IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v208y2023icp409-419.html
   My bibliography  Save this article

Assessing the performance and economic viability of solar home systems: A way forward towards clean energy exploration and consumption

Author

Listed:
  • Sun, Bohan
  • Gao, Ke
  • Liu, Shuai
  • Wei, Qiaoqiao
  • Wang, Hui

Abstract

Energy is an essential source of global economic expansion since it is related to fundamental generation and usage. In this context, solar home systems (SHS) are advantageous in two dimensions: reducing energy expenses and satisfying energy requirements. This research intends to assess the effectiveness of implementing SHS in the economic performance of China's small and medium-sized enterprises. Moreover, we investigate the moderating impact of knowledge of SHS between the elements of a deployment of SHS and the economic performance of small and medium-sized enterprises. The data was collected from 520 respondents, and the structural equation modeling (SEM) method was employed for data analysis. The findings showed that cost-efficient energy from SHSs has a continuous and considerable relationship with the economic performance of small and medium enterprises. Likewise, knowledge of SHS moderates significantly the links between efficient energy supply via SHS, the durability of SHS, and the economic performance of small and medium-sized enterprises. Further improvement of the economic performance of small and medium-sized enterprises is required by a greater emphasis on SHS, as shown by these results, which serve as good guidance for those who design regulations.

Suggested Citation

  • Sun, Bohan & Gao, Ke & Liu, Shuai & Wei, Qiaoqiao & Wang, Hui, 2023. "Assessing the performance and economic viability of solar home systems: A way forward towards clean energy exploration and consumption," Renewable Energy, Elsevier, vol. 208(C), pages 409-419.
    • Handle: RePEc:eee:renene:v:208:y:2023:i:c:p:409-419
    DOI: 10.1016/j.renene.2023.03.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148123002951
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2023.03.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lupangu, C. & Bansal, R.C., 2017. "A review of technical issues on the development of solar photovoltaic systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 950-965.
    2. Shabbir, Noman & Usman, Muhammad & Jawad, Muhammad & Zafar, Muhammad H. & Iqbal, Muhammad N. & Kütt, Lauri, 2020. "Economic analysis and impact on national grid by domestic photovoltaic system installations in Pakistan," Renewable Energy, Elsevier, vol. 153(C), pages 509-521.
    3. Diouf, Boucar, 2016. "Tontine: Self-help financing for solar home systems," Renewable Energy, Elsevier, vol. 90(C), pages 166-174.
    4. Baharoon, Dhyia Aidroos & Rahman, Hasimah Abdul & Fadhl, Saeed Obaid, 2016. "Publics׳ knowledge, attitudes and behavioral toward the use of solar energy in Yemen power sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 498-515.
    5. Junaid Ahmed & Laveet Kumar & Abdul Fatah Abbasi & Mamdouh El Haj Assad, 2022. "Energy, Exergy, Environmental and Economic Analysis (4e) of a Solar Thermal System for Process Heating in Jamshoro, Pakistan," Energies, MDPI, vol. 15(22), pages 1-18, November.
    6. Ghafoor, Abdul & Rehman, Tanzeel ur & Munir, Anjum & Ahmad, Manzoor & Iqbal, Muhammad, 2016. "Current status and overview of renewable energy potential in Pakistan for continuous energy sustainability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1332-1342.
    7. John Kuada & Esther Mensah, 2020. "Knowledge transfer in the emerging solar energy sector in Ghana," Contemporary Social Science, Taylor & Francis Journals, vol. 15(1), pages 82-97, January.
    8. Fawcett, Tina & Hampton, Sam, 2020. "Why & how energy efficiency policy should address SMEs," Energy Policy, Elsevier, vol. 140(C).
    9. George Adwek & Shen Boxiong & Paul O. Ndolo & Zachary O. Siagi & Chebet Chepsaigutt & Cicilia M. Kemunto & Moses Arowo & John Shimmon & Patrobers Simiyu & Abel C. Yabo, 2020. "The solar energy access in Kenya: a review focusing on Pay-As-You-Go solar home system," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(5), pages 3897-3938, June.
    10. Kalantzis, F. & Revoltella, D., 2019. "Do energy audits help SMEs to realize energy-efficiency opportunities?," Energy Economics, Elsevier, vol. 83(C), pages 229-239.
    11. Munir Ahmad & Nadeem Akhtar & Gul Jabeen & Muhammad Irfan & Muhammad Khalid Anser & Haitao Wu & Cem Işık, 2021. "Intention-Based Critical Factors Affecting Willingness to Adopt Novel Coronavirus Prevention in Pakistan: Implications for Future Pandemics," IJERPH, MDPI, vol. 18(11), pages 1-28, June.
    12. Iwona Bisaga & Priti Parikh & Yacob Mulugetta & Yohannes Hailu, 2019. "The potential of performance targets (imihigo) as drivers of energy planning and extending access to off‐grid energy in rural Rwanda," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(1), January.
    13. Halder, P.K., 2016. "Potential and economic feasibility of solar home systems implementation in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 568-576.
    14. Ida Johansson & Nawzad Mardan & Erwin Cornelis & Osamu Kimura & Patrik Thollander, 2019. "Designing Policies and Programmes for Improved Energy Efficiency in Industrial SMEs," Energies, MDPI, vol. 12(7), pages 1-17, April.
    15. Parkins, John R. & Rollins, Curtis & Anders, Sven & Comeau, Louise, 2018. "Predicting intention to adopt solar technology in Canada: The role of knowledge, public engagement, and visibility," Energy Policy, Elsevier, vol. 114(C), pages 114-122.
    16. Ahsan Akbar & Saqib Ali & Muhammad Azeem Ahmad & Minhas Akbar & Muhammad Danish, 2019. "Understanding the Antecedents of Organic Food Consumption in Pakistan: Moderating Role of Food Neophobia," IJERPH, MDPI, vol. 16(20), pages 1-20, October.
    17. Madurai Elavarasan, Rajvikram & Pugazhendhi, Rishi & Irfan, Muhammad & Mihet-Popa, Lucian & Campana, Pietro Elia & Khan, Irfan Ahmad, 2022. "A novel Sustainable Development Goal 7 composite index as the paradigm for energy sustainability assessment: A case study from Europe," Applied Energy, Elsevier, vol. 307(C).
    18. Xavier Lemaire, 2018. "Solar home systems and solar lanterns in rural areas of the Global South: What impact?," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 7(5), September.
    19. Irfan, Muhammad & Razzaq, Asif & Sharif, Arshian & Yang, Xiaodong, 2022. "Influence mechanism between green finance and green innovation: Exploring regional policy intervention effects in China," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    20. Duan, Kun & Ren, Xiaohang & Shi, Yukun & Mishra, Tapas & Yan, Cheng, 2021. "The marginal impacts of energy prices on carbon price variations: Evidence from a quantile-on-quantile approach," Energy Economics, Elsevier, vol. 95(C).
    21. Muhammad Irfan & Zhen-Yu Zhao & Munir Ahmad & Marie Claire Mukeshimana, 2019. "Solar Energy Development in Pakistan: Barriers and Policy Recommendations," Sustainability, MDPI, vol. 11(4), pages 1-18, February.
    22. Dogan, Eyup, 2015. "The relationship between economic growth and electricity consumption from renewable and non-renewable sources: A study of Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 534-546.
    23. Swati Anindita Sarker & Shouyang Wang & K M Mehedi Adnan & Muhammad Khalid Anser & Zeraibi Ayoub & Thu Hau Ho & Riffat Ara Zannat Tama & Anna Trunina & Md Mahmudul Hoque, 2020. "Economic Viability and Socio-Environmental Impacts of Solar Home Systems for Off-Grid Rural Electrification in Bangladesh," Energies, MDPI, vol. 13(3), pages 1-15, February.
    24. Syed Ahsan Ali Shah & Gordhan Das Valasai & Asif Ali Memon & Abdul Nasir Laghari & Nabi Bux Jalbani & Jody L. Strait, 2018. "Techno-Economic Analysis of Solar PV Electricity Supply to Rural Areas of Balochistan, Pakistan," Energies, MDPI, vol. 11(7), pages 1-19, July.
    25. Eyup Dogan & Sabina Hodžić & Tanja Fatur Šikić, 2022. "A way forward in reducing carbon emissions in environmentally friendly countries: the role of green growth and environmental taxes," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 5879-5894, December.
    26. Peffley, Trevor B. & Pearce, Joshua M., 2020. "The potential for grid defection of small and medium sized enterprises using solar photovoltaic, battery and generator hybrid systems," Renewable Energy, Elsevier, vol. 148(C), pages 193-204.
    27. Razzaq, Asif & Ajaz, Tahseen & Li, Jing Claire & Irfan, Muhammad & Suksatan, Wanich, 2021. "Investigating the asymmetric linkages between infrastructure development, green innovation, and consumption-based material footprint: Novel empirical estimations from highly resource-consuming economi," Resources Policy, Elsevier, vol. 74(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olumide Hassan & Stephen Morse & Matthew Leach, 2020. "The Energy Lock-In Effect of Solar Home Systems: A Case Study in Rural Nigeria," Energies, MDPI, vol. 13(24), pages 1-24, December.
    2. Ali, Muhammad Rizwan & Shafiq, Muhammad, 2021. "Revealing expert perspectives on challenges to electricity Demand-Side Management in Pakistan: An application of Q-Methodology," Utilities Policy, Elsevier, vol. 70(C).
    3. Razzaq, Asif & Sharif, Arshian & Ozturk, Ilhan & Skare, Marinko, 2022. "Inclusive infrastructure development, green innovation, and sustainable resource management: Evidence from China’s trade-adjusted material footprints," Resources Policy, Elsevier, vol. 79(C).
    4. Joshi, Lalita & Choudhary, Deepak & Kumar, Praveen & Venkateswaran, Jayendran & Solanki, Chetan S., 2019. "Does involvement of local community ensure sustained energy access? A critical review of a solar PV technology intervention in rural India," World Development, Elsevier, vol. 122(C), pages 272-281.
    5. Sun, Yunpeng & Razzaq, Asif & Sun, Huaping & Irfan, Muhammad, 2022. "The asymmetric influence of renewable energy and green innovation on carbon neutrality in China: Analysis from non-linear ARDL model," Renewable Energy, Elsevier, vol. 193(C), pages 334-343.
    6. Daniela Artemisa Calu & Adriana Ana Maria Davidescu & Alina Mihaela Irimescu & Corina-Graziella Batca Dumitru & Viorel Avram, 2023. "Implementation of Energy Efficiency Improvement Measures in Romania and the Role of Professional Accountants," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(63), pages 479-479, April.
    7. Chen, Huihui & Rehman, Mubeen Abdur & Luo, Jia & Ali, Madad, 2022. "Dynamic influence of natural resources, financial integration and eco-innovation on ecological sustainability in EKC framework: Fresh insights from China," Resources Policy, Elsevier, vol. 79(C).
    8. Chandel, Rahul & Chandel, Shyam Singh & Malik, Prashant, 2022. "Perspective of new distributed grid connected roof top solar photovoltaic power generation policy interventions in India," Energy Policy, Elsevier, vol. 168(C).
    9. Riaz Uddin & Abdurrahman Javid Shaikh & Hashim Raza Khan & Muhammad Ayaz Shirazi & Athar Rashid & Saad Ahmed Qazi, 2021. "Renewable Energy Perspectives of Pakistan and Turkey: Current Analysis and Policy Recommendations," Sustainability, MDPI, vol. 13(6), pages 1-28, March.
    10. Solangi, Yasir Ahmed & Longsheng, Cheng & Shah, Syed Ahsan Ali, 2021. "Assessing and overcoming the renewable energy barriers for sustainable development in Pakistan: An integrated AHP and fuzzy TOPSIS approach," Renewable Energy, Elsevier, vol. 173(C), pages 209-222.
    11. Jordi Cravioto & Hideaki Ohgaki & Hang Seng Che & ChiaKwang Tan & Satoru Kobayashi & Hla Toe & Bun Long & Eth Oudaya & Nasrudin Abd Rahim & Hooman Farzeneh, 2020. "The Effects of Rural Electrification on Quality of Life: A Southeast Asian Perspective," Energies, MDPI, vol. 13(10), pages 1-28, May.
    12. Wang, Yuyan & Wu, Qinghua & Razi, Ummara, 2023. "Drivers and mitigants of resources consumption in China: Discovering the role of digital finance and environmental regulations," Resources Policy, Elsevier, vol. 80(C).
    13. Sher, Ali & Qiu, Yuzhuo, 2022. "Pakistan's solar mission: Do solar finance and subsidy remove the barriers to solar installations?," Renewable Energy, Elsevier, vol. 190(C), pages 993-1005.
    14. Khan, Imran, 2020. "Impacts of energy decentralization viewed through the lens of the energy cultures framework: Solar home systems in the developing economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    15. Caporale, Guglielmo Maria & Donati, Cristiana & Spagnolo, Nicola, 2023. "Small and medium sized European firms and energy saving measures: The role of financing," Energy Policy, Elsevier, vol. 179(C).
    16. Tiep, Nguyen Cong & Wang, Mengqi & Mohsin, Muhammad & Kamran, Hafiz Waqas & Yazdi, Farzaneh Ahmadian, 2021. "An assessment of power sector reforms and utility performance to strengthen consumer self-confidence towards private investment," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 676-689.
    17. Tahir, Muhammad Usman & Siraj, Kiran & Ali Shah, Syed Faizan & Arshad, Naveed, 2023. "Evaluation of single-phase net metering to meet renewable energy targets: A case study from Pakistan," Energy Policy, Elsevier, vol. 172(C).
    18. Wang, Rongji & Laila, Ume & Nazir, Rabia & Hao, Xibin, 2023. "Unleashing the influence of industrialization and trade openness on renewable energy intensity using path model analysis: A roadmap towards sustainable development," Renewable Energy, Elsevier, vol. 202(C), pages 280-288.
    19. Shahid Ali & Qingyou Yan & Muhammad Sajjad Hussain & Muhammad Irfan & Munir Ahmad & Asif Razzaq & Vishal Dagar & Cem Işık, 2021. "Evaluating Green Technology Strategies for the Sustainable Development of Solar Power Projects: Evidence from Pakistan," Sustainability, MDPI, vol. 13(23), pages 1-29, November.
    20. Muhammad Asad & Farrukh Ibne Mahmood & Ilaria Baffo & Alessandro Mauro & Antonella Petrillo, 2022. "The Cost Benefit Analysis of Commercial 100 MW Solar PV: The Plant Quaid-e-Azam Solar Power Pvt Ltd," Sustainability, MDPI, vol. 14(5), pages 1-13, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:208:y:2023:i:c:p:409-419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.