Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/235718 
Year of Publication: 
2021
Citation: 
[Journal:] Energy Policy [ISSN:] 0301-4215 [Volume:] 152 [Article No.:] 112168 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2021
Publisher: 
Elsevier, Amsterdam
Abstract: 
We analyze how tariff design incentivizes households to invest in residential photovoltaic and battery storage systems, and explore selected electricity sector effects. To this end, we develop an open-source electricity sector model that explicitly features prosumage agents and apply it to German 2030 scenarios. Results show that lower feed-in tariffs substantially reduce investments in residential photovoltaics, yet optimal battery sizing and self-generation are relatively robust. With increasing fixed parts of retail tariffs and, accordingly, lower volumetric retail rates for grid consumption, households have lower incentives for self-consumption. As a consequence, optimal battery capacities and self-generation are smaller, and households contribute more to non-energy power sector costs. A cap on hourly feed-in by households may relieve distribution grid stress without compromising PV expansion or prosumage models for households. When choosing tariff designs, policy makers should not aim to (dis-)incentivize prosumage as such, but balance effects on renewable capacity expansion and system cost contribution.
Subjects: 
Prosumage
Retail tariff
Feed-in tariff
Photovoltaics
Battery storage
Renewable energy
JEL: 
C61
Q41
Q42
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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