The rebound effect of solar panel adoption: Evidence from Dutch households

Erdal Aydın, Dirk Brounen and Ahmet Ergün

Energy Economics, 2023, vol. 120, issue C

Abstract: Households adopt solar panels for different reasons, but usually with a reduced electricity bill in mind. However, the access to solar power at near zero marginal costs may well induce rebound effects which shift households’ demand curve and distort the net effects of solar PV investments. By analyzing high frequency data on household electricity consumption and production, we document solar PV rebound effect of 7.7 percent, a result that is robust to different sample and model specifications. We also find that households shift their consumption to the time periods when solar electricity production is higher. The solar PV rebound effect shows heterogeneity across time and production level, with higher rebound effects during seasons characterized by higher solar irradiance.

Keywords: Rebound effect; Solar panels; Electricity consumption; Renewable energy (search for similar items in EconPapers)
JEL-codes: D12 Q40 R20 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:120:y:2023:i:c:s0140988323001433

DOI: 10.1016/j.eneco.2023.106645

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