A recent study by Matthew E. Oliver from the Georgia Institute of Technology and his co-authors, Juan Moreno-Cruz from the University of Waterloo and Kenneth Gillingham from Yale University, delves into the solar rebound effect.
The “solar rebound effect” is a phenomenon where households with residential solar photovoltaic (PV) systems end up consuming more electricity in response to greater solar energy generation. This outcome arises because the cost savings from generating their own electricity lead to increased usage. A recent study by Matthew E. Oliver from the Georgia Institute of Technology and his co-authors, Juan Moreno-Cruz from the University of Waterloo and Kenneth Gillingham from Yale University, delves into this effect, providing crucial insights for policymakers and researchers.
The study, titled “Microeconomics of the Solar Rebound under Net Metering,” explores how different net metering policies influence the solar rebound effect. Net metering allows households to sell excess electricity generated by their solar panels back to the grid, often at the retail rate. This policy makes solar PV systems more financially attractive but also impacts household behavior.
This article was written with the assistance of Microsoft Copilot (Jan. 27, 2025) and edited by Georgia Tech EPIcenter’s Gilbert X. Gonzalez and Matthew E. Oliver.
Read the full paper: https://research.gatech.edu/solar-rebound-behavioral-economics-behind-increased-electricity-use