Early adopters of residential solar PV distributed generation: Evidence from Brazil, Chile and Mexico

Abstract

Substantial adoption of solar rooftop systems in the residential sector resulting from the implementation of net metering policies can lead to worsening socioeconomic inequalities. This is because of the lack of information on the socioeconomic profiles of distributed solar generators. To fill this information gap and shed light on the determinants of solar photovoltaic distributed generation uptake, this paper aims to identify the profile of the first adopters of solar PV distributed generation by merging different databases. Using multilevel regression analysis, this study investigates how socioeconomic factors, project viability, and neighborhood variables, matter for adopting solar PV distributed generation in Brazil, Chile, and Mexico. Results differ across countries, as institutional frameworks matter. In Brazil, adopters live in urban areas and are highly responsive to solar energy potential. In Chile, the size of the project matters. Finally, in Mexico, results show that demonstration effects play a crucial role in adoption. Income as a determining factor is inconclusive. Average spending on electricity matters in all countries. This study highlights the existence of heterogeneity in the distribution of solar distributed generators. To mitigate these distortions, this work suggests some recommendations to improve solar distribution net metering policies in Brazil, Chile, and Mexico.