The Residential Solar PV in the Mid-Atlantic: A Spatial Panel Approach

Oleg Kucher, Donald Lacombe, Sean T. Davidson

Research output: Contribution to journalArticlepeer-review

7 Scopus citations


This study examines residential solar photovoltaic (PV) adoption in mid-Atlantic counties over the 2005–2016 period. Using a spatial Durbin panel model, we find significant spatial dependence in residential solar PV adoption at the county level. In the presence of spatial dependence, major determinants of the solar adoptions are electricity rates and solar-related policy regulation. The combined direct and indirect effect of electricity rates on solar PV capacity is 5.37 percent increase for a 1 percent increase in electricity price. This spatial coefficient estimate is about twice as large as corresponding panel estimates. We also find that the regulation and incentives significantly boost solar PV demand, which explains about 38 percent variation in residential solar capacity.

Original languageEnglish
Pages (from-to)262-288
Number of pages27
JournalInternational Regional Science Review
Issue number2
StatePublished - Mar 2021


  • electricity rates
  • residential solar PV capacity
  • spatial panel


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