Decentralized Renewable Energy and Socioeconomic Disparities

Decentralized renewable energy (DRE) has emerged as a key tool for global energy transition and emissions reduction. While DRE has the potential to democratize energy production, evidence suggests it may cause unequal benefit distribution across population groups. This study provides the first comprehensive empirical analysis of DRE distribution patterns across all Israeli municipalities, examining policy implications for equitable energy transitions. We analyzed 16,998 rooftop solar installations across 232 municipalities between 2017 and 2022, categorized as residential and commercial installations. Using regression analysis, we examined how geographic, socioeconomic, and demographic factors associate with installation adoption rates. Findings reveal divergent patterns between installation types. For residential installations, socioeconomic status emerged as the primary determinant, with adoption rates increasing linearly with municipal wealth. These disparities widened significantly over time, contradicting expectations that declining costs would democratize access. For commercial installations, the urban–rural divide proved dominant, with rural areas showing substantially higher adoption rates. Our analysis reveals important policy implications and recommendations for global DRE deployment, emphasizing the need to integrate equity considerations into renewable energy policy design to accelerate the transition to renewable energy while minimizing socioeconomic disparities.