Abstract

Generating electricity from solar energy is a way for households to participate in the ongoing transition to decarbonized and more decentralized energy systems. A large empirical literature has examined the drivers and barriers associated with household solar PV adoption. An emerging strand of this literature investigates what distinguishes earlier adopters from later adopters and non-adopters. However, there is yet limited understanding of the differences between earlier and later adopters, as few papers have applied formal statistical models to compare different customer segments. The present study addresses this gap. We examine how the factors that influence household solar PV choices differ between earlier adopters, potential adopters — households that have considered installing solar PV but have not yet done so — and non-adopters. We analyze these choices using rich data from a household-level survey conducted in Finland. The findings show that the adoption of solar PV is linked to a multitude of socio-demographic and financial factors and personal motivations. There are clear differences in the motives and perceptions of adopters, potential adopters, and non-adopters. Accounting for such differences between customer segments will help to better design and target public policy instruments and marketing campaigns that aim to incentivize and nudge households toward solar PV investments.