Solar PV and energy poverty in Australia's residential sector

Expanding access to solar photovoltaics (PV) may help to reduce the incidence of energy
poverty. Yet little is known about the strength and magnitude of this relationship. This paper
uses cross-sectional survey data from the Australian Bureau of Statistics to conduct a
retrospective analysis of the effects of having rooftop solar PV for Australian households.
As the main identification challenges are the potential for omitted variables and reverse
causality, we present results for regressions controlling for potential confounders and also
use an instrumental variable approach. The study finds that having solar PV is associated
with a large decrease in the likelihood of experiencing energy poverty based on objective
indicators that compare household incomes and energy bills. Having solar PV is also
associated with a reduction in self-reported difficulty in paying bills on time, although this
effect is less robust across estimations. The findings could inform future policies for
promoting residential solar PV through an improved understanding of likely impacts.