Modeling the Residential Solar System industry

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cds

• June 22, 2011 22:53

I wanted to get thoughts on how best to model the impacts of residential solar panel sales and installation in California. For example, if I assume $10 million in sales of new residential solar systems, this is essentially a consumer purchase from a solar system "retailer" who also does the system installation. I am having trouble with the sector and activity type. Would this $10 million be a commodity change to sector 3319 wholesale trade distribution services (industry sales), or an industry change to sector 319 wholesales trade (industry sales) , or something else? So...do I run commodity or industry? Do I need to run a margin or RPC?

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  jenny

  • June 22, 2011 23:51

  Hi Christine, If you can get a breakdown between solar panel sales vs. installation value, you could: 1. Apply the solar panel sales value to sector 215-Heating equipment (except warm air furnaces) manufacturing. Unless you know that the manufacturing takes place locally, set LPP = SAM Model Value. Apply margins, then edit the margins so the the LPP for the retail sector is 1.00. This way, the purchases will be made locally, even if the equipment is not manufactured locally. 2. Apply the installation value to sector 40 (Maintenance and repair construction of residential structures).

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  cds

  • June 23, 2011 03:58

  Thanks. Should I set the "activity type" to industry or commodity change?

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  jenny

  • June 23, 2011 05:52

  Industry change.

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