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The rebound effect of solar panel adoption: Evidence from Dutch households

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  • Aydın, Erdal
  • Brounen, Dirk
  • Ergün, Ahmet

Abstract

Households adopt solar panels for different reasons, but usually with a reduced electricity bill in mind. However, the access to solar power at near zero marginal costs may well induce rebound effects which shift households’ demand curve and distort the net effects of solar PV investments. By analyzing high frequency data on household electricity consumption and production, we document solar PV rebound effect of 7.7 percent, a result that is robust to different sample and model specifications. We also find that households shift their consumption to the time periods when solar electricity production is higher. The solar PV rebound effect shows heterogeneity across time and production level, with higher rebound effects during seasons characterized by higher solar irradiance.

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  • Aydın, Erdal & Brounen, Dirk & Ergün, Ahmet, 2023. "The rebound effect of solar panel adoption: Evidence from Dutch households," Energy Economics, Elsevier, vol. 120(C).
    • Handle: RePEc:eee:eneeco:v:120:y:2023:i:c:s0140988323001433
    DOI: 10.1016/j.eneco.2023.106645
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    References listed on IDEAS

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    Cited by:

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    2. Rydehell, Hanna & Lantz, Björn & Mignon, Ingrid & Lindahl, Johan, 2024. "The impact of solar PV subsidies on investment over time - the case of Sweden," Energy Economics, Elsevier, vol. 133(C).
    3. John List & Ioannis Pragidis & Michael Price, 2024. "Toward an Understanding of the Economics of Prosumers: Evidence from a Natural Field Experiment in Energy," Natural Field Experiments 00791, The Field Experiments Website.
    4. Lia Marchi & Jacopo Gaspari, 2023. "Energy Conservation at Home: A Critical Review on the Role of End-User Behavior," Energies, MDPI, vol. 16(22), pages 1-22, November.
    5. Liu, Diyi & Zou, Hongyang & Qiu, Yueming & Du, Huibin, 2024. "Consumer reaction to green subsidy phase-out in China: Evidence from the household photovoltaic industry," Energy Economics, Elsevier, vol. 129(C).

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    More about this item

    Keywords

    Rebound effect; Solar panels; Electricity consumption; Renewable energy;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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