IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v93y2018icp439-450.html
   My bibliography  Save this article

Crowdfunding for solar photovoltaics development: A review and forecast

Author

Listed:
  • Lu, Yujie
  • Chang, Ruidong
  • Lim, Suxann

Abstract

Solar Photovoltaics (PV) has become one of the major trends in the energy sector for the past decade. Due to the high upfront capital expenditure needed for solar installations, new investment models and financing options have emerged in recent years. While solar financing has received increasing attention, little research has been done to explore the use of crowdfunding for PV development. This study presents a review of the crowdfunding concepts in general and crowdfunding of renewable energy specifically, and provides a system dynamics model to simulate the development potential of Solar Crowdfunding (SCF) by taking Singapore as an example. The model simulated a three-stage SCF development including the determination of potential SCF adopters, factors affecting the adoption of SCF, and factors affecting the success of SCF. The results show that under different scenarios, SCF can potentially generate a cumulative amount of $177–278 million US Dollars by the end of 2050, accounting for 2.5–4% of the total cumulative funds needed for PV installations expected in the year 2050 in Singapore. This study enriches the existing studies on solar financing and provides references for policy makers, academics and industry practitioners interested in SCF.

Suggested Citation

  • Lu, Yujie & Chang, Ruidong & Lim, Suxann, 2018. "Crowdfunding for solar photovoltaics development: A review and forecast," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 439-450.
    • Handle: RePEc:eee:rensus:v:93:y:2018:i:c:p:439-450
    DOI: 10.1016/j.rser.2018.05.049
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032118303964
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2018.05.049?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. Li, Yun & Nie, Dan & Zhao, Xingang & Li, Yanbin, 2017. "Market structure and performance: An empirical study of the Chinese solar cell industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 78-82.
    2. Shukla, Akash Kumar & Sudhakar, K. & Baredar, Prashant & Mamat, Rizalman, 2018. "Solar PV and BIPV system: Barrier, challenges and policy recommendation in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3314-3322.
    3. Zhao, Zhen-Yu & Chang, Rui-Dong & Zillante, George, 2014. "Challenges for China׳s energy conservation and emission reduction," Energy Policy, Elsevier, vol. 74(C), pages 709-713.
    4. Mollick, Ethan, 2014. "The dynamics of crowdfunding: An exploratory study," Journal of Business Venturing, Elsevier, vol. 29(1), pages 1-16.
    5. Yuan, Hongping & Wang, Jiayuan, 2014. "A system dynamics model for determining the waste disposal charging fee in construction," European Journal of Operational Research, Elsevier, vol. 237(3), pages 988-996.
    6. Alan Tomczak & Alexander Brem, 2013. "A conceptualized investment model of crowdfunding," Venture Capital, Taylor & Francis Journals, vol. 15(4), pages 335-359, October.
    7. Chang, Rui-Dong & Zuo, Jian & Zhao, Zhen-Yu & Zillante, George & Gan, Xiao-Long & Soebarto, Veronica, 2017. "Evolving theories of sustainability and firms: History, future directions and implications for renewable energy research," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 48-56.
    8. Ozoegwu, C.G. & Mgbemene, C.A. & Ozor, P.A., 2017. "The status of solar energy integration and policy in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 457-471.
    9. Zhang, Sufang & He, Yongxiu, 2013. "Analysis on the development and policy of solar PV power in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 393-401.
    10. Othmar M. Lehner, 2013. "Crowdfunding social ventures: a model and research agenda," Venture Capital, Taylor & Francis Journals, vol. 15(4), pages 289-311, October.
    11. Karavezyris, Vassilios & Timpe, Klaus-Peter & Marzi, Ruth, 2002. "Application of system dynamics and fuzzy logic to forecasting of municipal solid waste," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 60(3), pages 149-158.
    12. Rathore, Pushpendra Kumar Singh & Rathore, Shailendra & Pratap Singh, Rudra & Agnihotri, Sugandha, 2018. "Solar power utility sector in india: Challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2703-2713.
    13. Egilmez, Gokhan & Tatari, Omer, 2012. "A dynamic modeling approach to highway sustainability: Strategies to reduce overall impact," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(7), pages 1086-1096.
    14. Zhao, Zhen-Yu & Chang, Rui-Dong & Chen, Yu-Long, 2016. "What hinder the further development of wind power in China?—A socio-technical barrier study," Energy Policy, Elsevier, vol. 88(C), pages 465-476.
    15. Cumming, Douglas J. & Leboeuf, Gael & Schwienbacher, Armin, 2017. "Crowdfunding cleantech," Energy Economics, Elsevier, vol. 65(C), pages 292-303.
    16. Zhao, Zhen-Yu & Chen, Yu-Long & Chang, Rui-Dong, 2016. "How to stimulate renewable energy power generation effectively? – China's incentive approaches and lessons," Renewable Energy, Elsevier, vol. 92(C), pages 147-156.
    17. Kar, Sanjay Kumar & Sharma, Atul & Roy, Biswajit, 2016. "Solar energy market developments in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 121-133.
    18. Giancarlo Giudici, 2016. "Equity Crowdfunding of an Entrepreneurial Activity," International Studies in Entrepreneurship, in: David Audretsch & Erik Lehmann & Michele Meoli & Silvio Vismara (ed.), University Evolution, Entrepreneurial Activity and Regional Competitiveness, edition 127, chapter 0, pages 415-425, Springer.
    19. Jin, Wei & Xu, Linyu & Yang, Zhifeng, 2009. "Modeling a policy making framework for urban sustainability: Incorporating system dynamics into the Ecological Footprint," Ecological Economics, Elsevier, vol. 68(12), pages 2938-2949, October.
    20. Ohunakin, Olayinka S. & Adaramola, Muyiwa S. & Oyewola, Olanrewaju. M. & Fagbenle, Richard O., 2014. "Solar energy applications and development in Nigeria: Drivers and barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 294-301.
    21. Kosorić, Vesna & Lau, Siu-Kit & Tablada, Abel & Lau, Stephen Siu-Yu, 2018. "General model of Photovoltaic (PV) integration into existing public high-rise residential buildings in Singapore – Challenges and benefits," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 70-89.
    22. Gordon Burtch & Anindya Ghose & Sunil Wattal, 2013. "An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-Funded Markets," Information Systems Research, INFORMS, vol. 24(3), pages 499-519, September.
    23. Pitschner, Stefan & Pitschner-Finn, Sebastian, 2014. "Non-profit differentials in crowd-based financing: Evidence from 50,000 campaigns," Economics Letters, Elsevier, vol. 123(3), pages 391-394.
    24. Shahsavari, Amir & Akbari, Morteza, 2018. "Potential of solar energy in developing countries for reducing energy-related emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 275-291.
    25. Sher, Hadeed Ahmed & Murtaza, Ali F & Addoweesh, Khaled E & Chiaberge, Marcello, 2015. "Pakistan’s progress in solar PV based energy generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 213-217.
    26. Ajay K. Agrawal & Christian Catalini & Avi Goldfarb, 2011. "The Geography of Crowdfunding," NBER Working Papers 16820, National Bureau of Economic Research, Inc.
    27. Urban, Frauke & Geall, Sam & Wang, Yu, 2016. "Solar PV and solar water heaters in China: Different pathways to low carbon energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 531-542.
    28. Tahir, Z.R. & Asim, Muhammad, 2018. "Surface measured solar radiation data and solar energy resource assessment of Pakistan: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2839-2861.
    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. Faten Ben Slimane & Antoine Rousseau, 2020. "Crowdlending Campaigns for Renewable Energy: Success Factors," Post-Print hal-02371926, HAL.
    2. Yue Meng & Haoyue Wu & Wenjing Zhao & Wenkuan Chen & Hasan Dinçer & Serhat Yüksel, 2021. "A hybrid heterogeneous Pythagorean fuzzy group decision modelling for crowdfunding development process pathways of fintech-based clean energy investment projects," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-34, December.
    3. Xue, Yan & Lindkvist, Carmel Margaret & Temeljotov-Salaj, Alenka, 2021. "Barriers and potential solutions to the diffusion of solar photovoltaics from the public-private-people partnership perspective – Case study of Norway," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    4. Vinay Virupaksha & Mary Harty & Kevin McDonnell, 2019. "Microgeneration of Electricity Using a Solar Photovoltaic System in Ireland," Energies, MDPI, vol. 12(23), pages 1-26, December.
    5. Chun-Yueh Lin & Yi-Hsien Wang, 2021. "Evaluating the Optimal External Equity Financing Strategy and Critical Factors for the Startup of Lending Company in Taiwan: An Application of Expert Network Decision Model," Mathematics, MDPI, vol. 9(18), pages 1-15, September.
    6. Deshmukh, Swaraj Sanjay & Pearce, Joshua M., 2021. "Electric vehicle charging potential from retail parking lot solar photovoltaic awnings," Renewable Energy, Elsevier, vol. 169(C), pages 608-617.
    7. Bose, A.S. & Sarkar, S., 2019. "India's e-reverse auctions (2017–2018) for allocating renewable energy capacity: An evaluation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 762-774.
    8. Chang, Ruidong & Cao, Yuan & Lu, Yujie & Shabunko, Veronika, 2019. "Should BIPV technologies be empowered by innovation policy mix to facilitate energy transitions? - Revealing stakeholders' different perspectives using Q methodology," Energy Policy, Elsevier, vol. 129(C), pages 307-318.

    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. Tanja Jovanović, 2019. "Crowdfunding: What Do We Know So Far?," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 1-25, February.
    2. Janice A. Hauge & Stanley Chimahusky, 2016. "Are Promises Meaningless In An Uncertain Crowdfunding Environment?," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1621-1630, July.
    3. Sven Siebeneicher & Ilker Yenice & Carolin Bock, 2022. "Financial-Return Crowdfunding for Energy and Sustainability in the German-Speaking Realm," Sustainability, MDPI, vol. 14(19), pages 1-23, September.
    4. Messeni Petruzzelli, Antonio & Natalicchio, Angelo & Panniello, Umberto & Roma, Paolo, 2019. "Understanding the crowdfunding phenomenon and its implications for sustainability," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 138-148.
    5. F. Levin, 2015. "Success Determinants Of Crowdfunding Projects," Review of Business and Economics Studies // Review of Business and Economics Studies, Финансовый Университет // Financial University, vol. 3(4), pages 79-87.
    6. Butticè, Vincenzo & Colombo, Massimo G. & Fumagalli, Elena & Orsenigo, Carlotta, 2019. "Green oriented crowdfunding campaigns: Their characteristics and diffusion in different institutional settings," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 85-97.
    7. Guillochon, Justine, 2022. "The role of media, policy and regional heterogeneity in renewable energy project crowdfunding," Energy Economics, Elsevier, vol. 115(C).
    8. Saurav Chandra Talukder & Zoltán Lakner, 2023. "Exploring the Landscape of Social Entrepreneurship and Crowdfunding: A Bibliometric Analysis," Sustainability, MDPI, vol. 15(12), pages 1-22, June.
    9. Laurell, Christofer & Sandström, Christian & Suseno, Yuliani, 2019. "Assessing the interplay between crowdfunding and sustainability in social media," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 117-127.
    10. Michael Marcin Kunz & Ulrich Bretschneider & Max Erler & Jan Marco Leimeister, 2017. "An empirical investigation of signaling in reward-based crowdfunding," Electronic Commerce Research, Springer, vol. 17(3), pages 425-461, September.
    11. Bagheri, Afsaneh & Chitsazan, Hasti & Ebrahimi, Ashkan, 2019. "Crowdfunding motivations: A focus on donors' perspectives," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 218-232.
    12. Andreas Hoegen & Dennis M. Steininger & Daniel Veit, 2018. "How do investors decide? An interdisciplinary review of decision-making in crowdfunding," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 339-365, August.
    13. Presenza, Angelo & Abbate, Tindara & Cesaroni, Fabrizio & Appio, Francesco Paolo, 2019. "Enacting Social Crowdfunding Business Ecosystems: The case of the platform Meridonare," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 190-201.
    14. De Crescenzo, Veronica & Botella-Carrubi, Dolores & Rodríguez García, María, 2021. "Civic crowdfunding: A new opportunity for local governments," Journal of Business Research, Elsevier, vol. 123(C), pages 580-587.
    15. Giancarlo Giudici & Massimiliano Guerini & Cristina Rossi-Lamastra, 2018. "Reward-based crowdfunding of entrepreneurial projects: the effect of local altruism and localized social capital on proponents’ success," Small Business Economics, Springer, vol. 50(2), pages 307-324, February.
    16. Susana Bernardino & J. Freitas Santos, 2015. "Financing social ventures by crowdfunding: the influence of entrepreneurs’ personality traits," NIPE Working Papers 12/2015, NIPE - Universidade do Minho.
    17. Jascha-Alexander Koch & Michael Siering, 2019. "The recipe of successful crowdfunding campaigns," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 661-679, December.
    18. Chan, C.S. Richard & Parhankangas, Annaleena & Sahaym, Arvin & Oo, Pyayt, 2020. "Bellwether and the herd? Unpacking the u-shaped relationship between prior funding and subsequent contributions in reward-based crowdfunding," Journal of Business Venturing, Elsevier, vol. 35(2).
    19. Thomas Clauss & Thomas Niemand & Sascha Kraus & Patrick Schnetzer & Alexander Brem, 2019. "Increasing Crowdfunding Success Through Social Media: The Importance Of Reach And Utilisation In Reward-Based Crowdfunding," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 1-30, May.
    20. Parker, Simon C., 2014. "Crowdfunding, cascades and informed investors," Economics Letters, Elsevier, vol. 125(3), pages 432-435.

    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:rensus:v:93:y:2018:i:c:p:439-450. 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/wps/find/journaldescription.cws_home/600126/description#description .

    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.