An evaluation of feed-in tariffs for promoting household solar energy adoption in Southeast Queensland, Australia. (February 2020)

• Record Type: Journal Article
• Authors: Lan, Haifeng; Cheng, Bin; Gou, Zhonghua; Yu, Rongrong
• Is Part Of: Sustainable cities and society. Volume 53(2020)
• Publication Date: 2020-02
• Subjects: ABS Australia Bureau of Statistics -- APVI Australia Photovoltaic Institute -- ARENA Australia Renewable Energy Agency -- DECC Department of Energy and Climate Change -- FERC Federal Energy Regulatory Commission -- FiT Feed-in tariff -- POA Postcode Area -- PV Photovoltaics -- QCA Queensland Competition Authority -- ROI Return on Investment -- RPS Renewable Portfolio Standard -- SBS Solar Bonus Scheme -- SDM Spatial Durbin Model -- SEM Spatial Error Model -- SLM Spatial Autoregressive Model -- ZNB Zero-inflated Negative Binomial -- LR Likelihood-ratio; Household solar energy -- Feed-in tariffs -- Spatial dynamic panel model -- Policy evaluation -- Australia; Sustainable urban development -- Periodicals; Sustainable buildings -- Periodicals; Urban ecology (Sociology) -- Periodicals; 307.76
• DOI: 10.1016/j.scs.2019.101942
• Languages: English
• ISSNs: 2210-6707

Abstract

Highlights: FiT policies for residential PV systems in Southeast Queensland were evaluated. A rigorous spatial econometric model was introduced for the evaluation. The residential PV adoption was highly correlated with the change of FiT policies. Spatial autocorrelation and time lag were found for the installation. Differentiated FiT policies are suggested to promote energy justice. Abstract: Solar feed-in tariffs (FiTs) aim to incentivise electricity generation through Photovoltaics (PV) systems and to promote household solar panel adoption. Previous studies assessed the effectiveness of FiT policies using descriptive statistical methods, without considering the temporal and spatial effects of households' responses to FiT policies. This paper applied a rigorous spatial econometric analysis model for the first time to evaluate the effectiveness of Australia's household solar energy FiT policies, using the data from 177 postcodes of Southeast Queensland during the period from 2007 to 2018. Based on time lag and spatial autocorrelation analyses plus likelihood-ratio and Hausman tests, a fixed effect dynamic spatial lag model was selected for the evaluation. The results confirmed that the installation of household solar panels was highly correlated with the change of FiT policies. Installation of solar panels is an investment behaviour which is not only based on a rational interpretation of policies, but also influenced by the neighbourhood peer effect and market speculation. These factors should be considered to formulate more effective FiT policies.