Track: Doctoral Dissertation Competition

Abstract

The transition to PV system requires a micro approach at the household level as decision-makers, due to the uptake of the renewable energy through an adoption process is strongly influenced by the acceptance of its technology at the household level. These households consider various aspects during the adoption process and play a unique role in the transition to renewable energy. Therefore, this study investigates the adopter and non-adopter characteristics of the photovoltaic (PV) system in Indonesian households and recognizes household heterogeneity based on critical adoption factors. A survey of 450 households was conducted in 2020. Results showed that the adopter and non-adopter groups differed significantly in seeking information and the obtained recommendations to use the PV system. However, the effect of suggestions and information sources was similar between the two groups, which had an identical perception of the PV benefits and high investment costs. The results also showed that the adopter and non-adopter groups had shown the characteristics of innovator and late adopter, respectively. Regarding environmental value, these groups did not show a significant difference in the problem of awareness and responsibility for using renewable energy. However, they differed in terms of the willingness-to-pay. Electricity bill reduction, energy independence, and environmental friendliness were subsequently the three primary motivators to install PV systems for the adopter groups, while high installation costs, service accessibilities, and lack of information were the main obstacles observed in the non-adopter category. The non-adopter group was willing to use the PV system when provided with a 55% subsidy on the investment cost, with a payback period, of not more than 8 years.