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Rooftop solar incentives remain effective for low- and moderate-income adoption

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  • O'Shaughnessy, Eric

Abstract

Financial incentives for rooftop solar photovoltaic (PV) adoption have declined in the United States over time by policy design. Incentive phase-down can efficiently promote early adoption and avoid ineffective payments to late adopters. However, incentive phase-down may exclude low- and moderate-income (LMI) households from realizing the same financial benefits from PV adoption as high-income early adopters. Here, data from two state-level LMI PV incentive programs are analyzed to test whether incentives still drive PV adoption among LMI households. As a first order approximation, the analysis suggests that incentives drove adoption that would not otherwise have happened in about 80% of cases. To the extent that policymakers prioritize PV adoption equity as part of the emerging energy justice policy agenda, the results suggest that ongoing incentive support for LMI adoption may be merited.

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  • O'Shaughnessy, Eric, 2022. "Rooftop solar incentives remain effective for low- and moderate-income adoption," Energy Policy, Elsevier, vol. 163(C).
    • Handle: RePEc:eee:enepol:v:163:y:2022:i:c:s0301421522001069
    DOI: 10.1016/j.enpol.2022.112881
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    1. Best, Rohan & Burke, Paul J., 2023. "Small-scale solar panel adoption by the non-residential sector: The effects of national and targeted policies in Australia," Economic Modelling, Elsevier, vol. 120(C).
    2. Lemay, Amélie C. & Wagner, Sigurd & Rand, Barry P., 2023. "Current status and future potential of rooftop solar adoption in the United States," Energy Policy, Elsevier, vol. 177(C).
    3. Kapsalis, Vasileios & Maduta, Carmen & Skandalos, Nikolaos & Wang, Meng & Bhuvad, Sushant Suresh & D'Agostino, Delia & Ma, Tao & Raj, Uday & Parker, Danny & Peng, Jinqing & Karamanis, Dimitris, 2024. "Critical assessment of large-scale rooftop photovoltaics deployment in the global urban environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).

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