Residential Solar PV and Electricity Consumption: Pro-environmental behaviors, technology adoption, and pathways to a low-carbon society

Tomoaki Nakaishi, Sunbin Yoo, Junya Kumagai and Shunsuke Managi

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: The adoption of residential solar photovoltaic (PV) systems is widely regarded as a critical measure to mitigate global warming by reducing carbon emissions and supporting a shift toward renewable energy. However, the broader impact of residential solar PV on household consumption behaviors remains underexplored. This study investigates the effects of residential solar PV adoption on household electricity consumption, with a focus on the mediating roles of pro-environmental behaviors and technology adoption. Using structural equation modeling (SEM) and data from Japanese households, we examine electricity costs post-adoption as a proxy for usage and emissions, highlighting seasonal variations across winter, summer, and spring. Our findings reveal that residential solar PV adoption is associated with increased electricity costs in winter (13.899%) and spring (2.429%), but a decrease in summer (6.322%). This pattern is partly driven by a greater use of energy-efficient products and electric vehicles (EVs) beyond levels that would have been previously been necessary, actually increasing costs, as households perceive solar energy as a low-cost resource. These insights suggest that while solar PV reduces fossil fuel reliance, it may inadvertently lead to higher energy use. To maximize the environmental benefits of solar energy, policies that promote energy conservation, incentivize battery storage, and curb excessive use of energy-efficient products are recommended.

Pages: 39 pages
Date: 2025-02
New Economics Papers: this item is included in nep-ene, nep-env, nep-reg and nep-tre
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