Modeling residential adoption of solar energy in the Arabian Gulf Region

Abstract

Abstract We present an agent-based model for residential model adoption of solar photovoltaic (PV) systems in the state of Qatar as a case study for the Arabian Gulf Region. Agents in the model are defined as households. The objective of the model is to evaluate PV adoption across households under diverse regulatory and incentive scenarios determined by home ownership status, the falling cost of PV, the reduction of electricity subsidies, the introduction of a carbon tax, and the diffusion of renewable energy innovation. Our study suggests that Qatar's residential PV adoption is strongly promoted by the falling cost of PV and can be further facilitated through the reduction of electricity subsidies and the extension of the electricity tariff to Qatari households, which are currently exempt. The introduction of a carbon tax can also play a role in accelerating residential PV adoption, if above $8 per metric ton of carbon dioxide equivalent. The ensuing PV adoption rates would help facilitate the national targets of 2% electricity production from solar energy by 2020 and 20% by 2030.