 Prosumers: Grid vs. individual storageSai Bravo-Melgarejo and Carole Haritchabalet Energy Economics, 2025, vol. 141, issue C Abstract: We present a stylized microeconomic model to analyze solar panels and storage investment decisions of a representative consumer under either grid (credit regulation) or individual (price regulation) storage. We identify the conditions under which prosumers become storers. We show that solar technology must be more competitive under credit than price regulation for consumers to invest in storage. We calibrate our model using French data from 2023 and 2030 and consider batteries and fuel-cells as potential individual storage technologies. France’s current price regulation incentivizes investment in solar capacity, but not in storage. Conversely, credit regulation would immediately encourage energy storage. Looking ahead to 2030, both regulatory frameworks would incentivize energy storage. The distribution system operator prefers credit regulation, provided the regulator allows full energy recovery. Overall, energy storage enhances welfare under both regulatory frameworks. Keywords: Renewable energy; Storage; Decentralized production; Batteries; Hydrogen (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:141:y:2025:i:c:s0140988324008041 DOI: 10.1016/j.eneco.2024.108095 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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