Article publication Determinants of Solar Panel Adoption by Mamadou Saliou Barry and Anna Creti in Springer review.
Handbook of Labor, Human Resources and Population Economics
This chapter reviews the main determinants of solar panel adoption, focusing on residential users. After providing some figures stressing the evolution of photovoltaics increase in the last years, the growth of this decentralized energy is analyzed. The geographical scope of this chapter encompasses both countries where renewables are deployed to substitute existing fossil fuel sources, and countries where photovoltaics represents a key technology for energy access. Peer effects, education, and income are the main enabling factors of solar panel adoption, which prove to be robust in all countries studied. The learning curve effect is explained. However, adopters’ credit constraints in developed countries are solved by massive public subsidies. These support mechanisms are not available in emerging countries. Instead, innovative solutions for energy access, namely, mobile banking, provide new opportunities to generalize solar panel adoption and therefore ease the process of rural electrification, namely, in Sub-Saharan Africa and Asia.