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ABSTRACT
This article investigates the impact that the electricity tariff reform is likely to have on investments in renewable energies (i.e., photovoltaics) and the adoption of energy efficiency measures (i.e., installation of heat pumps and efficient home appliances) in the residential market in Italy. The study develops detailed cost comparisons and simulations considering two different investment scenarios (before and after the reform) to conclude that the reform will: (i) have a negative impact on investments in photovoltaic systems; (ii) favor the adoption of energy efficiency measures, such as efficient home appliances.
Notes
1 For clarity, according to Italian legislation, the residential electricity market is constituted of resident and non-resident customers. The former reside permanently in the apartment/house, the latter use the apartment/house typically for weekends, vacations, and/or short-term periods (generally, second homes), and different tariffs apply, as will be explained in the remainder of the article.