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Photovoltaics and the Solar Rebound

2022/09/19 by Manuel Frondel, Kathrin Kaestner, Stephan Sommer +1
Economics, Econometrics and Finance · Energy · Environmental Science · #Energy and Environment Impacts #Energy, Environment, Economic Growth #Energy, Environment, and Transportation Policies

paper · pdf · doi:10.3368/le.070621-0077r1

crossref issued 2022/09/19 · crossref published 2022/09/19 · crossref published-online 2022/09/19 · openalex publication_date 2022/09/19 · crossref created 2022/09/19 · crossref deposited 2023/03/30 · crossref published-print 2023/05/01 · openalex created_date 2025/10/10 · crossref indexed 2026/07/28 · openalex updated_date 2026/07/28

Abstract

<h3>Abstract</h3> 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 that is 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%.

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