Mechanisms for Rebound Effects of Solar Electricity Prosuming in Germany

38 Pages Posted: 13 Feb 2024

See all articles by Ayse Tugba Atasoy

Ayse Tugba Atasoy

RWTH Aachen University - Institute for Future Energy Consumer Needs and Behavior (FCN)

Hendrik Schmitz

RWTH Aachen University - Institute for Future Energy Consumer Needs and Behavior (FCN)

Reinhard Madlener

RWTH Aachen University; Norwegian University of Science and Technology (NTNU) - Department of Industrial Economics and Technology Management

Date Written: October 1, 2021

Abstract

Private households adopting solar photovoltaic panels can reduce their average electricity unit costs either by feeding the self-generated amount of electricity into the grid or by self-consuming it, or a combination of the two. Due to the achievable cost savings on the electricity bill and changes in consumer behavior and attitudes, rebound effects in solar prosuming can occur, leading to higher electricity consumption than otherwise. We estimate the solar rebound effects using a representative sample for Germany. Utilizing a propensity score matching approach, we show that the initial differences in electricity consumption are eliminated when comparing households which are similar in characteristics that help to explain electricity consumption, but differ in the binary adoption of solar panels. By using different regression specifications and sets of covariates, we differentiate also empirically between the distinct mechanisms that explain rebound effects in the context of solar prosuming. We find that the variation in rebound effects are mainly induced by the changes in the incentives to feed-in or self-consume the generated electricity.

Keywords: Rebound Effects, Propensity Score Matching, Residential Energy, Electricity Consumption, Solar Photovoltaics, Germany

JEL Classification: D01, D04, D10, D40, Q42, Q48

Suggested Citation

Atasoy, Ayse Tugba and Schmitz, Hendrik and Madlener, Reinhard, Mechanisms for Rebound Effects of Solar Electricity Prosuming in Germany (October 1, 2021). Available at SSRN: https://ssrn.com/abstract=4706396 or http://dx.doi.org/10.2139/ssrn.4706396

Ayse Tugba Atasoy

RWTH Aachen University - Institute for Future Energy Consumer Needs and Behavior (FCN) ( email )

Mathieustrasse 6
Aachen, 52074
Germany

Hendrik Schmitz

RWTH Aachen University - Institute for Future Energy Consumer Needs and Behavior (FCN) ( email )

Mathieustrasse 6
Aachen, 52074
Germany
+49 241 80 49834 (Phone)
+49 241 80 49829 (Fax)

HOME PAGE: http://www.fcn.eonerc.rwth-aachen.de/cms/~dndh/E-ON-ERC-FCN/

Norwegian University of Science and Technology (NTNU) - Department of Industrial Economics and Technology Management ( email )

HOME PAGE: http://https://www.ntnu.edu/employees/reinhard.madlener

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