, vol. 48(C), pages 470-478.
    • Handle: RePEc:eee:enepol:v:48:y:2012:i:c:p:470-478
    DOI: 10.1016/j.enpol.2012.05.076
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    References listed on IDEAS

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    1. Menz, Fredric C. & Vachon, Stephan, 2006. "The effectiveness of different policy regimes for promoting wind power: Experiences from the states," Energy Policy, Elsevier, vol. 34(14), pages 1786-1796, September.
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    3. Wiser, Ryan & Barbose, Galen & Holt, Edward, 2011. "Supporting solar power in renewables portfolio standards: Experience from the United States," Energy Policy, Elsevier, vol. 39(7), pages 3894-3905, July.
    4. Geoffrey Heal, 2009. "The Economics of Renewable Energy," NBER Working Papers 15081, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Moosavian, S.M. & Rahim, N.A. & Selvaraj, J. & Solangi, K.H., 2013. "Energy policy to promote photovoltaic generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 44-58.

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