Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Residential solar photovoltaics generate “green” electricity but may also lead to an increase in household electricity consumption—a phenomenon termed the “solar rebound effect.” This study develops a theoretical framework for understanding the solar rebound. We show that the solar rebound is inherently linked to the net-metering compensation a household faces. While the solar rebound is often simply a pure income effect, it can also include a substitution effect in some policy contexts. A negative solar rebound is even possible. We derive the welfare effects of the solar rebound and provide insights for econometric estimation.