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Electricity consumption changes following solar adoption: Testing for a solar rebound

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  • Ross C. Beppler
  • Daniel C. Matisoff
  • Matthew E. Oliver

Abstract

We use household‐level data to explore residential electricity use patterns following installation of solar panels. Solar adoption leads to an increase in total electricity consumption relative to a matched non‐adopting control group. Our point estimate translates to a rebound effect of 28.5%, suggesting that nearly a third of the electricity produced by a customer's solar panels is used for increased energy services, rather than reduced grid electricity consumption. We explore several potential drivers of an increase in electricity consumption. These results have important implications for electricity planning and policy, suggesting that rooftop solar stimulates additional demand for electricity.

Suggested Citation

  • Ross C. Beppler & Daniel C. Matisoff & Matthew E. Oliver, 2023. "Electricity consumption changes following solar adoption: Testing for a solar rebound," Economic Inquiry, Western Economic Association International, vol. 61(1), pages 58-81, January.
    • Handle: RePEc:bla:ecinqu:v:61:y:2023:i:1:p:58-81
    DOI: 10.1111/ecin.13031
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    Cited by:

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    2. John List & Ioannis Pragidis & Michael Price, 2024. "Toward an Understanding of the Economics of Prosumers: Evidence from a Natural Field Experiment in Energy," Natural Field Experiments 00791, The Field Experiments Website.
    3. Hancevic, Pedro I. & Sandoval, Hector H., 2023. "Solar panel adoption among Mexican small and medium-sized commercial and service businesses," Energy Economics, Elsevier, vol. 126(C).
    4. Atasoy, Ayse Tugba & Schmitz, Hendrik & Madlener, Reinhard, 2021. "Mechanisms for Rebound Effects of Solar Electricity Prosuming in Germany," FCN Working Papers 10/2021, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised 01 Jun 2023.
    5. Francesco Pietro Colelli & Enrica De Cian & Wilmer Pasut & Lucia Piazza, 2023. "Toward Net Zero in the midst of the energy and climate crises: the response of residential photovoltaic systems," Working Papers 2023:18, Department of Economics, University of Venice "Ca' Foscari".
    6. Jiang, Hou & Yao, Ling & Lu, Ning & Qin, Jun & Zhang, Xiaotong & Liu, Tang & Zhang, Xingxing & Zhou, Chenghu, 2024. "Exploring the optimization of rooftop photovoltaic scale and spatial layout under curtailment constraints," Energy, Elsevier, vol. 293(C).

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