Economics Seminar - Determinants of Residential Solar Development in the United States

Recent growth in the number of residential solar installations in the United States has been aided by declining component costs, growing environmental concerns, and increased government incentives. Yet, a debate still surrounds the efficacy and equity of residential solar installation. Using the DeepSolar database on US residential solar installations and a hurdle model specification, the empirical evidence suggests that government incentives have a positive impact on residential solar development and that more residential solar adoption occurs in US counties with a larger proportion of middle-class households. Thus, solar incentives may be more effective and equitable than previously thought.