Triple Effect Economics: How Do Electric Vehicles, Solar Photovoltaics, and Work-from-Home Transform Household Electricity Cost?

Solutions for deep decarbonization need to be affordable as well as sustainable to garner widespread adoption. The past two decades have seen the introduction of new technologies and paradigms such as electric vehicles (EVs), solar photovoltaics (PVs), and increased work-from-home (WFH), which impact a household's overall energy consumption and cost in different ways. However, much attention has not been paid to explore the joint impact these technologies have on a household's electricity cost burden. Leveraging the 2020 Residential Energy Consumption Survey (RECS), this study presents an integrated model to unravel the extent to which the bundled adoption of EV-PV and stay-at-home decisions impact the total electricity cost of households. National level RECS data revealed that, compared to the baseline (i.e., households that did not own any of these technologies), households that own EVs, PVs, and engage in WFH observed a 13.5% decline in their electricity bills, despite a 25% increase in electricity consumption. The model results indicated that bundled adoption of EVs-PVs reduces electricity costs more significantly for a household, compared to the increased costs imposed by more household members staying at home. This holistic assessment presents an opportunity for decision makers to contextualize the changing energy costs and design effective strategies to foster a sustainable and cost saving mechanism. Policies such as bundled incentivization to motivate co-adoption, education about energy-management strategies, and add-on subsidies to adopt energy-efficient appliances, will not only accelerate decarbonization but increase household financial savings.