Work

Diffusion of environmentally-friendly energy technologies: buy versus lease differences in residential PV markets

Year: 2013

Type: article

Abstract: Diffusion of microgeneration technologies, particularly rooftop photovoltaic (PV), represents a key option in reducing emissions in the residential sector. We use a uniquely rich dataset from the burgeoning residential PV market in Texas to study the nature of the consumer's decision-making process in the adoption of these technologies. In particular, focusing on the financial metrics and the information decision-makers use to base their decisions upon, we study how the leasing and buying models affect individual choices and, thereby, the adoption of capital-intensive energy technologies. Overall, our findings suggest that the leasing model more effectively addresses consumers' informational requirements and that, contrary to some other studies, buyers and lessees of PV do not necessarily differ significantly along socio-demographic variables. Instead, we find that the leasing model has opened up the residential PV market to a new, and potentially very large, consumer segment—those with a tight cash-flow situation.

Source: Environmental Research Letters

DOI: 10.1088/1748-9326/8/1/014022

Authors: Varun Rai, Benjamin Sigrin

Institution: The University of Texas at Austin

Language: English

Topic: Social Acceptance of Renewable Energy

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Affordable and clean energy, Climate action

Open Access status: gold

Estimated APC paid: $3,045