Photovoltaics and the Solar Rebound: Evidence from Germany

Manuel Frondel, Kathrin Kaestner, Stephan Sommer and Colin Vance

Land Economics, 2023, vol. 99, issue 2, 265-282

Abstract: Recent research suggests that households increase their electricity consumption after installing photovoltaic (PV) panels, a behavioral change commonly referred to as the solar rebound. Using panel data originating from the German Residential Energy Consumption Survey, we investigate the existence of a solar rebound effect. Our empirical results suggest that PV panel adoption does not change the amount of electricity that households take from the grid. As we derive theoretically, this implies a solar rebound bounded from above by about 50%, while back-of-the-envelope calculations suggest a lower bound of 12% and an average solar rebound of 35%.

JEL-codes: Q21 Q24 (search for similar items in EconPapers)
Date: 2023
Note: DOI: https://doi.org/10.3368/le.070621-0077R1
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:99:y:2023:i:2:p:265-282

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