Motivators for adoption of photovoltaic systems at grid parity: A case study from Southern Germany

Abstract

a b s t r a c tIn some countries, photovoltaic (PV) technology is at a stage of development at which it can compete with conventional electricity sources in terms of electricity generation costs, i.e., grid parity. A case in point is Germany, where the PV market has reached a mature stage, the policy support has scaled down and the diffusion rate of PV systems has declined. This development raises a fundamental question: what are the motives to adopt PV systems at grid parity? The point of departure for the relevant literature has been on the impact of policy support, adopters and, recently, local solar companies. However, less attention has been paid to the motivators for adoption at grid parity. This paper presents an in depth analysis of the diffusion of PV systems, explaining the impact of policy measures, adopters and system suppliers. Anchored in an extensive and exploratory case study in Germany, we provide a context specific explanation to the motivations to adopt PV systems at grid parity.

Barriers to the adoption of photovoltaic systems: The state of the art

“…Some researchers have focused on economic aspects (e.g., [12,13]), while others have analyzed policy (e.g., [14,15]) and management dimensions (e.g., [16,17]). Many empirical studies have appeared in different contexts, not only based on a variety of countries, for example, Germany [15], Zimbabwe [18], and Thailand [17], but also type of application, for example, on-grid (e.g., [19,20]) and off-grid systems (e.g., [21,22]). For several decades, technology and costs were assumed to be not commercially competitive compared with conventional energy sources (see e.g., [23]).…”

Diffusion of renewable energy technologies: The need for policy in Colombia

“…Moreover, Claudy, Michelsen, O'Driscoll, and Mullen [54] highlight the importance of technology information over the financial issues, and explain that the technology knowledge and awareness precede the product characteristics' evaluation. Other authors explain that there are other factors that are more important than the price difference [55], and authors like Islam [56] highlight the importance of education and information over the adoption price difference. Most important to note is that, in this case, grid parity was attained very early in the simulation period; Fig.…”

Do the strategic decisions of multinational energy companies differ in divergent market contexts? An exploratory study

“…Examples of such institutions are national policies that allow energy companies to grow while pressuring them to adopt compliant strategies [57]. The importance of hard institutions on the development of renewable energy technologies is evident from the vast literature offering arguments for and against each policy framework for developing renewable energy technologies (e.g., [8,20,21,34,54,85,109]). …”

“…Energy scholars have argued that institutions have altered the energy industry in several ways, including policy design [8,11,18,41,42,50,109,110], new orientation in local markets [22,84,96,67], established networks [38,67], and diversified customer preferences and cultures [54,114,115]. The strategic decision as to whether or not to follow emerging climate-centered institutions is challenging for MNCs, who operate within the framework of divergent national institutions yet strive to compete [73].…”

“…The German policy framework has always been a successful example of how institutions can drive renewable technologies forward [96]. Since 2000, a generous feed-in tariff scheme determined by the Renewable Energy Sources Act (EEG) of 2000 was applied in that country, and subsidies were allocated to the generation of electricity from renewable sources [54,96]. 5 On the European level, this evolving market orientation toward a more-sustainable energy industry was reflected in the enforcement of an emissions-trading system (ETS) in 2005, established by European Directive 2003/87/EC.…”