PV adoption: the role of distribution tariffs under net metering

[en] The deployment of decentralized productions units (DPU) like rooftop solar panels is a major challenge for a transition towards greener energy sources. Under a net metering system where the meter runs backward when there is excessive PV production, the electricity produced by a solar panel is valued at the retail price. Higher retail prices thus encourage the deployment of DPU. To identify this relationship, we use data from Wallonia where tariffs are paid on a mostly volumetric base and where there are 13 different tariff zones. Using various specifications, our results suggest that in a municipality where the distribution tariff is one eurocent per kWh higher, the investment in solar PV is, all else equal, around 8% higher.

Research center :

LCII - Liège Competition and Innovation Institute - ULiège

Disciplines :

Microeconomics

Author, co-author :

Gautier, Axel ; Université de Liège - ULiège > HEC Liège : UER > Economie industrielle

Jacqmin, Julien

Language :

English

Title :

PV adoption: the role of distribution tariffs under net metering

Publication date :

2020

Journal title :

Journal of Regulatory Economics

ISSN :

0922-680X

eISSN :

1573-0468

Publisher :

Kluwer Academic Publishers, Netherlands

Volume :

Pages :

53–73

Peer reviewed :

Peer Reviewed verified by ORBi

Funders :

DGO4- Région Wallonne

Available on ORBi :

since 17 June 2018

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