Coman, Maria

Gordon, Jacqueline

Miller, Katheryn

English

Research Papers in Economics

Behavioral and Economic Reasons for Homeowners’ 
Reticence to Install Alternative Solar Energy Systems 
 
Maria Coman
1  
Jacqueline Gordon
2  
Katheryn Miller
3  
 
University of Connecticut: 
 
1 Agricultural Resource Economics maria.coman@uconn.edu 
2 Business School, Jacqueline.Gordon@business.uconn.edu  
3 Business School, katheryn.miller@uconn.edu    
 
 
 
 
 
 
Poster prepared for presentation at the Agricultural & Applied Economics Association 2010 
AAEA,CAES, & WAEA Joint Annual Meeting, Denver, Colorado, July 25-27, 2010 
 
 
 
 
 
 
Copyright 2010 by [authors]. All rights reserved. Readers may make verbatim copies of this 
document for non-commercial purposes by any means, provided that this copyright notice 
appears on all such copies. Behavioral and Economic Reasons for Homeowners’ Reticence 
to Install Alternative Solar Energy Systems
Maria Coman1 Jacqueline Gordon2 Katheryn Miller3
University of Connecticut: 
Goals
To evaluate :
a. The reasons for ‘rejecting renewables’, 
specifically solar photovoltaic systems 
(PV )
2. Survey results 
Strongest barriers: cost; long payback; inadequate sunlight; estimate energy needs;  
finding a contractor, difficulty financing, getting accurate quote
Additional findings:
a. Income may be related to knowledge about PV
b. Limited knowledge regarding 
a. Partial versus independent energy generation
b. How to find/access incentive programs
q y
1 Agricultural Resource Economics maria.coman@uconn.edu, 2 Business School, Jacqueline.Gordon@business.uconn.edu , 3 Business School, katheryn.miller@uconn.edu 
Poster prepared for presentation at the Agricultural & Applied Economics Association 2010 AAEA,CAES, & WAEA Joint Annual Meeting, Denver, Colorado, July 25-27, 2010
What are homeowners thinking about photovoltais systems (PV )
b. Attitudes about PV regarding specific 
attributes
c. Identify potential adopter grouping 
characteristics 
NEED
a. Electricity generation from solar energy 
in the US in 2008 amounted to only 3.9
3
10.6
20.2
4
4.9
9.9
24
26.9
11.9
10.7
9.9
18.3
10.6
13.9
38.8
36.6
11.5
9.6
63.4
17.5
17.8
19.2
18.3
5
20.4
17.8
13.5
12.5
2
3.9
5
2.9
1.9
0
Best clean energy
Cost higher 
Familiar with it
Know where to get
Satisfied with choices
F
e
a
t
u
r
e
s
gp y
1 Strongly disagree 2 3 4 5 6 7 Strongly agree
in the US in 2008 amounted to only 
.0002% (Savacool, 2009)
b. Total energy generation from 
renewable sources was 3.1 of total.
c. European countries get 20% instead.
Technical barriers
a. Off-Grid/Stand Alone Systems
b. Net metering; KW need Reliability
Cost
F
e
a
t
u
r
e
s
What solar energy feature meet consumer needs
1 Not meet needs 2 3 4 5 6 7 Meets needs
4.9
6.7
1
1.9
4
2
2.9
3
9.7
6.9
1
1
7
10.7
5
6.9
4.8
41
16.5
29.7
15.7
10.6
19
22.3
21.8
45.1
31.7
24
30.1
23.8
24.5
42.3
5
8.7
8.9
0% 25% 50% 75% 100%
Save the environ.
Reduce dependence 
Not enough choice
Too expensive
Increase property value
Best clean energy 
Percent endorsing b. Net metering; KW need 
c. Rebates vs. incentives vs. tax credits; 
state vs. federal (US Dept of Energy)
Theoretical background
a. Attitude-based decision making
b. Diffusion of innovations (Rogers, 
1962)  Recommendations:
 
Why not purchansing solar panels 6.1
5.7 5.6
3.9 3.9 4.0 3.9 4.1 3.8
3.3
2
2. 5
3
3. 5
4
4. 5
5
5. 5
6
Means
5.7
4.7 4.7
4.4
3.6
3.2
5.6 5.6
4.7
4.3
3.6
2
2.5
3
3.5
4
4.5
5
5.5
6
Attitudes about solar panels
Means
0% 25% 50% 75% 100%
Product Warranty
Energy Efficiency
Durability
Aesthetics
y
Percent endorsing
)
a. Awareness, Observability, 
Triability (Labay & Kinear, 1981)
Methods:
1. Focus group (4 participants)
2. Survey development and pretest
3. Survey measurement (online and 
on paper: 104 respondents)
Recommendations: 
1. Clarification of long term financial benefits in 
the, for specific existing household sizes, 
needs, and current energy expenses, 
combined
2. Offering info on existent financial incentives 
(like tax credits, or lease programs) and their 
impact on easing the initial financial burden 
3 Special promotions like free in house
 High initial cost
High package cost
Long payback
Difficult financing
Finding contractor
Estimate energ y req.
Accurate quote
Inadequate sunlight
Ha il damage
No blend
2
Why homeowners are not purchasing solar panels
1  Strongly disagree 2 3 4 5 6 7  Strongly agree
on paper: 104 respondents)
1. PV attributes (cost, property 
value, choices)
2. Reasons for not purchasing PV
Results:
1. Focus group
i. Concern: Cost & Payback period
3. Special promotions, like free in house 
estimates, and short informational seminaries
COST: Few sources of info; internet not helpful either;
- In CT for a 10KW system (reduction $200/month in electric bill) 
costs 60,000USD; CT state rebate 12,000 ; federal tax credit 
14,000; + inverter 5,000  final cost $49,000 (Source: Alteris
Renewables presentation in Manchester CT www.alterisinc.com)
- In UK, the cost in 2003 according to Faiers & Neame (2004) was 
£3,000=$4,500USD (KW not specified).
Literature cited:
Labay, D., & Kinnear, T. (1981). Exploring the consumer decision process in the
adoption of solar energy systems. Journal of Consumer Research, 8(3), 271-278.
12 5
11.1
16
14.6
16
14.8
27.5
88
8.6
7.4
13.4
6.2
2.5
11.3
13 8
7.4
6.2
3.7
7.4
8.6
11.3
25
33.3
37
35.4
39.5
49.4
28.8
16 3
21
17.3
11
17.3
8.6
7.5
11 3
14.8
8.6
9.8
7.4
11.1
6.3
12 5
3.7
7.4
12.2
6.2
4.9
7.5
Id t l i h t
Estimate energy req.
Finding contractor
Difficult financing
Hail damage
Accurate quote
No blend with roof/backyard
F
e
a
t
u
r
e
s
ii. Difficulty in getting adequate 
quote (technical barriers)
iii. Household adjustments needed
iv. Aesthetics
v. “Wait-and-see” attitudes
Project completed for Marketing Research,F a l l
2009, under prof. Joseph Pancras guidance
adoption of solar energy systems. Journal of Consumer Research, 8(3), 271 278.
Rogers, E. (1962). Diffusion of innovations: Free Press.
Sovacool, B. (2009). Rejecting renewables: The socio-technical impediments to
renewable electricity in the United States. Energy Policy.
0
1.2
2.4
12.5
0
0
1.2
8.8
2.4
0
4.8
13.8
9.8
24.4
16.7
25
12.2
12.2
10.7
16.3
29.3
24.4
31
11.3
46.3
37.8
33.3
12.5
0% 25% 50% 75% 100%
High initial cost
High package cost
Long payback
Inadequate sunlight
Percent endorsing

Behavioral and Economic Reasons for Homeowners’ Reticence to Install Alternative Solar Energy Systems

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