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Photovoltaics and the Solar Rebound: Evidence from Germany

Author

Listed:
  • Manuel Frondel
  • Kathrin Kaestner
  • Stephan Sommer
  • Colin Vance

Abstract

Recent research suggests that households increase their electricity consumption after installing photovoltaic (PV) panels, a behavioral change commonly referred to as the solar rebound. Using panel data originating from the German Residential Energy Consumption Survey, we investigate the existence of a solar rebound effect. Our empirical results suggest that PV panel adoption does not change the amount of electricity that households take from the grid. As we derive theoretically, this implies a solar rebound bounded from above by about 50%, while back-of-the-envelope calculations suggest a lower bound of 12% and an average solar rebound of 35%.

Suggested Citation

  • Manuel Frondel & Kathrin Kaestner & Stephan Sommer & Colin Vance, 2023. "Photovoltaics and the Solar Rebound: Evidence from Germany," Land Economics, University of Wisconsin Press, vol. 99(2), pages 265-282.
    • Handle: RePEc:uwp:landec:v:99:y:2023:i:2:p:265-282
    Note: DOI: https://doi.org/10.3368/le.070621-0077R1
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    File URL: http://le.uwpress.org/cgi/reprint/99/2/265
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    Cited by:

    1. Marcin Olkiewicz & Joanna Alicja Dyczkowska & Anna Maria Olkiewicz, 2023. "Financial Aspects of Energy Investments in the Era of Shaping Stable Energy Development in Poland: A Case Study," Energies, MDPI, vol. 16(23), pages 1-21, November.

    More about this item

    JEL classification:

    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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