IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v108y2017icp154-162.html
   My bibliography  Save this article

When households go solar: Determinants of uptake of a Photovoltaic Scheme and policy insights

Author

Listed:
  • Briguglio, Marie
  • Formosa, Glenn

Abstract

The need to reduce dependence on fossil fuels has resulted in escalating interest in renewable energy generation. Yet few countries have seriously tested household potential to produce energy from PV panels. Propelled by mandatory EU targets for renewable energy, and constrained with limited territory, the Government of Malta launched a subsidy scheme with a view to encouraging PV installation by households. The scheme reached the desired adoption levels within a very short period of time. The study takes an entire-country dimension to assess the determinants of household investment in PV panels. A unique dataset is specifically constructed for this study. We find that the prevalence of younger households, higher incomes, dwelling ownership and unshared roof space results in higher rates of uptake. Neither higher educational levels nor the participation in other environmental schemes (recycling) contribute any explanatory power to uptake of PV panels. Pro-government sentiment (captured by voting outcomes) significantly and positively influences the take-up of the grant and installation of PV panels. We conclude by identifying some pointers for policy makers interested in harvesting the potential of households.

Suggested Citation

  • Briguglio, Marie & Formosa, Glenn, 2017. "When households go solar: Determinants of uptake of a Photovoltaic Scheme and policy insights," Energy Policy, Elsevier, vol. 108(C), pages 154-162.
  • Handle: RePEc:eee:enepol:v:108:y:2017:i:c:p:154-162
    DOI: 10.1016/j.enpol.2017.05.039
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517303233
    Download Restriction: Full text for ScienceDirect subscribers only

    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. Fokaides, Paris A. & Kylili, Angeliki, 2014. "Towards grid parity in insular energy systems: The case of photovoltaics (PV) in Cyprus," Energy Policy, Elsevier, vol. 65(C), pages 223-228.
    2. Faiers, Adam & Neame, Charles, 2006. "Consumer attitudes towards domestic solar power systems," Energy Policy, Elsevier, vol. 34(14), pages 1797-1806, September.
    3. Gadenne, David & Sharma, Bishnu & Kerr, Don & Smith, Tim, 2011. "The influence of consumers' environmental beliefs and attitudes on energy saving behaviours," Energy Policy, Elsevier, vol. 39(12), pages 7684-7694.
    4. Pyrgou, Andri & Kylili, Angeliki & Fokaides, Paris A., 2016. "The future of the Feed-in Tariff (FiT) scheme in Europe: The case of photovoltaics," Energy Policy, Elsevier, vol. 95(C), pages 94-102.
    5. Jenner, Steffen & Groba, Felix & Indvik, Joe, 2013. "Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries," Energy Policy, Elsevier, vol. 52(C), pages 385-401.
    6. Zhai, Pei & Williams, Eric D., 2012. "Analyzing consumer acceptance of photovoltaics (PV) using fuzzy logic model," Renewable Energy, Elsevier, vol. 41(C), pages 350-357.
    7. Zorić, Jelena & Hrovatin, Nevenka, 2012. "Household willingness to pay for green electricity in Slovenia," Energy Policy, Elsevier, vol. 47(C), pages 180-187.
    8. Solangi, K.H. & Islam, M.R. & Saidur, R. & Rahim, N.A. & Fayaz, H., 2011. "A review on global solar energy policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 2149-2163, May.
    9. Kwan, Calvin Lee, 2012. "Influence of local environmental, social, economic and political variables on the spatial distribution of residential solar PV arrays across the United States," Energy Policy, Elsevier, vol. 47(C), pages 332-344.
    10. Bauner, Christoph & Crago, Christine L., 2015. "Adoption of residential solar power under uncertainty: Implications for renewable energy incentives," Energy Policy, Elsevier, vol. 86(C), pages 27-35.
    11. Dupont, Diane P. & Bateman, Ian J., 2012. "Political affiliation and willingness to pay: An examination of the nature of benefits and means of provision," Ecological Economics, Elsevier, vol. 75(C), pages 43-51.
    12. Haas, Reinhard & Panzer, Christian & Resch, Gustav & Ragwitz, Mario & Reece, Gemma & Held, Anne, 2011. "A historical review of promotion strategies for electricity from renewable energy sources in EU countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1003-1034, February.
    13. Kylili, Angeliki & Fokaides, Paris A., 2015. "Competitive auction mechanisms for the promotion renewable energy technologies: The case of the 50MW photovoltaics projects in Cyprus," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 226-233.
    14. Hsu, Chiung-Wen, 2012. "Using a system dynamics model to assess the effects of capital subsidies and feed-in tariffs on solar PV installations," Applied Energy, Elsevier, vol. 100(C), pages 205-217.
    15. Duke, Richard & Williams, Robert & Payne, Adam, 2005. "Accelerating residential PV expansion: demand analysis for competitive electricity markets," Energy Policy, Elsevier, vol. 33(15), pages 1912-1929, October.
    16. Wustenhagen, Rolf & Wolsink, Maarten & Burer, Mary Jean, 2007. "Social acceptance of renewable energy innovation: An introduction to the concept," Energy Policy, Elsevier, vol. 35(5), pages 2683-2691, May.
    17. Lange, Ian & Moro, Mirko & Rahman, Mohammad, 2014. "Policy Labels and Investment Decision-making," Stirling Economics Discussion Papers 2014-01, University of Stirling, Division of Economics.
    18. Bryan Bollinger & Kenneth Gillingham, 2012. "Peer Effects in the Diffusion of Solar Photovoltaic Panels," Marketing Science, INFORMS, vol. 31(6), pages 900-912, November.
    19. Burns, John Edward & Kang, Jin-Su, 2012. "Comparative economic analysis of supporting policies for residential solar PV in the United States: Solar Renewable Energy Credit (SREC) potential," Energy Policy, Elsevier, vol. 44(C), pages 217-225.
    20. Kahn, Matthew E., 2007. "Do greens drive Hummers or hybrids? Environmental ideology as a determinant of consumer choice," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 129-145, September.
    21. Torgler, Benno & Garcia-Valinas, Maria A., 2007. "The determinants of individuals' attitudes towards preventing environmental damage," Ecological Economics, Elsevier, vol. 63(2-3), pages 536-552, August.
    22. Dora L. Costa & Matthew E. Kahn, 2013. "Energy Conservation “Nudges” And Environmentalist Ideology: Evidence From A Randomized Residential Electricity Field Experiment," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 680-702, June.
    23. Kotchen, Matthew J. & Moore, Michael R., 2007. "Private provision of environmental public goods: Household participation in green-electricity programs," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 1-16, January.
    24. Nidhi Tewathia, 2014. "Determinants of the Household Electricity Consumption: A Case Study of Delhi," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 337-348.
    25. Sardianou, E. & Genoudi, P., 2013. "Which factors affect the willingness of consumers to adopt renewable energies?," Renewable Energy, Elsevier, vol. 57(C), pages 1-4.
    26. Brudermann, Thomas & Reinsberger, Kathrin & Orthofer, Anita & Kislinger, Martin & Posch, Alfred, 2013. "Photovoltaics in agriculture: A case study on decision making of farmers," Energy Policy, Elsevier, vol. 61(C), pages 96-103.
    27. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    28. Labay, Duncan G & Kinnear, Thomas C, 1981. " Exploring the Consumer Decision Process in the Adoption of Solar Energy Systems," Journal of Consumer Research, Oxford University Press, vol. 8(3), pages 271-278, December.
    29. Welsch, Heinz & Kühling, Jan, 2009. "Determinants of pro-environmental consumption: The role of reference groups and routine behavior," Ecological Economics, Elsevier, vol. 69(1), pages 166-176, November.
    30. Erdinc, Ozan & Paterakis, Nikolaos G. & Catalão, João P.S., 2015. "Overview of insular power systems under increasing penetration of renewable energy sources: Opportunities and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 333-346.
    31. Bazilian, Morgan & Onyeji, Ijeoma & Liebreich, Michael & MacGill, Ian & Chase, Jennifer & Shah, Jigar & Gielen, Dolf & Arent, Doug & Landfear, Doug & Zhengrong, Shi, 2013. "Re-considering the economics of photovoltaic power," Renewable Energy, Elsevier, vol. 53(C), pages 329-338.
    32. Cherrington, R. & Goodship, V. & Longfield, A. & Kirwan, K., 2013. "The feed-in tariff in the UK: A case study focus on domestic photovoltaic systems," Renewable Energy, Elsevier, vol. 50(C), pages 421-426.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:enepol:v:123:y:2018:i:c:p:737-748 is not listed on IDEAS
    2. repec:eee:renene:v:119:y:2018:i:c:p:429-438 is not listed on IDEAS

    More about this item

    Keywords

    Solar; Household; Scheme; Energy; Determinants;

    Statistics

    Access and download statistics

    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:enepol:v:108:y:2017:i:c:p:154-162. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.