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The deployment of decentralized productions units (DPU) like rooftop solar panels is a major challenge for energy transition. Under a net metering system where the meter runs backward when there is excessive PV production, the electricity produced is valued at the retail price. Higher retail prices thus encourage the deployment of DPU.
In this paper, we study the impact of tariffs on the decision to install residential solar PV installations. We analyze a panel data from Wallonia, where tariffs depend largely from volumetric charges. We exploit the presence of 13 different grid operators with different tariffs, to disentangle this relationship. Using various specifications, our results suggest that a one eurocent per kWh of tariff increase leads to, all else equal, an increase of around 5% in the number of new installations.
