Factors driving Indian consumer’s purchase intention of roof top solar

Abstract

Purpose The solar energy sector has been growing with dramatic reduction in commercial pricing, improved efficiencies and improved deployments/usage conveniences. The purpose of this study is to understand the drivers of the purchase intent for rooftop (RT) solar. This will enable policymakers to improve the penetration of this new and promising green technology. Design/methodology/approach This research leverages the framework of unified theory of acceptance and use of technology 2 (UTAUT2) to identify and build a quantitative approach to identify factors (and their relative impact on) the purchase intent of a domestic RT solar buyer. The 400 respondents’ field data were collected in Bangalore (a high RT solar penetration region) and Delhi NCR (relatively lower RT solar penetration region). Findings The exploratory factor analysis study revealed that the consumers’ purchase intention of RT Solar is shaped by seven main factors, namely, environmental concerns, social beliefs, hedonic motivation, performance expectancy, price value, self-efficacy and effort expectancy, and that these factors explain 79.2 per cent of the field data. This study finds that social beliefs followed by effort expectance concerns are key factors explaining approximately 20 per cent of the purchase intent each, while unit change in price value beliefs explain about 18 per cent of the purchase intent. Practical implications Suggested policy measures include building on strengthening emergence of local solar evangelist groups in the communities and easing effort expectance items (e.g. building legal, regulatory frameworks and financial tools for solar penetration models such as renewable energy services companies). Originality/value This paper is the first attempt to model the consumer behavior of the Indian RT solar photovoltaic buyer leveraging the UTAUT2.

Diffusion of RT Solar PV in Suburbs of Delhi/NCR, India: Triggers of Architect Recommendation Intent

“…The variables used in the UTAUT2 model are briefed in Table 1, and the model is shared in Figure 1. Aggarwal et al (2019) show that social influence is the most powerful trigger of the purchase intent followed by effort expectance and other constructs in the UTAUT2 model.…”

“…Selfefficacy beliefs relating to capability to design, engineer and install the solar-either directly or through a competent vendor emerge as a significant trigger. Aggarwal et al (2019) have modelled the end-user purchase intent using UTAUT2 theory. Their observation is that the target user is currently using grid electricity and has no real reason to move to solar.…”

“…The answer is in the end-market resistance to changeand this begets the need for a structured, empirical understanding of the consumer behaviour of the residential solar buyer. Aggarwal, Syed, and Garg (2019) have done an empirical study in Delhi NCR and Bangalore in India to test the applicability of the unified theory of acceptance and use of technology 2 (UTAUT2) model to the context of Indian residential RT SPV. UTAUT2 is one of the recent consumer behaviour models that build on earlier work with three additional constructs of habit/environmental beliefs, hedonic motivation and price value (Venkatesh, Thong, & Xu, 2012, March).…”

“…Use of UTAUT2 model has enabled Aggarwal et al (2019) to empirically verify a high fit (0.91 CFI) model for end-user purchase intent for rooftop solar in the Indian context. UTAUT2 behaviour models normally deliver a significantly improved fit versus traditional TPB models because they investigate more factors beyond the subjective norm (social influence beliefs).…”

Factors Affecting Public Willingness to Adopt Renewable Energy Technologies: An Exploratory Analysis

“…Security and reliability of RETs as a source of energy [9,11,17,19,20,[33][34][35][36][37][38] The adoption of RETs stimulates local investments and supports job creation [9,34,35,39] The adoption of RETs reduces the consumption of fossil fuel [16,33,36,39] The adoption of RETs will reduce environmental impact and climate change [9,[16][17][18]21,33,35,36,[40][41][42][43][44][45][46] The adoption of RETs reduces the load and consumption of public electricity utilities [20,40] Initial cost of owning and installing RETs [9,11,12 Cost of RET maintenance and after-sales support [9,14,17,36,55,56] Localization of RET manufacturing industry [11,13,…”