Using Residential Solar PV Quote Data to Analyze the Relationship Between Installer Pricing and Firm Size
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
The vast majority of U.S. residential solar PV installers are small local-scale companies, however the industry is relatively concentrated in a few large national-scale installers. We develop a novel approach using solar PV quote data to study the price behavior of large solar PV installers in the United States. Through a paired differences approach, we find that large installer quotes are about higher, on average, than non-large installer quotes made to the same customer. The difference is statistically significant and robust after controlling for factors such as system size, equipment quality, and time effects. The results suggest that low prices are not the primary value proposition of large installer systems. We explore several hypotheses for this finding, including that large installers are able to exercise some market power and/or earn returns from reputations.
- 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
- DOE Contract Number:
- AC36-08GO28308
- OSTI ID:
- 1351942
- Report Number(s):
- NREL/TP-6A20-68010
- Country of Publication:
- United States
- Language:
- English
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