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Land Economics

Photovoltaics and the Solar Rebound: Evidence from Germany

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 (GRECS), 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%.

Frondel, M., K. Kaestner, S. Sommer und C. Vance Ph.D. (2023), Photovoltaics and the Solar Rebound: Evidence from Germany. Land Economics, 99, 2, 265-282

DOI: 10.3368/le.070621-0077R1