Incentive pass-through for residential solar systems in California

Dong, Changgui; Wiser, Ryan; Rai, Varun

doi:10.1016/j.eneco.2018.04.014

Cited by 29 publications

(12 citation statements)

References 55 publications

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“…Another study, Dong et al (2014), examined incentive pass-through -i.e., the degree to which installers pass through the value of incentives to consumers -in California's statewide rebate programs. This analysis included two wholly distinct modeling approaches, and in both cases found average pass-through rates ranging from 95% to 99%.…”

Section: Text Box 4 Findings From Recent In-depth Analyses Of Pv Primentioning

confidence: 99%

Tracking the Sun IX: The Installed Price of Residential and Non-Residential Photovoltaic Systems in the United States

Barbose

Darghouth

Millstein

et al. 2016

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Executive SummaryNow in its ninth edition, Lawrence Berkeley National Laboratory (LBNL)'s Tracking the Sun report series is dedicated to summarizing trends in the installed price of grid-connected solar photovoltaic (PV) systems in the United States. The present report focuses on residential and non-residential systems installed through year-end 2015, with preliminary trends for the first half of 2016. An accompanying LBNL report, Utility-Scale Solar, addresses trends in the utility-scale sector. This year's report incorporates a number of important changes and enhancements from prior editions. Among those changes, LBNL has made available a public data file containing all non-confidential project-level data underlying the analysis in this report. 1 Installed pricing trends presented within this report derive primarily from project-level data reported to state agencies and utilities that administer PV incentive programs, solar renewable energy credit (SREC) registration systems, or interconnection processes. Refer to the text box to the right for several key notes about these data. In total, data were collected and cleaned for more than 820,000 individual PV systems, representing 85% of U.S. residential and non-residential PV systems installed cumulatively through 2015 and 82% of systems installed in 2015. The analysis in this report is based on a subset of this sample, consisting of roughly 450,000 systems with available installed price data.Key findings from this year's report are as follows, with all numerical results denoted in real 2015 dollars and direct current (DC) Watts (W):Installed Prices Continued to Decline through 2015 and into 2016. National median installed prices in 2015 declined year-over-year by $0.2/W (5%) for residential systems, by $0.3/W (7%) for non-residential systems ≤500 kW, and by $0.3/W (9%) for non-residential systems >500 kW. This continues the steady downward trend in PV system pricing, though the pace of decline is somewhat slower than in recent years. Preliminary data for the first half of 2016 show a mixed picture, but generally suggest that installed prices have continued to fall at a modest pace, at least within a number of key states and market segments. The slowing rate of decline may partly reflect a number of confounding factors could be offsetting underlying cost reductions. These include, for example, the increasing prevalence of solar loans with origination fees embedded in the installed price, greater use of module-level power electronics, module import tariffs, and a shift in the underlying geographical mix of the data sample towards more-expensive states (e.g., California). Recent Installed Price Reductions Key Points on the Data in This ReportThe installed price data analyzed in this report:• Represent the up-front price paid by the PV system owner, prior to receipt of incentives• Are self-reported by PV installers and host customers• Differ from the underlying cost borne by the developer and installer• Are historical and therefore may not be indicative of price...

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Section: Text Box 4 Findings From Recent In-depth Analyses Of Pv Primentioning

confidence: 99%

Tracking the Sun IX: The Installed Price of Residential and Non-Residential Photovoltaic Systems in the United States

Barbose

Darghouth

Millstein

et al. 2016

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“…Two pieces of evidence support the theory that bill savings and subsidies affect installer strategies in this way. First, multiple studies find that installers indeed "pass through" subsidies to customers (Pless and van Benthem 2017;Dong, Wiser, and Rai 2018). The fact that installers do not keep the subsidies for themselves suggests installers prioritize market share over profit margins.…”

Section: Supported 5 Discussion and Conclusionmentioning

confidence: 99%

State and Local Policy Impacts on the Residential Solar PV Installation Industry

O’Shaughnessy

2019

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“…Moreover, these estimates based on California data vary widely. For example, Henwood () found a low pass‐through rate, while Dong, Wiser, and Rai () and Pless and van Benthem () found nearly complete pass‐through. These working papers use similar data, but very different empirical strategies.…”

Section: Policy Analysismentioning

confidence: 99%

Hurdles and steps: Estimating demand for solar photovoltaics

Gillingham¹,

Tsvetanov

2019

Quantitative Economics

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This paper estimates demand for residential solar photovoltaic (PV) systems using a new approach to address three empirical challenges that often arise with count data: excess zeros, unobserved heterogeneity, and endogeneity of price. Our results imply a price elasticity of demand for solar PV systems of −0 65. Counterfactual policy simulations indicate that reducing state financial incentives in half would have led to 9% fewer new installations in Connecticut in 2014. Calculations suggest a subsidy program cost of $364/tCO 2 assuming solar displaces natural gas. Our Poisson hurdle approach holds promise for modeling the demand for many new technologies. numerous seminar audiences for helpful discussions. Finally, we acknowledge funding from US Department of Energy award This calculation is made based on an average system price in 2008-2014 in CT of $36,607, average state rebate amount of $10,288, and tax credit (taken post-incentive) of $7896 for consumers with at least this much tax burden (all in 2014 dollars).

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Incentive pass-through for residential solar systems in California

Cited by 29 publications

References 55 publications

Tracking the Sun IX: The Installed Price of Residential and Non-Residential Photovoltaic Systems in the United States

Tracking the Sun IX: The Installed Price of Residential and Non-Residential Photovoltaic Systems in the United States

State and Local Policy Impacts on the Residential Solar PV Installation Industry

Hurdles and steps: Estimating demand for solar photovoltaics

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