Choosing Both/and: Encouraging Green Energy Purchases In Community Choice Aggregation

Abstract

Community Choice Aggregation (CCA) programs offer green electricity products to satisfy customers' demand for renewable energy. However, it is not clear how consumers approach combining renewable procurement options, such as installing rooftop solar and subscribing to green electricity. This study estimates the probability that residential CCA customers choose to purchase green energy at a price premium when they have already adopted (1) rooftop solar, (2) non-solar distributed energy resources such as electric vehicles, and (3) a time-varying electric rate. Based on residential customer data from Silicon Valley Clean Energy, a CCA in California, we fit a multi-level probit model that accounts for the potential clustering of green participation rates at the zip code level. Our findings suggest that households with installed solar panels, electric vehicles, time-varying electric rates, and lower energy consumption are more likely to purchase green electricity. Ultimately, this study provides insight into strategies for incentivizing consumers to combine green energy options to achieve broader goals related to climate change and grid resilience.

Department(s)

Economics

Second Department

Engineering Management and Systems Engineering

Comments

Alfred P. Sloan Foundation, Grant G-2020-13916

Keywords and Phrases

California; Electric vehicles; Multi-level modeling; Photovoltaics; Probit model; Renewable energy

International Standard Serial Number (ISSN)

0301-4215

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2024 Elsevier, All rights reserved.

Publication Date

01 Feb 2024

Link to Full Text

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