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Diffusion of residential RT solar – is lack of funds the real issue?

Ashwini Kumar Aggarwal (Department for Government Affairs, Applied Materials India Private Limited, Faridabad, India and Department of Business Studies, Faculty of Management Studies and Research, Aligarh Muslim University, Aligarh, India)
Asif Ali Syed (Department of Business Administration, Faculty of Management Studies and Research, Aligarh Muslim University, Aligarh, India)
Sandeep Garg (Department of Business Studies, Faculty of Management Studies and Research, Aligarh Muslim University, Aligarh, India)

International Journal of Energy Sector Management

ISSN: 1750-6220

Article publication date: 22 October 2019

Issue publication date: 11 February 2020

357

Abstract

Purpose

Rooftop (RT) solar in India has grown to 4.4 GW by the end of March 2019 – but it is still under-performing vs national solar mission target of 40 GW. This paper aims to understand the drivers of the purchase intent (PI) for RT solar will enable policymakers to improve the penetration of this new and promising green technology.

Design/methodology/approach

This paper builds a structural equation modeling model for triggers of the PI of a residential RT solar photo-voltaic (SPV) buyer. The empirical study conducted in Delhi/national capital region of Delhi and Bangalore validates the role of the Unified Theory of Acceptance & Use of Technology (2) constructs in the PI of the residential sector RT solar buyer in India. It also explores a few myths – prior green habits have no relationship with the PI and self-efficacy has been dropped in the final path analysis to improve model fit.

Findings

This research explores the myth that financial self-efficacy – or prospect’s perception of his capability to fund (through own or credit finance) – will mean that the prospect is likely to be more conducive to an SPV purchase in the city contexts studied. It is more relevant for policymakers to work on factors such as social influence/ beliefs, effort expectancy and price-value beliefs. Other relevant triggers are performance expectancy, hedonic motivation and environmental beliefs.

Originality/value

This is the first Indian research leveraging multi-city survey of actual households build an empirically verified consumer behavior model for RT SPV in the residential sector leveraging the unified theory of acceptance and use of technology 2 constructs.

Keywords

Acknowledgements

This project is a part of PhD research on the solar PI of a residential user in India. While the Scholar is supported by Applied Materials India Pvt Ltd (Indian Subsidiary of Applied Materials, USA) under its continuous learning program, there is no involvement of Applied Materials in the project work or in the reports/papers that result from it. This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors. The research team thanks ARB Research for their excellent and systematic field survey/data collection – and to various industry stakeholders who have helped evolve this research with their valuable insights.

Citation

Aggarwal, A.K., Syed, A.A. and Garg, S. (2020), "Diffusion of residential RT solar – is lack of funds the real issue?", International Journal of Energy Sector Management, Vol. 14 No. 2, pp. 316-334. https://doi.org/10.1108/IJESM-02-2019-0004

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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