Prosumage of solar electricity: tariff design, capacity investments, and power system effects

Claudia G\"unther, Wolf-Peter Schill and Alexander Zerrahn

Papers from arXiv.org

Abstract: We analyze how tariff design incentivizes households to invest in residential photovoltaic and battery systems, and explore selected power sector effects. To this end, we apply an open-source power system model featuring prosumage agents to German 2030 scenarios. Results show that lower feed-in tariffs substantially reduce investments in photovoltaics, yet optimal battery sizing and self-generation are relatively robust. With increasing fixed parts of retail tariffs, optimal battery capacities and self-generation are smaller, and households contribute more to non-energy power sector costs. When choosing tariff designs, policy makers should not aim to (dis-)incentivize prosumage as such, but balance effects on renewable capacity expansion and system cost contribution.

Date: 2019-07
New Economics Papers: this item is included in nep-ene and nep-reg
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Citations: View citations in EconPapers (3)

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