AbstractUsing high-frequency data, I show that the supply of electricity by solar households can be downward sloping.

Journal of the Association of Environmental and Resource Economists

AbstractUsing high-frequency data, I show that the supply of electricity by solar households can be downward sloping. I document that households receiving higher prices to sell electricity increase their own consumption as their panels produce more, relative to households receiving lower prices. I test several competing explanations and show that a dollar of electricity income increases electricity expenditures by 23 cents, an effect much larger than a standard income response. The fact that solar households treat income from electricity production as “electricity money” means that production subsidies may decrease the supply of electricity by solar homes.

AbstractUsing high-frequency data, I show that the supply of electricity by solar households can be downward sloping.

Power From the People: Rooftop Solar and a Downward-Sloping Supply of Electricity