New Research on Residential Solar Panel Adoption

October 30, 2024

Key influences on residential photovoltaic solar panel adoption in the United States

by Diren Kocakusak (PhD ’21), Michael Greenberg, and Clinton J. Andrews

Abstract

The prevalence of low-density residential development to host solar PV, the ubiquity of solar irradiation, and incentivizing policies have created substantial opportunities for homeowners in the United States. Federal, state, and municipal governments implement regulatory policies and financial incentives to promote photovoltaic solar systems in residential buildings with limited resources. Thus, understanding the main factors and their spatial variations is vital for expanding the accessibility of renewable energy benefits to specific socio-economic groups and submarkets. Our research includes linear regression, principal component regression, and spatial error models to provide empirical evidence for the relationship between the adoption rates and socio-economic, geographical, and technical factors while identifying characteristics of adopter groups. The results suggest that the relative advantage factors – electricity prices and solar irradiation – play the most significant role across all regions and market segmentations. Statewide policy indicators are the second most significant factor, followed by socio-economic variables on employment status, remote working, car ownership, and property value. Our results indicate that homeowners do not only differ in their circumstances but also in their motivations. This highlights a need for policy-makers and the solar industry to place greater emphasis on distinct characteristics of consumers motivated by ideology and consumers motivated by economic benefits.

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Citation

Kocakusak, D., Greenberg, M. R., & Andrews, C. J. (2024). Key influences on residential photovoltaic solar panel adoption in the United States. Energy Sources, Part B: Economics, Planning, and Policy, 19(1). https://doi.org/10.1080/15567249.2024.2418126

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