We test whether prosumers change their electricity consumption behavior after the installation of solar photovoltaic panels. Based on a large sample of residential PV installation in Wallonia, the answer is positive and we observe a significant consumption increase after the installation of the PV modules. There are two institutional features that make the Walloon region particularly interesting to study a possible rebound effect. First, the region had a generous subsidizing scheme for PV, which encouraged households to install large panels and, second, the region used net metering which fostered additional consumption. We observe in our data and estimations, that a large proportion of households oversize their installation to benefit from the subsidies and, later consume most of their excess production. The effect is highly significant and production surpluses are almost entirely consumed.

This seminar has been jointly organized by FEEM and IEFE, Bocconi University.