@article {Frondel070621-0077R1, author = {Manuel Frondel and Kathrin Kaestner and Stephan Sommer and Colin Vance}, title = {Photovoltaics and the Solar Rebound: Evidence from Germany}, elocation-id = {070621-0077R1}, year = {2022}, doi = {10.3368/le.070621-0077R1}, publisher = {University of Wisconsin Press}, abstract = {Recent research suggests that households increase their electricity consumption after installing photovoltaic (PV) panels, a behavioral change commonly referred to as the solar rebound. Using panel data originating from the German Residential Energy Consumption Survey (GRECS), we investigate the existence of a solar rebound effect. Our empirical results suggest that PV panel adoption does not change the amount of electricity that households take from the grid. As we derive theoretically, this implies a solar rebound that is bounded from above by about 50\%, while back-of-the-envelope calculations suggest a lower bound of 12\% and an average solar rebound of 35\%.}, issn = {0023-7639}, URL = {https://le.uwpress.org/content/early/2022/09/14/le.070621-0077R1}, eprint = {https://le.uwpress.org/content/early/2022/09/14/le.070621-0077R1.full.pdf}, journal = {Land Economics} }