The impact of the electricity tariff reform on renewable energies and energy efficiency investments: The case of the Italian residential market

Abstract

ABSTRACTThis article investigates the impact that the electricity tariff reform is likely to have on investments in renewable energies (i.e., photovoltaics) and the adoption of energy efficiency measures (i.e., installation of heat pumps and efficient home appliances) in the residential market in Italy. The study develops detailed cost comparisons and simulations considering two different investment scenarios (before and after the reform) to conclude that the reform will: (i) have a negative impact on investments in photovoltaic systems; (ii) favor the adoption of energy efficiency measures, such as efficient home appliances.