  As the penetration of distributed energy resources in the residential sector
increases, the scope for sharing arrangements expands. We model a peer-to-peer
rental market for rooftop solar and energy storage in the residential sector,
with households seeking to minimize their electricity costs. For varying
adoption levels, we characterize the market rental price, quantity, and
participation rate. We find that up to 15% adoption, the peer-to-peer market
generates a surplus comparable to that attainable though a centralized sharing
model. The peer-to-peer market can incentivize an increase in total adoption in
the long run. We find that direct subsidies would be a cheaper way to increase
adoption if enabling the peer-to-peer market increases distribution grid costs
by more than a few percent. This cost increase would be related to how locally
the peer-to-peer market can match renters and owners. We compute metrics of
this localness and find that the market clears quite locally for a wide range
of adoption rates.
