Product-service systems in solar PV deployment programs: What can we learn from the California Solar Initiative?

The product-service system (PSS) model is a potential alternative for increasing the adoption of PV systems. The California Solar Initiative (CSI) incentive program aiming to expand the Solar PV installed base in California, included the PSS option. Little is known, however, about the contribution of the PSS model on the CSI program and if the CSI program acted as a catalyzer of long-term positive/secondary effects. In this sense, the aim of this paper is to twofold, first, to assess the contribution of the PSS model on the CSI program and second, to investigate if the CSI program generated long-term network externalities. A system dynamics model was built in order to visualize i) the influence of the PSS model on the CSI and ii) the long-term effects, i.e. network externalities of the CSI program. The results suggest, the PSS model led to a significant increase in the installed base of the program and in turn, the program led to positive network externalities.