Can Adoption of Rooftop Solar PV Panels Trigger a Utility Death Spiral?

Iqbal Adjali, Rolando Fuentes and Frederic Murphy
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Frederic Murphy: King Abdullah Petroleum Studies and Research Center

Discussion Papers from King Abdullah Petroleum Studies and Research Center

Abstract: The growing penetration of distributed energy resources (DER) such as solar and wind power is causing major changes in the electricity market. One key concern is that existing tariffs incentivize ‘free riding’ behavior by households, which leads to a cycle of rising electricity prices and DER adoption, thereby eroding utility revenues and start a death spiral. We developed a model using data from two cities in the U.S. to explore this issue.

Keywords: Decarbonization; Distributed Energy Resources (DERs); Economic Modeling; Electricity Grid; Electricity Market; Renewable Energy; Renewable Technology Adoption; Solar Photovaltaic; Solar Power; Tariffs; Wind Power (search for similar items in EconPapers)
Pages: 32
Date: 2016-05-15
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