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

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.

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).

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.

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).

This paper is the first attempt to model the consumer behavior of the Indian RT solar photovoltaic buyer leveraging the UTAUT2.