IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v333y2025ics0360544225029445.html

From demonstration to diffusion: Community dynamics and incentives analysis in household solar photovoltaic adoption

Author

Listed:
  • Zhang, Shanyuan
  • Zou, Hongyang
  • Yao, Ye
  • Feng, Kuishuang
  • Tian, Junfang
  • Liu, Diyi
  • Du, Huibin

Abstract

Household solar photovoltaic (PV) systems offer a promising pathway toward decarbonization; however, their widespread adoption remains hindered by low consumer penetration and insufficient diffusion mechanisms. While low-carbon communities have been promoted as prototypes to catalyze PV adoption, existing research lacks a nuanced understanding of how demonstration effects and community behavioral norms shape diffusion dynamics. To address this critical gap, this study employs an agent-based model (ABM) to simulate the adoption of PV systems, leveraging comprehensive survey and electricity consumption data from Tianjin, China. The model captures the interplay between prosumers (PV adopters), potential consumers, and external interventions such as economic subsidies and information dissemination strategies. The findings reveal that moderate community behavioral norms, despite achieving peak adoption 8–9 years later than strong norms, rely on small groups to form demonstration effects, gradually achieving high adoption rates over time. With demonstration effects, the adoption rate increases by 20–30 % under subsidy scenarios and by 38.49 % under information dissemination strategies. Tailored policy strategies are essential. The early adoption of kilowatt-hour subsidies works best in communities with weak behavioral norms, while low-carbon pilot communities with strong governance benefit more from initial installation subsidies. Crucially, the combination of information dissemination and demonstration effects emerges as a highly cost-effective alternative to financial subsidies, accelerating adoption while minimizing fiscal burdens. This study highlights the transformative potential of social dynamics and tailored incentives in driving PV diffusion, offering actionable insights to support global low-carbon energy transitions.

Suggested Citation

  • Zhang, Shanyuan & Zou, Hongyang & Yao, Ye & Feng, Kuishuang & Tian, Junfang & Liu, Diyi & Du, Huibin, 2025. "From demonstration to diffusion: Community dynamics and incentives analysis in household solar photovoltaic adoption," Energy, Elsevier, vol. 333(C).
  • Handle: RePEc:eee:energy:v:333:y:2025:i:c:s0360544225029445
    DOI: 10.1016/j.energy.2025.137302
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544225029445
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2025.137302?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Jager, Wander, 2006. "Stimulating the diffusion of photovoltaic systems: A behavioural perspective," Energy Policy, Elsevier, vol. 34(14), pages 1935-1943, September.
    2. Onwezen, Marleen C. & Antonides, Gerrit & Bartels, Jos, 2013. "The Norm Activation Model: An exploration of the functions of anticipated pride and guilt in pro-environmental behaviour," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 141-153.
    3. Du, Hua & Han, Qi & de Vries, Bauke & Sun, Jun, 2024. "Community solar PV adoption in residential apartment buildings: A case study on influencing factors and incentive measures in Wuhan," Applied Energy, Elsevier, vol. 354(PA).
    4. Farrow, Katherine & Grolleau, Gilles & Ibanez, Lisette, 2017. "Social Norms and Pro-environmental Behavior: A Review of the Evidence," Ecological Economics, Elsevier, vol. 140(C), pages 1-13.
    5. Alois Stutzer & Rafael Lalive, 2004. "The Role of Social Work Norms in Job Searching and Subjective Well-Being," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 696-719, June.
    6. 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.
    7. Reddy, B. Sudhakara, 2018. "Economic dynamics and technology diffusion in indian power sector," Energy Policy, Elsevier, vol. 120(C), pages 425-435.
    8. Babutsidze, Zakaria & Chai, Andreas, 2018. "Look at me Saving the Planet! The Imitation of Visible Green Behavior and its Impact on the Climate Value-Action Gap," Ecological Economics, Elsevier, vol. 146(C), pages 290-303.
    9. Dominik Bär & Stefan Feuerriegel & Ting Li & Markus Weinmann, 2023. "Message framing to promote solar panels," Nature Communications, Nature, vol. 14(1), pages 1-9, December.
    10. Middlemiss, Lucie & Parrish, Bradley D., 2010. "Building capacity for low-carbon communities: The role of grassroots initiatives," Energy Policy, Elsevier, vol. 38(12), pages 7559-7566, December.
    11. Farm, Mooi Yen & Vafaei-Zadeh, Ali & Hanifah, Haniruzila & Nikbin, Davoud, 2024. "The role of value, belief and norm in shaping intentions to use residential rooftop solar for environment sustainability," Energy Policy, Elsevier, vol. 194(C).
    12. Liu, Diyi & Qi, Suntong & Xu, Tiantong, 2023. "In the post-subsidy era: How to encourage mere consumers to become prosumers when subsidy reduced?," Energy Policy, Elsevier, vol. 174(C).
    13. Brounen, Dirk & Kok, Nils & Quigley, John M., 2013. "Energy literacy, awareness, and conservation behavior of residential households," Energy Economics, Elsevier, vol. 38(C), pages 42-50.
    14. Li, Jiaxin & Wang, Chaofan & Peng, Jiachao & Shuai, Jing & Shuai, Chuanmin, 2025. "Impoverished villagers’ solar PV adoption in rural China: A perspective of agent intervention, economic benefit perception and sense of community," Energy, Elsevier, vol. 315(C).
    15. Bryan Bollinger & Kenneth Gillingham, 2012. "Peer Effects in the Diffusion of Solar Photovoltaic Panels," Marketing Science, INFORMS, vol. 31(6), pages 900-912, November.
    16. Wang, Chaofan & Shuai, Jing & Ding, Liping & Lu, Yang & Chen, Jia, 2022. "Comprehensive benefit evaluation of solar PV projects based on multi-criteria decision grey relation projection method: Evidence from 5 counties in China," Energy, Elsevier, vol. 238(PB).
    17. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    18. David Godes & Dina Mayzlin, 2009. "Firm-Created Word-of-Mouth Communication: Evidence from a Field Test," Marketing Science, INFORMS, vol. 28(4), pages 721-739, 07-08.
    19. Alderete Peralta, Ali & Balta-Ozkan, Nazmiye & Longhurst, Philip, 2022. "Spatio-temporal modelling of solar photovoltaic adoption: An integrated neural networks and agent-based modelling approach," Applied Energy, Elsevier, vol. 305(C).
    20. Fabian Scheller & Isabel Doser & Emily Schulte & Simon Johanning & Russell McKenna & Thomas Bruckner, 2021. "Stakeholder dynamics in residential solar energy adoption: findings from focus group discussions in Germany," Papers 2104.14240, arXiv.org.
    21. Wang, Ge & Zhang, Qi & Li, Yan & Li, Hailong, 2018. "Policy simulation for promoting residential PV considering anecdotal information exchanges based on social network modelling," Applied Energy, Elsevier, vol. 223(C), pages 1-10.
    22. Miyoung Lee & Daehwan Kim, 2022. "Nudging down household electricity usage during peak hours with small monetary rewards," Energy & Environment, , vol. 33(5), pages 853-869, August.
    23. Moti Michaeli & Daniel Spiro, 2017. "From Peer Pressure to Biased Norms," American Economic Journal: Microeconomics, American Economic Association, vol. 9(1), pages 152-216, February.
    24. Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall.
    25. Alejandro Pena-Bello & David Parra & Mario Herberz & Verena Tiefenbeck & Martin K. Patel & Ulf J. J. Hahnel, 2022. "Integration of prosumer peer-to-peer trading decisions into energy community modelling," Nature Energy, Nature, vol. 7(1), pages 74-82, January.
    26. Liu, Diyi & Du, Huibin & Southworth, Frank & Ma, Shoufeng, 2017. "The influence of social-psychological factors on the intention to choose low-carbon travel modes in Tianjin, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 42-53.
    27. Grant Jacobsen & Matthew Kotchen & Greg Clendenning, 2013. "Community-based incentives for environmental protection: the case of green electricity," Journal of Regulatory Economics, Springer, vol. 44(1), pages 30-52, August.
    28. Paul J. Ferraro & Michael K. Price, 2013. "Using Nonpecuniary Strategies to Influence Behavior: Evidence from a Large-Scale Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 64-73, March.
    29. Nuñez-Jimenez, Alejandro & Mehta, Prakhar & Griego, Danielle, 2023. "Let it grow: How community solar policy can increase PV adoption in cities," Energy Policy, Elsevier, vol. 175(C).
    30. Vassileva, Iana & Wallin, Fredrik & Dahlquist, Erik, 2012. "Understanding energy consumption behavior for future demand response strategy development," Energy, Elsevier, vol. 46(1), pages 94-100.
    31. Loschelder, David D. & Siepelmeyer, Henrik & Fischer, Daniel & Rubel, Julian A., 2019. "Dynamic norms drive sustainable consumption: Norm-based nudging helps café customers to avoid disposable to-go-cups," Journal of Economic Psychology, Elsevier, vol. 75(PA).
    32. Agarwal, Sumit & Rengarajan, Satyanarain & Sing, Tien Foo & Yang, Yang, 2017. "Nudges from school children and electricity conservation: Evidence from the “Project Carbon Zero” campaign in Singapore," Energy Economics, Elsevier, vol. 61(C), pages 29-41.
    33. Hongwei Xiao & Zhongyu Ma & Peng Zhang & Ming Liu, 2019. "Study of the impact of energy consumption structure on carbon emission intensity in China from the perspective of spatial effects," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 99(3), pages 1365-1380, December.
    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. Terenzi, Marco & Ogheri, Chiara & Locatelli, Giorgio, 2025. "Understanding homeowners' behavioural determinants: A study on house retrofitting and PV adoption," Applied Energy, Elsevier, vol. 397(C).
    2. Astrid Dannenberg & Gunnar Gutsche & Marlene Batzke & Sven Christens & Daniel Engler & Fabian Mankat & Sophia Moeller & Eva Weingaertner & Andreas Ernst & Marcel Lumkowsky & Georg von Wangenheim & Ger, 2022. "The effects of norms on environmental behavior," MAGKS Papers on Economics 202219, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Alipour, M. & Salim, H. & Stewart, Rodney A. & Sahin, Oz, 2020. "Predictors, taxonomy of predictors, and correlations of predictors with the decision behaviour of residential solar photovoltaics adoption: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    4. Wen, Hong-xing & Wang, Chan & Nie, Pu-yan, 2021. "Acceleration of rural households’ conversion to cleaner cooking fuels: The importance and mechanisms of peer effects," Energy Policy, Elsevier, vol. 154(C).
    5. Fabian Scheller & Isabel Doser & Emily Schulte & Simon Johanning & Russell McKenna & Thomas Bruckner, 2021. "Stakeholder dynamics in residential solar energy adoption: findings from focus group discussions in Germany," Papers 2104.14240, arXiv.org.
    6. Magdalena Grębosz-Krawczyk & Agnieszka Zakrzewska-Bielawska & Sylwia Flaszewska, 2021. "From Words to Deeds: The Impact of Pro-Environmental Self-Identity on Green Energy Purchase Intention," Energies, MDPI, vol. 14(18), pages 1-17, September.
    7. Braito, Michael & Flint, Courtney & Muhar, Andreas & Penker, Marianne & Vogel, Stefan, 2017. "Individual and collective socio-psychological patterns of photovoltaic investment under diverging policy regimes of Austria and Italy," Energy Policy, Elsevier, vol. 109(C), pages 141-153.
    8. Li, Jiaxin & Wang, Chaofan & Peng, Jiachao & Shuai, Jing & Shuai, Chuanmin, 2025. "Impoverished villagers’ solar PV adoption in rural China: A perspective of agent intervention, economic benefit perception and sense of community," Energy, Elsevier, vol. 315(C).
    9. Dannenberg, Astrid & Weingärtner, Eva, 2023. "The effects of observability and an information nudge on food choice," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    10. Fuhrmann-Riebel, Hanna & D’Exelle, Ben & López Vargas, Kristian & Tonke, Sebastian & Verschoor, Arjan, 2024. "Correcting misperceptions about trends and norms to address weak collective action — Experimental evidence from a recycling program," Journal of Environmental Economics and Management, Elsevier, vol. 128(C).
    11. Philippe Coent & Raphaële Préget & Sophie Thoyer, 2021. "Farmers Follow the Herd: A Theoretical Model on Social Norms and Payments for Environmental Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(2), pages 287-306, February.
    12. Liu, Diyi & Qi, Suntong & Xu, Tiantong, 2023. "In the post-subsidy era: How to encourage mere consumers to become prosumers when subsidy reduced?," Energy Policy, Elsevier, vol. 174(C).
    13. Diekert, Florian & Eymess, Tillmann, 2024. "Changing collective action: Nudges and team decisions," Games and Economic Behavior, Elsevier, vol. 147(C), pages 388-406.
    14. Phu Nguyen-Van & Anne Stenger & Tuyen Tiet, 2021. "Social incentive factors in interventions promoting sustainable behaviors: A meta-analysis," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-27, December.
    15. Qiao, Kunyuan & Dowell, Glen, 2022. "Environmental concerns, income inequality, and purchase of environmentally-friendly products: A longitudinal study of U.S. counties (2010-2017)," Research Policy, Elsevier, vol. 51(4).
    16. Vu, Ha Thu & Tran, Duc & Goto, Daisaku & Kawata, Keisuke, 2020. "Does experience sharing affect farmers’ pro-environmental behavior? A randomized controlled trial in Vietnam," World Development, Elsevier, vol. 136(C).
    17. Zhang, Nan & Hwang, Bon-Gang & Lu, Yujie & Ngo, Jasmine, 2022. "A Behavior theory integrated ANN analytical approach for understanding households adoption decisions of residential photovoltaic (RPV) system," Technology in Society, Elsevier, vol. 70(C).
    18. Cardol, Hanna & Mignon, Ingrid & Lantz, Björn, 2025. "Rethinking the forecasting of innovation diffusion: A combined actor- and system approach," Technological Forecasting and Social Change, Elsevier, vol. 214(C).
    19. Blankenberg, Ann-Kathrin & Alhusen, Harm, 2019. "On the determinants of pro-environmental behavior: A literature review and guide for the empirical economist," University of Göttingen Working Papers in Economics 350, University of Goettingen, Department of Economics, revised 2019.
    20. Wang, Chaofan & Wang, Yilan & Zhao, Yujia & Shuai, Jing & Shuai, Chuanmin & Cheng, Xin, 2023. "Cognition process and influencing factors of rural residents' adoption willingness for solar PV poverty alleviation projects: Evidence from a mixed methodology in rural China," Energy, Elsevier, vol. 271(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:energy:v:333:y:2025:i:c:s0360544225029445. 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/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.