DEMAND FOR RESIDENTIAL SOLAR PHOTOVOLTAIC SYSTEMS: EVIDENCE FROM NOVA SCOTIA

Abstract

This thesis examines the demand for residential Solar Photovoltaic (SP) installations in Nova Scotia (NS) from 2016 to 2019. There has been no study that estimates the economic and demographic determinants of demand for SP systems in NS. Using a negative binomial logit hurdle model, I find that the installation cost of SP systems, provincial rebate rate available for homeowners, and median household income at the census dissemination area level have significant effects on the decision to install SP systems. The point estimate of the price elasticity demand for SP systems is -1.26, sufficiently high to suggest that the demand for the residential SP market is highly responsive to rebate and incentive policies.