Incentive pass-through for residential solar systems in California

Changgui Dong, Ryan Wiser and Varun Rai

Energy Economics, 2018, vol. 72, issue C, 154-165

Abstract: This paper estimates the incentive pass-through rate for the two largest solar photovoltaic rebate programs in the U.S.: California Solar Initiative and its predecessor Emerging Renewables Program. We apply both a structural-modeling approach based on the conduct parameter and a reduced-form regression analysis using different fixed effects. Identification comes from rebate level stepwise changes within each of the three major electric utilities in California and different rebate levels across the utilities. The results from both approaches suggest an average pass-through rate of direct incentives of nearly 100%, though with minor regional differences among California counties. These results suggest a relatively competitive market and a smoothly operating subsidy program, at least from an incentive pass-through perspective.

Keywords: Incentive pass-through; Solar photovoltaic; California solar initiative (search for similar items in EconPapers)
JEL-codes: H22 H23 L11 Q41 Q42 Q48 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:72:y:2018:i:c:p:154-165

DOI: 10.1016/j.eneco.2018.04.014

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