IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i8p1403-d107692.html
   My bibliography  Save this article

Benchmarking the Performance of Solar Installers and Rooftop Photovoltaic Installations in California

Author

Listed:
  • Dadi Wang

    (Business School, China University of Political Science and Law, Beijing 100088, China
    Desautels Faculty of Management, McGill University, Montreal, QC H3A 1G5, Canada)

Abstract

Rooftop photovoltaic (PV) systems are rapidly proliferating around the world. Whether the PV systems have been efficiently installed is an issue of utmost importance for both solar installers and policymakers. However, the impact of solar installers on PV performance is not well understood. In this paper, we investigate the performance of rooftop PV installations and the solar installers using a dataset of 1035 projects developed by 213 installers in California. Based on data envelopment analysis (DEA), our study takes the PV system capacity, electricity generation, cost, modules, solar irradiance, and ambient temperature into account simultaneously to construct a unified measure for the efficiency of PV installations. We analyze the relationship between installer characteristics and PV system performance. We find PV installations with the installer also being the module manufacturer, exhibit significantly better performance than other installations. PV installations by subsidiaries of oil firms have inferior performance. PV installations by large installers on average do not perform better than the installations by small installers. Geographic diversification of an installer’s operations is significantly and inversely related to the performance of installations. We demonstrate the aforementioned findings have significant implications for policymakers and the solar installation industry.

Suggested Citation

  • Dadi Wang, 2017. "Benchmarking the Performance of Solar Installers and Rooftop Photovoltaic Installations in California," Sustainability, MDPI, vol. 9(8), pages 1-17, August.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:8:p:1403-:d:107692
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/8/1403/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/8/1403/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chang, Tian Pau, 2009. "The gain of single-axis tracked panel according to extraterrestrial radiation," Applied Energy, Elsevier, vol. 86(7-8), pages 1074-1079, July.
    2. Jonathan E. Hughes & Molly Podolefsky, 2015. "Getting Green with Solar Subsidies: Evidence from the California Solar Initiative," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(2), pages 235-275.
    3. Edward L. Glaeser & Glenn Ellison, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," American Economic Review, American Economic Association, vol. 89(2), pages 311-316, May.
    4. Knox Lovell, C. A. & Pastor, Jesus T. & Turner, Judi A., 1995. "Measuring macroeconomic performance in the OECD: A comparison of European and non-European countries," European Journal of Operational Research, Elsevier, vol. 87(3), pages 507-518, December.
    5. 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.
    6. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    7. Iribarren, Diego & Vázquez-Rowe, Ian & Rugani, Benedetto & Benetto, Enrico, 2014. "On the feasibility of using emergy analysis as a source of benchmarking criteria through data envelopment analysis: A case study for wind energy," Energy, Elsevier, vol. 67(C), pages 527-537.
    8. Arnette, Andrew N., 2013. "Integrating rooftop solar into a multi-source energy planning optimization model," Applied Energy, Elsevier, vol. 111(C), pages 456-467.
    9. Williamson, Oliver E, 1971. "The Vertical Integration of Production: Market Failure Considerations," American Economic Review, American Economic Association, vol. 61(2), pages 112-123, May.
    10. Sueyoshi, Toshiyuki & Goto, Mika & Ueno, Takahiro, 2010. "Performance analysis of US coal-fired power plants by measuring three DEA efficiencies," Energy Policy, Elsevier, vol. 38(4), pages 1675-1688, April.
    11. Sumper, Andreas & Robledo-García, Mercedes & Villafáfila-Robles, Roberto & Bergas-Jané, Joan & Andrés-Peiró, Juan, 2011. "Life-cycle assessment of a photovoltaic system in Catalonia (Spain)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3888-3896.
    12. Rajiv D. Banker & Richard C. Morey, 1986. "Efficiency Analysis for Exogenously Fixed Inputs and Outputs," Operations Research, INFORMS, vol. 34(4), pages 513-521, August.
    13. Sarıca, Kemal & Or, Ilhan, 2007. "Efficiency assessment of Turkish power plants using data envelopment analysis," Energy, Elsevier, vol. 32(8), pages 1484-1499.
    14. Yuzhuo Zhang & Xingang Zhao & Yi Zuo & Lingzhi Ren & Ling Wang, 2017. "The Development of the Renewable Energy Power Industry under Feed-In Tariff and Renewable Portfolio Standard: A Case Study of China’s Photovoltaic Power Industry," Sustainability, MDPI, vol. 9(4), pages 1-23, March.
    15. Aotian Song & Lin Lu & Zhizhao Liu & Man Sing Wong, 2016. "A Study of Incentive Policies for Building-Integrated Photovoltaic Technology in Hong Kong," Sustainability, MDPI, vol. 8(8), pages 1-21, August.
    16. Miller, Damian, 2013. "Why the oil companies lost solar," Energy Policy, Elsevier, vol. 60(C), pages 52-60.
    17. Amy H. I. Lee & He-Yau Kang & You-Jyun Liou, 2017. "A Hybrid Multiple-Criteria Decision-Making Approach for Photovoltaic Solar Plant Location Selection," Sustainability, MDPI, vol. 9(2), pages 1-21, January.
    18. Wiser, Ryan & Namovicz, Christopher & Gielecki, Mark & Smith, Robert, 2007. "The Experience with Renewable Portfolio Standards in the United States," The Electricity Journal, Elsevier, vol. 20(4), pages 8-20, May.
    19. Darghouth, Naïm R. & Barbose, Galen & Wiser, Ryan, 2011. "The impact of rate design and net metering on the bill savings from distributed PV for residential customers in California," Energy Policy, Elsevier, vol. 39(9), pages 5243-5253, September.
    20. Fionnuala Murphy & Kevin McDonnell, 2017. "A Feasibility Assessment of Photovoltaic Power Systems in Ireland; a Case Study for the Dublin Region," Sustainability, MDPI, vol. 9(2), pages 1-14, February.
    21. Tyagi, V.V. & Rahim, Nurul A.A. & Rahim, N.A. & Selvaraj, Jeyraj A./L., 2013. "Progress in solar PV technology: Research and achievement," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 443-461.
    22. Sueyoshi, Toshiyuki & Wang, Derek, 2017. "Measuring scale efficiency and returns to scale on large commercial rooftop photovoltaic systems in California," Energy Economics, Elsevier, vol. 65(C), pages 389-398.
    23. Wang, Derek D. & Sueyoshi, Toshiyuki, 2017. "Assessment of large commercial rooftop photovoltaic system installations: Evidence from California," Applied Energy, Elsevier, vol. 188(C), pages 45-55.
    24. Sueyoshi, Toshiyuki & Goto, Mika, 2014. "Photovoltaic power stations in Germany and the United States: A comparative study by data envelopment analysis," Energy Economics, Elsevier, vol. 42(C), pages 271-288.
    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. Mageswaran Rengasamy & Sivasankar Gangatharan & Rajvikram Madurai Elavarasan & Lucian Mihet-Popa, 2020. "The Motivation for Incorporation of Microgrid Technology in Rooftop Solar Photovoltaic Deployment to Enhance Energy Economics," Sustainability, MDPI, vol. 12(24), pages 1-27, December.
    2. Ioannis E. Tsolas, 2020. "Benchmarking Wind Farm Projects by Means of Series Two-Stage DEA," Clean Technol., MDPI, vol. 2(3), pages 1-12, September.
    3. Rigo, Paula D. & Siluk, Julio Cezar M. & Lacerda, Daniel P. & Spellmeier, Júlia P., 2022. "Competitive business model of photovoltaic solar energy installers in Brazil," Renewable Energy, Elsevier, vol. 181(C), pages 39-50.

    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. Wang, Derek D. & Sueyoshi, Toshiyuki, 2017. "Assessment of large commercial rooftop photovoltaic system installations: Evidence from California," Applied Energy, Elsevier, vol. 188(C), pages 45-55.
    2. Sueyoshi, Toshiyuki & Wang, Derek, 2017. "Measuring scale efficiency and returns to scale on large commercial rooftop photovoltaic systems in California," Energy Economics, Elsevier, vol. 65(C), pages 389-398.
    3. Olawale Ogunrinde & Ekundayo Shittu, 2023. "Benchmarking performance of photovoltaic power plants in multiple periods," Environment Systems and Decisions, Springer, vol. 43(3), pages 489-503, September.
    4. Sueyoshi, Toshiyuki & Goto, Mika, 2017. "Measurement of returns to scale on large photovoltaic power stations in the United States and Germany," Energy Economics, Elsevier, vol. 64(C), pages 306-320.
    5. Wu, Yunna & Ke, Yiming & Zhang, Ting & Liu, Fangtong & Wang, Jing, 2018. "Performance efficiency assessment of photovoltaic poverty alleviation projects in China: A three-phase data envelopment analysis model," Energy, Elsevier, vol. 159(C), pages 599-610.
    6. Ioannis E. Tsolas, 2020. "Benchmarking Wind Farm Projects by Means of Series Two-Stage DEA," Clean Technol., MDPI, vol. 2(3), pages 1-12, September.
    7. Zhou, Haibo & Yang, Yi & Chen, Yao & Zhu, Joe, 2018. "Data envelopment analysis application in sustainability: The origins, development and future directions," European Journal of Operational Research, Elsevier, vol. 264(1), pages 1-16.
    8. Jian Chai & Wenyue Fan & Jing Han, 2019. "Does the Energy Efficiency of Power Companies Affect Their Industry Status? A DEA Analysis of Listed Companies in Thermal Power Sector," Sustainability, MDPI, vol. 12(1), pages 1-12, December.
    9. Sueyoshi, Toshiyuki & Wang, Derek, 2018. "DEA environmental assessment on US petroleum industry: Non-radial approach with translation invariance in time horizon," Energy Economics, Elsevier, vol. 72(C), pages 276-289.
    10. Derek Wang & Tianchi Li, 2018. "Carbon Emission Performance of Independent Oil and Natural Gas Producers in the United States," Sustainability, MDPI, vol. 10(1), pages 1-18, January.
    11. Sueyoshi, Toshiyuki & Goto, Mika & Wang, Derek, 2017. "Malmquist index measurement for sustainability enhancement in Chinese municipalities and provinces," Energy Economics, Elsevier, vol. 67(C), pages 554-571.
    12. Sueyoshi, Toshiyuki & Yuan, Yan & Li, Aijun & Wang, Daoping, 2017. "Methodological comparison among radial, non-radial and intermediate approaches for DEA environmental assessment," Energy Economics, Elsevier, vol. 67(C), pages 439-453.
    13. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    14. Benjamin Hampf, 2014. "Separating environmental efficiency into production and abatement efficiency: a nonparametric model with application to US power plants," Journal of Productivity Analysis, Springer, vol. 41(3), pages 457-473, June.
    15. Nin-Pratt, A., 2018. "Technical and Environmental Efficiency of Water Use in Agriculture," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277486, International Association of Agricultural Economists.
    16. Sueyoshi, Toshiyuki & Goto, Mika, 2015. "Environmental assessment on coal-fired power plants in U.S. north-east region by DEA non-radial measurement," Energy Economics, Elsevier, vol. 50(C), pages 125-139.
    17. Li, Jiaxin & Wang, Zihan & Cheng, Xin & Shuai, Jing & Shuai, Chuanmin & Liu, Jing, 2020. "Has solar PV achieved the national poverty alleviation goals? Empirical evidence from the performances of 52 villages in rural China," Energy, Elsevier, vol. 201(C).
    18. Gultom, Yohanna M.L., 2021. "When extractive political institutions affect public-private partnerships: Empirical evidence from Indonesia's independent power producers under two political regimes," Energy Policy, Elsevier, vol. 149(C).
    19. Nima Monghasemi & Amir Vadiee & Konstantinos Kyprianidis & Elaheh Jalilzadehazhari, 2023. "Rank-Based Assessment of Grid-Connected Rooftop Solar Panel Deployments Considering Scenarios for a Postponed Installation," Energies, MDPI, vol. 16(21), pages 1-16, October.
    20. Wang, Yi-Shu & Xie, Bai-Chen & Shang, Li-Feng & Li, Wen-Hua, 2013. "Measures to improve the performance of China’s thermal power industry in view of cost efficiency," Applied Energy, Elsevier, vol. 112(C), pages 1078-1086.

    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:gam:jsusta:v:9:y:2017:i:8:p:1403-:d:107692. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.