Valuing technology complementarities : rooftop solar and energy storage

Bryan Bollinger, Naïm R. Darghouth, Kenneth T. Gillingham, Andres Gonzalez-Lira

Product complementarities can shape market patterns, influencing the demand for related products and their accessories. This study examines complementarities in the demand for rooftop solar and an accessory, battery energy storage. Using nationwide administrative data, we estimate a dynamic nested-logit model of solar and storage adoption. We quantify the demand complementarity between solar and storage, and find that if storage was not available, 20% of households who coadopt solar and storage would not adopt anything. We find that the demand for solar and storage bundles increases with power outages, with a larger effect in California.

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Year of publication:	December 2023
Authors:	Bollinger, Bryan ; Darghouth, Naïm R. ; Gillingham, Kenneth ; Gonzalez Lira, Andres
Publisher:	Munich, Germany : CESifo
Subject:	product complementarity \| electricity resilience \| demand estimation \| new technology \| Sonnenenergie \| Solar energy \| Photovoltaik \| Photovoltaics \| Solartechnik \| Solar technology \| Technischer Fortschritt \| Technological change