# Peer to Peer Sharing of Distributed Energy Resources

**Authors:** Siddharth Patel, Ram Rajagopal  
**arXiv:** [1808.07839](https://arxiv.org/abs/1808.07839)  
**Date:** 2018-08-22  
**Summary page:** https://www.summarizepaper.com/en/paper/1808.07839v2/

## Key points

- Study explores potential of peer-to-peer rental market for rooftop solar and energy storage in residential sector
- Focus on households aiming to minimize electricity costs through sharing model
- Findings show up to 15% adoption, peer-to-peer market can generate surplus comparable to centralized model
- Decentralized approach incentivizes increase in total adoption over time
- Cost implications considered; direct subsidies may be more cost-effective if grid costs rise significantly
- Matching efficiency assessed through metrics of "localness," showing market operates locally across various adoption rates
- Study highlights viability and benefits of peer-to-peer sharing for distributed energy resources in residential areas, offering insights into optimizing cost-effectiveness and fostering greater adoption rates

## Summary

In their study titled "Peer to Peer Sharing of Distributed Energy Resources," authors Siddharth Patel and Ram Rajagopal explore the potential of a peer-to-peer rental market for rooftop solar and energy storage in the residential sector. As distributed energy resources become more prevalent in residential settings, opportunities for sharing arrangements expand. The researchers focus on households aiming to minimize electricity costs through this sharing model. Through modeling various adoption levels, the study delves into the market dynamics of rental price, quantity, and participation rate. Surprisingly, the findings reveal that up to 15% adoption, the peer-to-peer market can generate a surplus comparable to that achievable through a centralized sharing model. Moreover, this decentralized approach has the potential to incentivize an increase in total adoption over time. The researchers also consider the cost implications of enabling the peer-to-peer market. They suggest that direct subsidies may be a more cost-effective strategy for increasing adoption if implementing the peer-to-peer model leads to distribution grid costs rising by more than a few percent. This cost increase is closely tied to how effectively the peer-to-peer market can match renters with owners. To assess this matching efficiency, metrics of "localness" are computed, revealing that the market operates quite locally across a wide range of adoption rates. Overall, this study sheds light on the viability and benefits of peer-to-peer sharing arrangements for distributed energy resources in residential areas, offering insights into optimizing cost-effectiveness and fostering greater adoption rates in sustainable energy practices.