IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v84y2015icp69-79.html
   My bibliography  Save this article

Spreading the rooftop revolution: What policies enable solar-as-a-service?

Author

Listed:
  • Overholm, Harald

Abstract

Firms using third-party-ownership (TPO) business models transform solar rooftop installations into a simple service. TPO firms sign long-term agreements with building owners or users to install, finance and manage locally sited solar panels. Customers simply buy solar electricity. The business model can increase total PV market demand by removing central barriers to PV adoption including technology risk, financing needs, and learning costs. TPO is now the dominant US model for residential solar and attempts to use the business model are underway in Europe and Asia.

Suggested Citation

  • Overholm, Harald, 2015. "Spreading the rooftop revolution: What policies enable solar-as-a-service?," Energy Policy, Elsevier, vol. 84(C), pages 69-79.
  • Handle: RePEc:eee:enepol:v:84:y:2015:i:c:p:69-79
    DOI: 10.1016/j.enpol.2015.04.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421515001718
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2015.04.021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Negro, Simona O. & Alkemade, Floortje & Hekkert, Marko P., 2012. "Why does renewable energy diffuse so slowly? A review of innovation system problems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3836-3846.
    2. Duplessis, Bruno & Adnot, Jérôme & Dupont, Maxime & Racapé, François, 2012. "An empirical typology of energy services based on a well-developed market: France," Energy Policy, Elsevier, vol. 45(C), pages 268-276.
    3. Andrea Masini & Emanuela Menichetti, 2013. "Investment decisions in the renewable energy sector: An analysis of non-financial drivers," Post-Print hal-00796331, HAL.
    4. Allan Afuah, 2000. "How much do your co‐opetitors' capabilities matter in the face of technological change?," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 397-404, March.
    5. Friebe, Christian A. & Flotow, Paschen von & Täube, Florian A., 2013. "Exploring the link between products and services in low-income markets—Evidence from solar home systems," Energy Policy, Elsevier, vol. 52(C), pages 760-769.
    6. Richards, Garrett & Noble, Bram & Belcher, Ken, 2012. "Barriers to renewable energy development: A case study of large-scale wind energy in Saskatchewan, Canada," Energy Policy, Elsevier, vol. 42(C), pages 691-698.
    7. Drury, Easan & Miller, Mackay & Macal, Charles M. & Graziano, Diane J. & Heimiller, Donna & Ozik, Jonathan & Perry IV, Thomas D., 2012. "The transformation of southern California's residential photovoltaics market through third-party ownership," Energy Policy, Elsevier, vol. 42(C), pages 681-690.
    8. Karsten Neuhoff, 2005. "Large-Scale Deployment of Renewables for Electricity Generation," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 21(1), pages 88-110, Spring.
    9. Chowdhury, Sanjeeda & Sumita, Ushio & Islam, Ashraful & Bedja, Idriss, 2014. "Importance of policy for energy system transformation: Diffusion of PV technology in Japan and Germany," Energy Policy, Elsevier, vol. 68(C), pages 285-293.
    10. Klessmann, Corinna & Held, Anne & Rathmann, Max & Ragwitz, Mario, 2011. "Status and perspectives of renewable energy policy and deployment in the European Union—What is needed to reach the 2020 targets?," Energy Policy, Elsevier, vol. 39(12), pages 7637-7657.
    11. Sorrell, Steve, 2007. "The economics of energy service contracts," Energy Policy, Elsevier, vol. 35(1), pages 507-521, January.
    12. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9780521182935.
    13. Andrea Masini & Emanuela Menichetti, 2013. "Investment Decisions in the Renewable Energy Sector: An Analysis of Non-Financial Drivers," Working Papers hal-01947453, HAL.
    14. Liu, Xiaohui & O'Rear, Eric G. & Tyner, Wallace E. & Pekny, Joseph F., 2014. "Purchasing vs. leasing: A benefit-cost analysis of residential solar PV panel use in California," Renewable Energy, Elsevier, vol. 66(C), pages 770-774.
    15. Bazilian, Morgan & Onyeji, Ijeoma & Liebreich, Michael & MacGill, Ian & Chase, Jennifer & Shah, Jigar & Gielen, Dolf & Arent, Doug & Landfear, Doug & Zhengrong, Shi, 2013. "Re-considering the economics of photovoltaic power," Renewable Energy, Elsevier, vol. 53(C), pages 329-338.
    16. Masini, Andrea & Menichetti, Emanuela, 2013. "Investment decisions in the renewable energy sector: An analysis of non-financial drivers," Technological Forecasting and Social Change, Elsevier, vol. 80(3), pages 510-524.
    17. Ron Adner & Rahul Kapoor, 2010. "Value creation in innovation ecosystems: how the structure of technological interdependence affects firm performance in new technology generations," Strategic Management Journal, Wiley Blackwell, vol. 31(3), pages 306-333, March.
    18. Masini, Andrea & Menichetti , Emanuela, 2013. "Investment Decisions in the Renewable Energy Sector: An Analysis of Non-Financial Drivers," HEC Research Papers Series 976, HEC Paris.
    19. Reichelstein, Stefan & Yorston, Michael, 2013. "The prospects for cost competitive solar PV power," Energy Policy, Elsevier, vol. 55(C), pages 117-127.
    20. Dong, Changgui & Wiser, Ryan, 2013. "The impact of city-level permitting processes on residential photovoltaic installation prices and development times: An empirical analysis of solar systems in California cities," Energy Policy, Elsevier, vol. 63(C), pages 531-542.
    21. Li, Hui & Yi, Hongtao, 2014. "Multilevel governance and deployment of solar PV panels in U.S. cities," Energy Policy, Elsevier, vol. 69(C), pages 19-27.
    22. Steinberger, Julia K. & van Niel, Johan & Bourg, Dominique, 2009. "Profiting from negawatts: Reducing absolute consumption and emissions through a performance-based energy economy," Energy Policy, Elsevier, vol. 37(1), pages 361-370, January.
    23. Huijben, J.C.C.M. & Verbong, G.P.J., 2013. "Breakthrough without subsidies? PV business model experiments in the Netherlands," Energy Policy, Elsevier, vol. 56(C), pages 362-370.
    24. Seel, Joachim & Barbose, Galen L. & Wiser, Ryan H., 2014. "An analysis of residential PV system price differences between the United States and Germany," Energy Policy, Elsevier, vol. 69(C), pages 216-226.
    25. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9781107005198.
    26. Kulatilaka, Nalin & Santiago, Leonardo & Vakili, Pirooz, 2014. "Reallocating risks and returns to scale up adoption of distributed electricity resources," Energy Policy, Elsevier, vol. 69(C), pages 566-574.
    27. Sener, Can & Fthenakis, Vasilis, 2014. "Energy policy and financing options to achieve solar energy grid penetration targets: Accounting for external costs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 854-868.
    28. Alafita, T. & Pearce, J.M., 2014. "Securitization of residential solar photovoltaic assets: Costs, risks and uncertainty," Energy Policy, Elsevier, vol. 67(C), pages 488-498.
    29. Elizabeth Garnsey & Yuen Yoong Leong, 2008. "Combining Resource-Based and Evolutionary Theory to Explain the Genesis of Bio-networks," Industry and Innovation, Taylor & Francis Journals, vol. 15(6), pages 669-686.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peprah, Forson & Gyamfi, Samuel & Effah-Donyina, Eric & Amo-Boateng, Mark, 2023. "The pathway for electricity prosumption in Ghana," Energy Policy, Elsevier, vol. 177(C).
    2. Wadhawan, Siddharth R. & Pearce, Joshua M., 2017. "Power and energy potential of mass-scale photovoltaic noise barrier deployment: A case study for the U.S," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 125-132.
    3. Horváth, Dóra & Szabó, Roland Zs., 2018. "Evolution of photovoltaic business models: Overcoming the main barriers of distributed energy deployment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 623-635.
    4. Elie, Luc & Granier, Caroline & Rigot, Sandra, 2021. "The different types of renewable energy finance: A Bibliometric analysis," Energy Economics, Elsevier, vol. 93(C).
    5. Ferreira, Agmar & Kunh, Sheila S. & Fagnani, Kátia C. & De Souza, Tiago A. & Tonezer, Camila & Dos Santos, Geocris Rodrigues & Coimbra-Araújo, Carlos H., 2018. "Economic overview of the use and production of photovoltaic solar energy in brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 181-191.
    6. Paraskevi Giourka & Mark W. J. L. Sanders & Komninos Angelakoglou & Dionysis Pramangioulis & Nikos Nikolopoulos & Dimitrios Rakopoulos & Athanasios Tryferidis & Dimitrios Tzovaras, 2019. "The Smart City Business Model Canvas—A Smart City Business Modeling Framework and Practical Tool," Energies, MDPI, vol. 12(24), pages 1-17, December.
    7. Jos? ?ngel Gimeno & Eva Llera Sastresa & Sabina Scarpellini, 2020. "Determinants and barriers of PV self-consumption in Spain from the perception of the installers for the promotion of distributed energy systems," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(1), pages 153-169.
    8. Engelken, Maximilian & Römer, Benedikt & Drescher, Marcus & Welpe, Isabell M. & Picot, Arnold, 2016. "Comparing drivers, barriers, and opportunities of business models for renewable energies: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 795-809.
    9. Fuentes González, Fabián & Webb, Janette & Sharmina, Maria & Hannon, Matthew & Braunholtz-Speight, Timothy & Pappas, Dimitrios, 2022. "Local energy businesses in the United Kingdom: Clusters and localism determinants based on financial ratios," Energy, Elsevier, vol. 239(PB).
    10. Francesco Mancini & Gianluigi Lo Basso, 2020. "How Climate Change Affects the Building Energy Consumptions Due to Cooling, Heating, and Electricity Demands of Italian Residential Sector," Energies, MDPI, vol. 13(2), pages 1-24, January.
    11. Brown, Donal & Hall, Stephen & Davis, Mark E., 2019. "Prosumers in the post subsidy era: an exploration of new prosumer business models in the UK," Energy Policy, Elsevier, vol. 135(C).
    12. Jed J. Cohen, Levan Elbakidze, and Randall Jackson, 2020. "Solar Bait: How U.S. States Attract Solar Investments from Large Corporations," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 167-190.
    13. Ahlgren Ode, Kajsa & Lagerstedt Wadin, Jessica, 2019. "Business model translation—The case of spreading a business model for solar energy," Renewable Energy, Elsevier, vol. 133(C), pages 23-31.
    14. Francesco Mancini & Benedetto Nastasi, 2020. "Solar Energy Data Analytics: PV Deployment and Land Use," Energies, MDPI, vol. 13(2), pages 1-18, January.
    15. Chiara Modanese & Hannu S. Laine & Toni P. Pasanen & Hele Savin & Joshua M. Pearce, 2018. "Economic Advantages of Dry-Etched Black Silicon in Passivated Emitter Rear Cell (PERC) Photovoltaic Manufacturing," Energies, MDPI, vol. 11(9), pages 1-18, September.
    16. Perpiña Castillo, Carolina & Batista e Silva, Filipe & Lavalle, Carlo, 2016. "An assessment of the regional potential for solar power generation in EU-28," Energy Policy, Elsevier, vol. 88(C), pages 86-99.
    17. Côté, Elizabeth & Pons-Seres de Brauwer, Cristian, 2023. "Preferences of homeowners for heat-pump leasing: Evidence from a choice experiment in France, Germany, and Switzerland," Energy Policy, Elsevier, vol. 183(C).
    18. Brown, Donal & Hall, Stephen & Martiskainen, Mari & Davis, Mark E., 2022. "Conceptualising domestic energy service business models: A typology and policy recommendations," Energy Policy, Elsevier, vol. 161(C).
    19. Specht, Jan Martin & Madlener, Reinhard, 2019. "Energy Supplier 2.0: A conceptual business model for energy suppliers aggregating flexible distributed assets and policy issues raised," Energy Policy, Elsevier, vol. 135(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shouro Dasgupta & Enrica De Cian, 2016. "Institutions and the Environment: Existing Evidence and Future Directions," Working Papers 2016.41, Fondazione Eni Enrico Mattei.
    2. Toka, Agorasti & Iakovou, Eleftherios & Vlachos, Dimitrios & Tsolakis, Naoum & Grigoriadou, Anastasia-Loukia, 2014. "Managing the diffusion of biomass in the residential energy sector: An illustrative real-world case study," Applied Energy, Elsevier, vol. 129(C), pages 56-69.
    3. Strupeit, Lars, 2017. "An innovation system perspective on the drivers of soft cost reduction for photovoltaic deployment: The case of Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 273-286.
    4. Hu, Jing & Harmsen, Robert & Crijns-Graus, Wina & Worrell, Ernst, 2018. "Barriers to investment in utility-scale variable renewable electricity (VRE) generation projects," Renewable Energy, Elsevier, vol. 121(C), pages 730-744.
    5. Zhang, Fang, 2023. "Does not having an NDB disadvantage a country in finance mobilization for the energy transition? A comparative analysis of the solar PV deployment in the United States, Germany and China," Energy Policy, Elsevier, vol. 172(C).
    6. Tongyu Meng & Jamie Newth & Christine Woods, 2022. "Ethical Sensemaking in Impact Investing: Reasons and Motives in the Chinese Renewable Energy Sector," Journal of Business Ethics, Springer, vol. 179(4), pages 1091-1117, September.
    7. Salm, Sarah & Hille, Stefanie Lena & Wüstenhagen, Rolf, 2016. "What are retail investors' risk-return preferences towards renewable energy projects? A choice experiment in Germany," Energy Policy, Elsevier, vol. 97(C), pages 310-320.
    8. Semmler, Willi & Di Bartolomeo, Giovanni & Minooei Fard, Behnaz & Braga, Joao Paulo, 2022. "Limit pricing and entry game of renewable energy firms into the energy sector," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 179-190.
    9. Monasterolo, Irene & de Angelis, Luca, 2020. "Blind to carbon risk? An analysis of stock market reaction to the Paris Agreement," Ecological Economics, Elsevier, vol. 170(C).
    10. Blondiau, Yuliya & Reuter, Emmanuelle, 2019. "Why is the grass greener on the other side? Decision modes and location choice by wind energy investors," Journal of Business Research, Elsevier, vol. 102(C), pages 44-55.
    11. Joshua Sunday Riti & Deyong Song & Yang Shu & Miriam Kamah & Agya Adi Atabani, 2018. "Does renewable energy ensure environmental quality in favour of economic growth? Empirical evidence from China’s renewable development," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(5), pages 2007-2030, September.
    12. Doina Maria Radulescu & Philippe Sulger, 2021. "Interdependencies Between Countries in the Provision of Energy," CESifo Working Paper Series 8896, CESifo.
    13. Ackermann, Simon & Szabo, Andrei & Bamberger, Joachim & Steinke, Florian, 2022. "Design and optimization of performance guarantees for hybrid power plants," Energy, Elsevier, vol. 239(PA).
    14. Bai, Rui & Lin, Boqiang & Liu, Xiying, 2021. "Government subsidies and firm-level renewable energy investment: New evidence from partially linear functional-coefficient models," Energy Policy, Elsevier, vol. 159(C).
    15. Escoffier, Margaux & Hache, Emmanuel & Mignon, Valérie & Paris, Anthony, 2021. "Determinants of solar photovoltaic deployment in the electricity mix: Do oil prices really matter?," Energy Economics, Elsevier, vol. 97(C).
    16. Radulescu, Doina & Sulger, Philippe, 2022. "Interdependencies between countries in the provision of energy," Energy Economics, Elsevier, vol. 107(C).
    17. Valentin Bertsch & Valeria Di Cosmo, 2018. "Are Renewables Profitable in 2030? A Comparison between Wind and Solar across Europe," Working Papers 2018.28, Fondazione Eni Enrico Mattei.
    18. Mazzucato, Mariana & Semieniuk, Gregor, 2018. "Financing renewable energy: Who is financing what and why it matters," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 8-22.
    19. Michaela Makešová & Michaela Valentová, 2021. "The Concept of Multiple Impacts of Renewable Energy Sources: A Critical Review," Energies, MDPI, vol. 14(11), pages 1-21, May.
    20. Albino, Vito & Ardito, Lorenzo & Dangelico, Rosa Maria & Messeni Petruzzelli, Antonio, 2014. "Understanding the development trends of low-carbon energy technologies: A patent analysis," Applied Energy, Elsevier, vol. 135(C), pages 836-854.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:84:y:2015:i:c:p:69-79. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.