Deploying solar photovoltaic through subsidies: An Australian case
Year: 2024
Type: article
Abstract: Australia has garnered significant recognition for its leadership in residential solar energy adoption, driven by incentive programs like the Feed-in Tariff and the Small-Scale Renewable Energy Scheme. Yet limited research has evaluated the policy's effects on residential solar photovoltaics in Australia. We thus examine how Feed-in tariff policies and different policy packages affect residential solar PV adoption using the quarterly data from July 2009 to June 2022. The benchmark results uncover that high Feed-in tariff rates, long-term contracts, and gross Feed-in tariff schemes substantially drive solar adoption in Australia. Still, the observed adverse relationship between cost and installed capacity highlights that upfront Small-Scale Renewable Energy Scheme subsidies effectively promote solar power. Our estimates may provide valuable implications for accelerating solar photovoltaic adoption and achieving renewable energy transitions in Australia. • Feed-in tariffs significantly boost residential solar panel adoption across Australia. • Subsidies under the Small-Scale Renewable Energy Scheme promoted solar deployment. • System GMM and 2SLS approaches mitigate endogeneity concerns in policy evaluation. • Market familiarity reinforces adoption, creating a cycle of solar uptake. • Combining upfront and ongoing subsidies effectively drives residential solar growth.
Institution: University of Auckland
Language: English
Field: Energy
Domain: Physical Sciences
Open Access status: hybrid
Estimated APC paid: $3,850
OpenAlex ID: W4404523185