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Title: Rules of the rooftop: Platform design and price reductions in an online solar photovoltaic marketplace in the United States

Journal Article · · Energy Research and Social Science
 [1];  [1];  [2];  [3]
  1. Univ. of Texas, Austin, TX (United States)
  2. National Renewable Energy Lab. (NREL), Golden, CO (United States); Univ. of Wisconsin, Madison, WI (United States)
  3. National Renewable Energy Lab. (NREL), Golden, CO (United States)
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Residential solar photovoltaic (PV) customers typically obtain price quotes directly from installers, a process with high consumer search costs that enable price dispersion and can discourage adoption. Recently, however, customers are increasingly shopping for PV using third-party online platforms that make it easier to obtain and compare quotes from multiple installers. While early evidence indicates that these platforms make the PV market more transparent and lower prices, the literature suggests that market outcomes are critically linked to detailed aspects of platform design. In this study, we econometrically analyze a unique dataset of quotes offered in the online PV marketplace EnergySage to investigate how four changes to the platform design have influenced quote prices and transaction prices. We find that the largest reductions in quote prices ($0.11/ W) and transaction prices ($0.15/W) were associated with the introduction of a price guidance information feature for installers. While educating and informing customers has repeatedly emerged as a policy priority for bolstering PV markets, these results suggest that the same should be true on the supply side. We also find that customers are willing to pay higher transaction prices for systems with higher-quality panels, dispelling concerns that online PV marketplaces lead to a 'race to the bottom' phenomenon by emphasizing price at the expense of quality.

Research Organization:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Organization:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Solar Energy Technologies Office
Grant/Contract Number:
AC36-08GO28308
OSTI ID:
1482897
Report Number(s):
NREL/JA-6A20-72194
Journal Information:
Energy Research and Social Science, Vol. 48, Issue C; ISSN 2214-6296
Publisher:
ElsevierCopyright Statement
Country of Publication:
United States
Language:
English

Figures / Tables (9)

Figure 1(p. 5)figure Figure 1
Table 1(p. 7)table Table 1
Figure 2(p. 8)figure Figure 2
Figure 3(p. 12)figure Figure 3
Table 2(p. 15)table Table 2
Table 3(p. 19)table Table 3
Table 4(p. 22)table Table 4
Table 5(p. 23)table Table 5
Figure 4(p. 26)figure Figure 4

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14 SOLAR ENERGY
29 ENERGY PLANNING, POLICY, AND ECONOMY
solar energy
pricing
platform design
consumer search