 Incentive pass-through in the California Solar Initiative – An analysis based on third-party contractsYumin Li () Energy Policy, 2018, vol. 121, issue C, 534-541 Abstract: Many utilities and states have implemented incentives for residential solar to reduce the high upfront cost. There is a growing body of literature evaluating the extent of this corresponding price reduction, termed ‘incentive pass-through’, typically finding nearly complete path-through for host-owned systems. However, few studies hitherto had the data to reliably estimate path-through for third-party owned systems, which comprise most of new installations over this period. This study evaluates incentive pass-through for third-party owned systems in California between 2010 and 2014. The estimation results show path-through rate is around 62%, suggesting that unlike host-owned systems, a portion of the incentive reduced the contract price of the system and the rest of the incentive was retained by the installer. This study has important implications for future subsidy program design in the presence of different ownership types in the market. Keywords: Solar photovoltaic; Third party ownership; Incentives; Passthrough rate; Energy policy; California Solar Initiative (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:enepol:v:121:y:2018:i:c:p:534-541 DOI: 10.1016/j.enpol.2018.07.015 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.