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Prosumage of Solar Electricity: Pros, Cons, and the System Perspective

36 Pages Posted: 7 Feb 2017  

Wolf-Peter Schill

German Institute for Economic Research (DIW Berlin)

Alexander Zerrahn

German Institute for Economic Research (DIW Berlin)

Friedrich Kunz

German Institute for Economic Research (DIW Berlin)

Date Written: January 2017

Abstract

We examine the role of prosumage of solar electricity, i.e. PV self-generation combined with distributed storage, in the context of the low-carbon energy transformation. First, we devise a qualitative account of arguments in favor of and against prosumage. Second, we give an overview of prosumage in Germany. Prosumage will likely gain momentum as support payments expire for an increasing share of PV capacities after 2020. Third, we model possible system effects in a German2035 scenario. Prosumage batteries allow for a notable substitution of other storage facilities only if fully available for market interactions. System-friendly operation would also help limiting cost.

Keywords: Prosumage, battery storage, PV, energy transformation, DIETER

JEL Classification: C61, Q42, Q48

Suggested Citation

Schill, Wolf-Peter and Zerrahn, Alexander and Kunz, Friedrich, Prosumage of Solar Electricity: Pros, Cons, and the System Perspective (January 2017). DIW Berlin Discussion Paper No. 1637. Available at SSRN: https://ssrn.com/abstract=2912814 or http://dx.doi.org/10.2139/ssrn.2912814

Wolf-Peter Schill (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Alexander Zerrahn

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Friedrich Kunz

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

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