Impact of peer-effects in the adoption of rooftop solar photovoltaic (PV) systems at the household level

Abstract

This study examines the impact of peer-effects on the adoption of rooftop solar PV in households in India and its implications for policy development on encouraging the adoption of rooftop solar panels. The research combines survey data and interviews conducted with a subset of the survey respondents to gain a comprehensive understanding of the role of peer-effects in the raising an individual’s interest in solar panels, as well as their decision-making process. The findings reveal that peer-effects play a significant role in influencing individuals' interest in solar panels and their final decision to adopt rooftop solar PV. Active peer-effects, facilitated by conversations and information-sharing among individuals within existing social networks, are found to be more influential than passive peer-effects. The study emphasizes the importance of knowing someone who has already adopted solar panels as it builds trust, provides confirmation about the technology, and helps address concerns regarding economic feasibility and durability. The insights from this research contribute to a better understanding of peer-effects and their implications for promoting the adoption of rooftop solar PV in India. The findings can inform policy initiatives aimed at enhancing energy security and mitigating climate change by encouraging widespread adoption of rooftop solar PV systems.