IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v182y2023ics0301421523003464.html
   My bibliography  Save this article

When do circular business models resolve barriers to residential solar PV adoption? Evidence from survey data in flanders

Author

Listed:
  • Van Opstal, Wim
  • Smeets, Anse

Abstract

Solar energy is an important renewable energy source to support a decarbonization of our energy mix. Although the uptake of solar PV surged in the last decade, many households face significant barriers to invest in solar energy. Circular business models may mitigate the upcoming PV waste problem and increase energy and resource independence. In this paper, we investigate when circular business models may also lower barriers for residential PV-adoption. We use survey data (n = 3996) from Flanders (Belgium), controlling for personal and housing characteristics, and institutional trust parameters. Our results suggest that upfront costs, a lack of trust in governments, technological obsolescence, and a perceived lack of profitability constitute the main barriers for residential solar PV investments. Circular business models, including product service systems and PV reuse, appear to resolve only the former barrier. Our results show the importance of trust in service providers and technology, and the complex relationship between trust in governments and solar PV investments. We recommend policymakers to coordinate energy, environmental, and social policy initiatives aimed at enhancing solar PV adoption in a sustainable manner. Moreover, we recommend to invest in legal complementarity and legal certainty, enabling households to regain trust to adopt new and sustainable technologies.

Suggested Citation

  • Van Opstal, Wim & Smeets, Anse, 2023. "When do circular business models resolve barriers to residential solar PV adoption? Evidence from survey data in flanders," Energy Policy, Elsevier, vol. 182(C).
    • Handle: RePEc:eee:enepol:v:182:y:2023:i:c:s0301421523003464
    DOI: 10.1016/j.enpol.2023.113761
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421523003464
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2023.113761?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Verbruggen, Aviel, 2004. "Tradable green certificates in Flanders (Belgium)," Energy Policy, Elsevier, vol. 32(2), pages 165-176, January.
    2. Sixia Chen & David Haziza, 2019. "Recent Developments in Dealing with Item Non‐response in Surveys: A Critical Review," International Statistical Review, International Statistical Institute, vol. 87(S1), pages 192-218, May.
    3. Farrell, C.C. & Osman, A.I. & Doherty, R. & Saad, M. & Zhang, X. & Murphy, A. & Harrison, J. & Vennard, A.S.M. & Kumaravel, V. & Al-Muhtaseb, A.H. & Rooney, D.W., 2020. "Technical challenges and opportunities in realising a circular economy for waste photovoltaic modules," Renewable and Sustainable Energy Reviews, Elsevier, vol. 128(C).
    4. Felice, Alex & Rakocevic, Lucija & Peeters, Leen & Messagie, Maarten & Coosemans, Thierry & Ramirez Camargo, Luis, 2022. "Renewable energy communities: Do they have a business case in Flanders?," Applied Energy, Elsevier, vol. 322(C).
    5. Nancy Bocken & Lars Strupeit & Katherine Whalen & Julia Nußholz, 2019. "A Review and Evaluation of Circular Business Model Innovation Tools," Sustainability, MDPI, vol. 11(8), pages 1-25, April.
    6. Reindl, K. & Palm, J., 2021. "Installing PV: Barriers and enablers experienced by non-residential property owners," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).
    7. Best, Rohan & Chareunsy, Andrea & Taylor, Madeline, 2023. "Changes in inequality for solar panel uptake by Australian homeowners," Ecological Economics, Elsevier, vol. 209(C).
    8. Conradie, Peter D. & De Ruyck, Olivia & Saldien, Jelle & Ponnet, Koen, 2021. "Who wants to join a renewable energy community in Flanders? Applying an extended model of Theory of Planned Behaviour to understand intent to participate," Energy Policy, Elsevier, vol. 151(C).
    9. D'Adamo, Idiano & Gastaldi, Massimo & Morone, Piergiuseppe, 2022. "The impact of a subsidized tax deduction on residential solar photovoltaic-battery energy storage systems," Utilities Policy, Elsevier, vol. 75(C).
    10. Boccard, Nicolas & Gautier, Axel, 2021. "Solar rebound: The unintended consequences of subsidies," Energy Economics, Elsevier, vol. 100(C).
    11. Best, Rohan & Chareunsy, Andrea, 2022. "The impact of income on household solar panel uptake: Exploring diverse results using Australian data," Energy Economics, Elsevier, vol. 112(C).
    12. Vine, Edward, 2005. "An international survey of the energy service company (ESCO) industry," Energy Policy, Elsevier, vol. 33(5), pages 691-704, March.
    13. Garvin A. Heath & Timothy J. Silverman & Michael Kempe & Michael Deceglie & Dwarakanath Ravikumar & Timothy Remo & Hao Cui & Parikhit Sinha & Cara Libby & Stephanie Shaw & Keiichi Komoto & Karsten Wam, 2020. "Research and development priorities for silicon photovoltaic module recycling to support a circular economy," Nature Energy, Nature, vol. 5(7), pages 502-510, July.
    14. de Frutos Cachorro, J. & Willeghems, G. & Buysse, J., 2019. "Strategic investment decisions under the nuclear power debate in Belgium," Resource and Energy Economics, Elsevier, vol. 57(C), pages 156-184.
    15. Deng, Rong & Chang, Nathan L. & Ouyang, Zi & Chong, Chee Mun, 2019. "A techno-economic review of silicon photovoltaic module recycling," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 532-550.
    16. Petrovich, Beatrice & Carattini, Stefano & Wüstenhagen, Rolf, 2021. "The price of risk in residential solar investments," Ecological Economics, Elsevier, vol. 180(C).
    17. Best, Rohan, 2022. "Energy inequity variation across contexts," Applied Energy, Elsevier, vol. 309(C).
    18. Sovacool, Benjamin K. & Barnacle, Max Lacey & Smith, Adrian & Brisbois, Marie Claire, 2022. "Towards improved solar energy justice: Exploring the complex inequities of household adoption of photovoltaic panels," Energy Policy, Elsevier, vol. 164(C).
    19. Klein, Martin & Deissenroth, Marc, 2017. "When do households invest in solar photovoltaics? An application of prospect theory," Energy Policy, Elsevier, vol. 109(C), pages 270-278.
    20. Arnold Tukker, 2004. "Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 246-260, July.
    21. Wim Van Opstal & Anse Smeets, 2022. "Market-Specific Barriers and Enablers for Organizational Investments in Solar PV—Lessons from Flanders," Sustainability, MDPI, vol. 14(20), pages 1-26, October.
    22. De Boeck, L. & Van Asch, S. & De Bruecker, P. & Audenaert, A., 2016. "Comparison of support policies for residential photovoltaic systems in the major EU markets through investment profitability," Renewable Energy, Elsevier, vol. 87(P1), pages 42-53.
    23. Olivier De Groote & Frank Verboven, 2019. "Subsidies and Time Discounting in New Technology Adoption: Evidence from Solar Photovoltaic Systems," American Economic Review, American Economic Association, vol. 109(6), pages 2137-2172, June.
    24. Palm, A., 2020. "Early adopters and their motives: Differences between earlier and later adopters of residential solar photovoltaics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    25. Tadas RadaviÄ ius & Arvid van der Heide & Wolfram Palitzsch & Tom Rommens & Julius Denafas & Julius Denafas & Manuela TvaronaviÄ ienÄ— & Manuela TvaronaviÄ ienÄ—, 2021. "Circular solar industry supply chain through product technological design changes," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 3(3), pages 10-30, September.
    26. Jacksohn, Anke & Grösche, Peter & Rehdanz, Katrin & Schröder, Carsten, 2019. "Drivers of renewable technology adoption in the household sector," Energy Economics, Elsevier, vol. 81(C), pages 216-226.
    27. Lan, Haifeng & Gou, Zhonghua & Lu, Yi, 2021. "Machine learning approach to understand regional disparity of residential solar adoption in Australia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).
    28. De Groote, Olivier & Pepermans, Guido & Verboven, Frank, 2016. "Heterogeneity in the adoption of photovoltaic systems in Flanders," Energy Economics, Elsevier, vol. 59(C), pages 45-57.
    29. Bryan Bollinger & Kenneth Gillingham, 2012. "Peer Effects in the Diffusion of Solar Photovoltaic Panels," Marketing Science, INFORMS, vol. 31(6), pages 900-912, November.
    30. Engelken, Maximilian & Römer, Benedikt & Drescher, Marcus & Welpe, Isabell M. & Picot, Arnold, 2016. "Comparing drivers, barriers, and opportunities of business models for renewable energies: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 795-809.
    31. Griet Juwet & Laura Deruytter, 2021. "Territorial and institutional obduracy in regional transition: politicising the case of Flanders’ energy distribution system," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 14(2), pages 301-320.
    32. Noll, Daniel & Dawes, Colleen & Rai, Varun, 2014. "Solar Community Organizations and active peer effects in the adoption of residential PV," Energy Policy, Elsevier, vol. 67(C), pages 330-343.
    33. Bauwens, Thomas, 2019. "Analyzing the determinants of the size of investments by community renewable energy members: Findings and policy implications from Flanders," Energy Policy, Elsevier, vol. 129(C), pages 841-852.
    34. Benjamin HUYBRECHTS & Sybille MERTENS, 2014. "The Relevance Of The Cooperative Model In The Field Of Renewable Energy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(2), pages 193-212, June.
    35. Rai, Varun & Reeves, D. Cale & Margolis, Robert, 2016. "Overcoming barriers and uncertainties in the adoption of residential solar PV," Renewable Energy, Elsevier, vol. 89(C), pages 498-505.
    36. Dusonchet, L. & Telaretti, E., 2015. "Comparative economic analysis of support policies for solar PV in the most representative EU countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 986-998.
    37. Huijben, J.C.C.M. & Podoynitsyna, K.S. & van Rijn, M.L.B. & Verbong, G.P.J., 2016. "A review of governmental support instruments channeling PV market growth in the Flanders region of Belgium (2006–2013)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 1282-1290.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rafał Nagaj & Bożena Gajdzik & Radosław Wolniak & Wieslaw Wes Grebski, 2024. "The Impact of Deep Decarbonization Policy on the Level of Greenhouse Gas Emissions in the European Union," Energies, MDPI, vol. 17(5), pages 1-23, March.
    2. Wu, Jingwen & Qi, Yiyun & Guan, Xinyi & Wu, Xiaomin & Li, Hui, 2024. "Farmers’ attitudes and adoption preferences toward household solar photovoltaics: A survey from Guangdong Province in China," Renewable Energy, Elsevier, vol. 225(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wim Van Opstal & Anse Smeets, 2022. "Market-Specific Barriers and Enablers for Organizational Investments in Solar PV—Lessons from Flanders," Sustainability, MDPI, vol. 14(20), pages 1-26, October.
    2. Arnold, Fabian & Jeddi, Samir & Sitzmann, Amelie, 2022. "How prices guide investment decisions under net purchasing — An empirical analysis on the impact of network tariffs on residential PV," Energy Economics, Elsevier, vol. 112(C).
    3. Best, Rohan & Marrone, Mauricio & Linnenluecke, Martina, 2023. "Meta-analysis of the role of equity dimensions in household solar panel adoption," Ecological Economics, Elsevier, vol. 206(C).
    4. Rydehell, Hanna & Lantz, Björn & Mignon, Ingrid & Lindahl, Johan, 2024. "The impact of solar PV subsidies on investment over time - the case of Sweden," Energy Economics, Elsevier, vol. 133(C).
    5. Fabian Scheller & Isabel Doser & Daniel Sloot & Russell McKenna & Thomas Bruckner, 2020. "Exploring the Role of Stakeholder Dynamics in Residential Photovoltaic Adoption Decisions: A Synthesis of the Literature," Energies, MDPI, vol. 13(23), pages 1-31, November.
    6. Best, Rohan & Chareunsy, Andrea & Taylor, Madeline, 2023. "Changes in inequality for solar panel uptake by Australian homeowners," Ecological Economics, Elsevier, vol. 209(C).
    7. Palm, Alvar & Lantz, Björn, 2020. "Information dissemination and residential solar PV adoption rates: The effect of an information campaign in Sweden," Energy Policy, Elsevier, vol. 142(C).
    8. De Groote, Olivier & Gautier, Axel & Verboven, Frank, 2024. "The political economy of financing climate policy — Evidence from the solar PV subsidy programs," Resource and Energy Economics, Elsevier, vol. 77(C).
    9. Fabian Scheller & Isabel Doser & Emily Schulte & Simon Johanning & Russell McKenna & Thomas Bruckner, 2021. "Stakeholder dynamics in residential solar energy adoption: findings from focus group discussions in Germany," Papers 2104.14240, arXiv.org.
    10. Axel Gautier & Julien Jacqmin, 2020. "PV adoption: the role of distribution tariffs under net metering," Journal of Regulatory Economics, Springer, vol. 57(1), pages 53-73, February.
    11. Reeves, D.C. & Rai, V., 2018. "Strike while the rebate is hot: Savvy consumers and strategic technology adoption timing," Energy Policy, Elsevier, vol. 121(C), pages 325-335.
    12. Best, Rohan & Burke, Paul J., 2023. "Small-scale solar panel adoption by the non-residential sector: The effects of national and targeted policies in Australia," Economic Modelling, Elsevier, vol. 120(C).
    13. San-Martín, Enrique & Elizalde, Patxi, 2024. "Determinants of rooftop solar uptake: A comparative analysis of the residential and non-residential sectors in the Basque Country (Spain)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 203(C).
    14. Palm, A., 2020. "Early adopters and their motives: Differences between earlier and later adopters of residential solar photovoltaics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    15. Maren Springsklee & Fabian Scheller, 2022. "Exploring non-residential technology adoption: an empirical analysis of factors associated with the adoption of photovoltaic systems by municipal authorities in Germany," Papers 2212.05281, arXiv.org.
    16. Nepal, Rabindra & Best, Rohan & Taylor, Madeline, 2023. "Strategies for reducing ethnic inequality in energy outcomes: A Nepalese example," Energy Economics, Elsevier, vol. 126(C).
    17. Best, Rohan & Chareunsy, Andrea, 2022. "The impact of income on household solar panel uptake: Exploring diverse results using Australian data," Energy Economics, Elsevier, vol. 112(C).
    18. Hancevic, Pedro I. & Sandoval, Hector H., 2023. "Solar panel adoption among Mexican small and medium-sized commercial and service businesses," Energy Economics, Elsevier, vol. 126(C).
    19. Esplin, Ryan & Nelson, Tim, 2022. "Redirecting solar feed in tariffs to residential battery storage: Would it be worth it?," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 373-389.
    20. Du, Hua & Han, Qi & de Vries, Bauke & Sun, Jun, 2024. "Community solar PV adoption in residential apartment buildings: A case study on influencing factors and incentive measures in Wuhan," Applied Energy, Elsevier, vol. 354(PA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:182:y:2023:i:c:s0301421523003464. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.