Solar PV installations influence neighboring households to go green

Researchers from the University of Passau and the University of Lausanne have found that the installation of a solar PV system can have a positive impact on the energy-related behavior of neighboring households. The study, which analyzed data from 260,000 Swiss households, found that neighboring households are more likely to install solar PV systems, adopt electric vehicles, and reduce their electricity consumption when a nearby household installs a solar PV system.

Methodology

The researchers used geocoded data to examine the relationship between solar PV installations and the energy-related behavior of neighboring households. They measured the density of nearby PV installations based on the distance between households and solar systems, allowing them to examine how changes in local PV adoption affected neighboring households' energy behavior.

Key findings

The study found that each additional household reduces their annual electricity consumption by 0.21% for each additional solar PV installation 100 meters away, corresponding to an average annual saving of around 11 kWh. The probability of solar PV adoption also increases by 0.02 percentage points for each additional solar PV installation 100 meters away from a household. The researchers also found that the probability of electric vehicle adoption increases by 0.01 percentage points for each additional solar PV installation 100 meters away from a household.

Implications for policy

The researchers suggest that policymakers should take local spillovers into account when assessing policies that encourage residential solar PV adoption. They argue that supporting one additional installation may not only benefit the household receiving the support but may also encourage pro-environmental behaviors among neighboring households. The researchers propose that information campaigns could be used to highlight solar adoption within neighborhoods and facilitate exchanges between households that have already installed PV systems and those considering doing so.

The study's findings are presented in the following table:

The researchers believe that their findings have implications for policymakers and could be used to inform policies that encourage the adoption of solar PV and electric vehicles. They suggest that leveraging social interactions and local social dynamics could be an effective way to encourage the uptake of solar PV and other pro-environmental behaviors.