Effect of Subsidies on Introducing Residential Photovoltaic Systems

Abstract

 The purpose of this study is to evaluate the effect of subsidies for residential photovoltaic systems on promoting the installation of the systems using a panel data analysis. The analysis is implemented in the prefectural level from FY2002 to FY2011, including the periods that the subsidies were not implemented. The results suggest that the subsidies show a statistically-significant effect for promoting the installation. However, it is also clarified that the price decline of residential photovoltaic systems is the most effective for promoting the installation, meaning that the effect is higher than that of the subsidies. It is due to the time and effort against the users for receiving the subsidies.