Recent research suggests that households increase their electricity con-sumption after installing photovoltaic (PV) panels, a behavioral change commonly re-ferred to as the solar rebound. Using panel data originating from the German Residential Energy Consumption Survey, we investigate the existence of a solar rebound effect. Our empirical results suggest that PV panel adop-tion does not change the amount of electricity that households take from the grid. As we de-rive theoretically, this implies a solar rebound bounded from above by about 50%, while back-of-the-envelope calculations suggest a lower bound of 12% and an average solar re-bound of 35%.
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