The Value of Price Transparency in Residential Solar Photovoltaic Markets

Eric O'Shaughnessy, Robert Margolis

Research output: Contribution to journalArticlepeer-review

16 Scopus Citations


Installed prices for residential solar photovoltaic (PV) systems have declined significantly in recent years. However price dispersion and limited customer access to PV quotes prevents some prospective customers from obtaining low price offers. This study shows that improved customer access to prices – also known as price transparency – is a potential policy lever for further PV price reductions. We use customer search and strategic pricing theory to show that PV installation companies face incentives to offer lower prices in markets with more price transparency. We test this theoretical framework using a unique residential PV quote dataset. Our results show that installers offer lower prices to customers that are expected to receive more quotes. Our study provides a rationale for policies to improve price transparency in residential PV markets.

Original languageAmerican English
Pages (from-to)406-412
Number of pages7
JournalEnergy Policy
StatePublished - Jun 2018

Bibliographical note

Publisher Copyright:
© 2018 Elsevier Ltd

NREL Publication Number

  • NREL/JA-6A20-70800


  • Competition
  • Installers
  • Price transparency
  • Prices
  • Quotes
  • Solar PV


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