@article{Durmaz:257879,
      recid = {257879},
      author = {Tunç Durmaz and Aude Pommeret and Ian Ridley},
      title = {Willingness to Pay for Solar Panels and Smart Grids},
      address = {6/14/2017},
      number = {839-2017-1174},
      series = {24.2017},
      pages = {27},
      year = {2017},
      abstract = {It is expected that the renewable share of energy  generation will rise considerably in the near future. The  intermittent and uncertain nature of renewable energy (RE)  calls for storage and grid management technologies that can  allow for increased power system flexibility. To assist  policy makers in designing public policies that incentivize  RE generation and a flexible power system based on energy  storage and demandside management, better knowledge as to  the willingness to pay for the corresponding devices is  required. In this paper, we appraise the willingness of a  household (HH) to pay for a 1.9 kW peak photovoltaic (PV)  system and smart grid devices, namely, a smart meter and a  home storage battery. Results indicate that having access  to a storage device is key for the HH decision to install a  smart meter. We also find that it is beneficial for the HH  to install the PV system regardless of the pricing scheme  and the ownership of the battery pack. It is, nevertheless,  barely desirable to install the battery pack regardless of  the presence of the PV system; an outcome pointing to the  fact that the high cost of storage is a drawback for the  wider use of these systems. When storage is constrained in  such a way that only the generated power can be stored, the  willingness to install the battery pack reduces even  further. The investment decisions made when legislation  prohibits net-metering are also analyzed.},
      url = {http://ageconsearch.umn.edu/record/257879},
      doi = {https://doi.org/10.22004/ag.econ.257879},
}