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Beyond payback time: Understanding residential preferences for distributed solar PV in southern Brazil

Author

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  • Marcuzzo, Rafael
  • Silberg, Timothy Robert
  • Borges, Cosme Polese
  • Uriona-Maldonado, Mauricio
  • Vaz, Caroline Rodrigues

Abstract

Solar energy, particularly Photovoltaic (PV) generation under the Micro and Mini Distributed Generation (MMDG) model, is a key alternative to accelerate an inclusive and decentralized energy transition. Yet, the benefits of decentralization are not always equitable, requiring context-specific technical and economic analysis. This article presents an econometric analysis of consumer preferences for residential PV systems and their policy context regarding MMDG. A literature review and expert interviews identified five key attributes: payback time, access to microgrids, installation warranty, response time for technical assistance, and net metering taxes. These attributes formed the basis of a discrete choice experiment that produced utility coefficients representing preferences and willingness to pay. The experiment surveyed 90 individuals (adopters and potential adopters) in southern Brazil, a region with decentralization challenges and rapid PV adoption (7.97 GW in 2024). Results show installation warranty and technical assistance are the most influential factors. Participants were willing to accept payback periods of up to 7 years for an installation warranty of at least 3 years. Regional social inequalities produced heterogeneity among respondents, especially by age and education. The study recommends policies to regulate after-sales services, promote user education, and address service availability gaps.

Suggested Citation

  • Marcuzzo, Rafael & Silberg, Timothy Robert & Borges, Cosme Polese & Uriona-Maldonado, Mauricio & Vaz, Caroline Rodrigues, 2026. "Beyond payback time: Understanding residential preferences for distributed solar PV in southern Brazil," Renewable Energy, Elsevier, vol. 260(C).
    • Handle: RePEc:eee:renene:v:260:y:2026:i:c:s0960148125027909
    DOI: 10.1016/j.renene.2025.125126
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