Demand correlation and PV solar panel investment

The globe is entering an age of electricity, with renewable sources at the forefront of growth in investment in the transition. This study takes a novel step by theoretically and empirically contributing to our understanding of how investment in residential solar photovoltaics (PV) increases with demand correlation, and the extent to which this relationship is shaped by demand uncertainty. We bring together a unique dataset of relevant information about solar PV investment and electricity demand in GB between 2015 and 2020. This allows us to test our theoretical predictions and empirically show that (i) households invest more when demand correlation increases and that (ii) this relationship is amplified when demand is uncertain.