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Solar Adoption by Mandates

Author

Listed:
  • Carattini, Stefano
  • Davis, Wade
  • Figge, Béla
  • Heimerdinger, Anton

Abstract

Solar mandates are spreading rapidly. We leverage California’s frontrunner experience to examine their economics. First, we parameterize an engineering model to estimate private payoffs from solar adoption in residential new construction. Second, we test for a “solar gap†by comparing payoffs with observed adoption. Although estimated payoffs are generally positive, adoption varies widely. Most buildings do not adopt solar despite positive estimated payoffs, which explain little of the variation in adoption decisions. Third, we evaluate San Francisco’s citywide and California’s statewide mandates. Both mandates increased solar adoption considerably.

Suggested Citation

  • Carattini, Stefano & Davis, Wade & Figge, Béla & Heimerdinger, Anton, 2026. "Solar Adoption by Mandates," CEPR Discussion Papers 21808, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:21808
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    File URL: https://cepr.org/publications/DP21808
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    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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