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Title: Deconstructing Solar Photovoltaic Pricing: The Role of Market Structure, Technology, and Policy

Abstract

Solar photovoltaic (PV) system prices in the United States display considerable heterogeneity both across geographic locations and within a given location. Such heterogeneity may arise due to state and federal policies, differences in market structure, and other factors that influence demand and costs. This paper examines the relative importance of such factors on equilibrium solar PV system prices in the United States using a detailed dataset of roughly 100,000 recent residential and small commercial installations. As expected, we find that PV system prices differ based on characteristics of the systems. More interestingly, we find evidence suggesting that search costs and imperfect competition affect solar PV pricing. Installer density substantially lowers prices, while regions with relatively generous financial incentives for solar PV are associated with higher prices.

Authors:
 [1];  [1];  [2];  [2];  [3];  [2];  [4];  [4]
  1. Yale Univ., New Haven, CT (United States)
  2. Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
  3. Univ. of Wisconsin, Madison, WI (United States)
  4. Univ. of Texas, Austin, TX (United States)
Publication Date:
Research Org.:
Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
Sponsoring Org.:
USDOE Office of Science (SC)
OSTI Identifier:
1166986
Report Number(s):
LBNL-6873E
DOE Contract Number:
AC02-05CH11231
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY, AND ECONOMY; 14 SOLAR ENERGY

Citation Formats

Gillingham, Kenneth, Deng, Hao, Wiser, Ryan, Darghouth, Naim, Nemet, Gregory, Barbose, Galen, Rai, Varun, and Dong, C. G. Deconstructing Solar Photovoltaic Pricing: The Role of Market Structure, Technology, and Policy. United States: N. p., 2014. Web. doi:10.2172/1166986.
Gillingham, Kenneth, Deng, Hao, Wiser, Ryan, Darghouth, Naim, Nemet, Gregory, Barbose, Galen, Rai, Varun, & Dong, C. G. Deconstructing Solar Photovoltaic Pricing: The Role of Market Structure, Technology, and Policy. United States. doi:10.2172/1166986.
Gillingham, Kenneth, Deng, Hao, Wiser, Ryan, Darghouth, Naim, Nemet, Gregory, Barbose, Galen, Rai, Varun, and Dong, C. G. 2014. "Deconstructing Solar Photovoltaic Pricing: The Role of Market Structure, Technology, and Policy". United States. doi:10.2172/1166986. https://www.osti.gov/servlets/purl/1166986.
@article{osti_1166986,
title = {Deconstructing Solar Photovoltaic Pricing: The Role of Market Structure, Technology, and Policy},
author = {Gillingham, Kenneth and Deng, Hao and Wiser, Ryan and Darghouth, Naim and Nemet, Gregory and Barbose, Galen and Rai, Varun and Dong, C. G.},
abstractNote = {Solar photovoltaic (PV) system prices in the United States display considerable heterogeneity both across geographic locations and within a given location. Such heterogeneity may arise due to state and federal policies, differences in market structure, and other factors that influence demand and costs. This paper examines the relative importance of such factors on equilibrium solar PV system prices in the United States using a detailed dataset of roughly 100,000 recent residential and small commercial installations. As expected, we find that PV system prices differ based on characteristics of the systems. More interestingly, we find evidence suggesting that search costs and imperfect competition affect solar PV pricing. Installer density substantially lowers prices, while regions with relatively generous financial incentives for solar PV are associated with higher prices.},
doi = {10.2172/1166986},
journal = {},
number = ,
volume = ,
place = {United States},
year = 2014,
month =
}

Technical Report:

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