19 June 2014: Under its Renewable Energy Technology Deployment (RETD) Implementing Agreement, the International Energy Agency (IEA) has published an in-depth analysis of the solar photovoltaic (PV) “prosumers” movement, reviewing the challenges, risks and advantages associated with the widespread adoption of residential PV.

According to IEA-RETD, prosumers often adopt PV systems because producing their own electricity can be more cost-effective than purchasing it from the grid. However, in many instances that cost-effectiveness is driven by supporting policies. The report, titled ‘Residential Prosumers – Drivers and Policy Options (Re -Prosumers),’ provides policymakers with an overview of the drivers of adoption of residential PV and considers strategies for achieving PV policy goals.

The report finds that a prosumer revolution is not here yet, but could emerge within ten years in some countries, given strong growth in the sector. This growth has been driven by a number of factors, which vary by country. In general, they include: decreasing PV system costs; the expected rise in residential rates; insolation; the ability to achieve high self-consumption ratios; consumer awareness and values; the rise of better battery technologies and electric vehicles; and national conditions such as adequate roof space, infrastructure and energy demand.

After identifying the key stakeholders, the report describes both the benefits and risks, including financial and technical, associated with promoting the rise of prosumers and PV through policy. The report urges policymakers to consider the local drivers and pros and cons as laid out in the report before developing and implementing a strategic prosumer policy framework. [IEA-RETD Publication Webpage] [Publication: Residential Prosumers – Drivers and Policy Options (Re -Prosumers)]