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

Ross C. Beppler, Daniel C. Matisoff and Matthew Oliver

Economic Inquiry, 2023, vol. 61, issue 1, 58-81

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.

Date: 2023
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https://doi.org/10.1111/ecin.13031

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