Non-monotonic effects of market concentration on prices for residential solar photovoltaics in the United States
- Univ. of Wisconsin, Madison, WI (United States); National Renewable Energy Laboratory (NREL), Golden, CO (United States)
We report that emerging renewable energy markets may become more concentrated over time as the most efficient firms accumulate market share. The effects of this market concentration on prices are tested using a rich dataset of residential solar photovoltaic (PV) systems in the United States. A novel hypothesis is explored that the effects of market concentration may be non-monotonic. Prices may decline in market concentration due to efficiency gains associated with returns to scale but increase in concentration in already concentrated markets due to increasing market power. Finally, the results of an econometric model provide evidence to support the non-monotonic hypothesis. However, the data suggest that the relationship between prices and firm scale is nuanced, and that both large- and small-scale PV installers may wield efficiency advantages.
- 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:
- 1484341
- Alternate ID(s):
- OSTI ID: 1636171
- Report Number(s):
- NREL/JA-6A20-72645
- Journal Information:
- Energy Economics, Vol. 78, Issue C; ISSN 0140-9883
- Publisher:
- ElsevierCopyright Statement
- Country of Publication:
- United States
- Language:
- English
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