Details
| Original language | English |
|---|---|
| Article number | 106649 |
| Journal | Energy economics |
| Volume | 121 |
| Early online date | 6 Apr 2023 |
| Publication status | Published - May 2023 |
Abstract
Although Germany has the largest capacity of installed residential photovoltaic (PV) systems in Europe, comprehensive evidence on transparent pricing information remains missing. This study disentangles why PV quote prices are subject to significant dispersion and analyzes which factors influence particularly low- and high-priced systems in Germany. We create a comprehensive cross-sectional dataset of 19 561 PV system quotes from 2011 to 2022 and use regression analyses to investigate the effects of system characteristics, installation scope, and location-related parameters on quoted prices. Our results reveal highly volatile annual price dispersion consistent over 11 years and large price differences despite similar system characteristics. Applying hedonic regression techniques, we reveal spatially fine-resolved price heterogeneity with up to 20 % difference in the German PV market. System characteristics such as battery usage, installation scope, and system capacity have the most significant effect sizes and are instead control variables. More insightful, the installer density shows price-lowering effects, whereas more PV installations per region, higher solar radiation, and higher labor wages cause price-increasing effects. Quantile regression results reveal that installer density promotes the price reduction of high-priced systems more. Scaffolding, AC installation, and elevation are significant price-increasing factors but with small effect sizes. Finally, DC optimizers affect the levels of high-priced systems more than low-priced ones.
Keywords
- Hedonic model, Price dispersion, Quantile regression, Quote data, Residential solar PV
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
- Energy(all)
- General Energy
Sustainable Development Goals
Cite this
- Standard
- Harvard
- Apa
- Vancouver
- BibTeX
- RIS
In: Energy economics, Vol. 121, 106649, 05.2023.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Disentangle the price dispersion of residential solar photovoltaic systems
T2 - Evidence from Germany
AU - Kraschewski, Tobias
AU - Brauner, Tim
AU - Heumann, Maximilian
AU - Breitner, Michael H.
N1 - Funding Information: This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.
PY - 2023/5
Y1 - 2023/5
N2 - Although Germany has the largest capacity of installed residential photovoltaic (PV) systems in Europe, comprehensive evidence on transparent pricing information remains missing. This study disentangles why PV quote prices are subject to significant dispersion and analyzes which factors influence particularly low- and high-priced systems in Germany. We create a comprehensive cross-sectional dataset of 19 561 PV system quotes from 2011 to 2022 and use regression analyses to investigate the effects of system characteristics, installation scope, and location-related parameters on quoted prices. Our results reveal highly volatile annual price dispersion consistent over 11 years and large price differences despite similar system characteristics. Applying hedonic regression techniques, we reveal spatially fine-resolved price heterogeneity with up to 20 % difference in the German PV market. System characteristics such as battery usage, installation scope, and system capacity have the most significant effect sizes and are instead control variables. More insightful, the installer density shows price-lowering effects, whereas more PV installations per region, higher solar radiation, and higher labor wages cause price-increasing effects. Quantile regression results reveal that installer density promotes the price reduction of high-priced systems more. Scaffolding, AC installation, and elevation are significant price-increasing factors but with small effect sizes. Finally, DC optimizers affect the levels of high-priced systems more than low-priced ones.
AB - Although Germany has the largest capacity of installed residential photovoltaic (PV) systems in Europe, comprehensive evidence on transparent pricing information remains missing. This study disentangles why PV quote prices are subject to significant dispersion and analyzes which factors influence particularly low- and high-priced systems in Germany. We create a comprehensive cross-sectional dataset of 19 561 PV system quotes from 2011 to 2022 and use regression analyses to investigate the effects of system characteristics, installation scope, and location-related parameters on quoted prices. Our results reveal highly volatile annual price dispersion consistent over 11 years and large price differences despite similar system characteristics. Applying hedonic regression techniques, we reveal spatially fine-resolved price heterogeneity with up to 20 % difference in the German PV market. System characteristics such as battery usage, installation scope, and system capacity have the most significant effect sizes and are instead control variables. More insightful, the installer density shows price-lowering effects, whereas more PV installations per region, higher solar radiation, and higher labor wages cause price-increasing effects. Quantile regression results reveal that installer density promotes the price reduction of high-priced systems more. Scaffolding, AC installation, and elevation are significant price-increasing factors but with small effect sizes. Finally, DC optimizers affect the levels of high-priced systems more than low-priced ones.
KW - Hedonic model
KW - Price dispersion
KW - Quantile regression
KW - Quote data
KW - Residential solar PV
UR - http://www.scopus.com/inward/record.url?scp=85152945826&partnerID=8YFLogxK
U2 - 10.1016/j.eneco.2023.106649
DO - 10.1016/j.eneco.2023.106649
M3 - Article
AN - SCOPUS:85152945826
VL - 121
JO - Energy economics
JF - Energy economics
SN - 0140-9883
M1 - 106649
ER -