Identifying Business Models for Photovoltaic Systems with Storage in the Italian Market: A Discrete Choice Experiment

Veronica Galassi () and Reinhard Madlener
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Veronica Galassi: E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), http://www.eonerc.rwth-aachen.de/fcn

No 19/2014, FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)

Abstract: The future diffusion of photovoltaic systems relies heavily on the ability of utilities and policy-makers to properly valorize such volatile renewable energy-sources technologies. We conduct a discrete choice experiment to investigate which types of business models for photovoltaic systems could bring the highest utility to the Italian households. Our focus is not just on the costs and benefits of a photovoltaic system, but also on features like system control and maintenance, the duration of the electricity supply contract, as well as preferred channels of purchase and installation. Most importantly, we also include alternatives with battery storage. The data analysis – based on the Hierarchical Bayes estimation technique – reveals credible preferences for PV photovoltaic systems with battery storage facilities controlled by the utility or solutions characterized by lower investment costs. Multivariate analysis of variance coupled with the estimation of a random effects model with mixture of normal distributions suggests the presence of some heterogeneity across adopters and knowledgeable non-adopters, the latter particularly involving risk perception. Sensitivity analysis provides additional evidence in favor or these findings. On the basis of the results, we provide utilities and policy-makers with final recommendations.

Keywords: DCE; Residential PV; Energy storage; Feed-in tariff (search for similar items in EconPapers)
JEL-codes: C25 D12 O33 Q42 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2014-12
New Economics Papers: this item is included in nep-dcm, nep-ene and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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