Professional Documents
Culture Documents
Zkaa 020
Zkaa 020
doi: 10.1093/ce/zkaa020
Advance Access Publication Date: 24 December 2020
Homepage: https://academic.oup.com/ce
Research Article
Abstract
The costs of clean-energy technologies are currently very high and their adoption in buildings is voluntary. This
study evaluated strategies for improving the cost performance of photovoltaic (PV) electricity applied in buildings
in Nigeria using a questionnaire survey involving 415 targets. The efficacy of each strategy and consensus
in respondents’ perceptions were determined using Fuzzy Set Theory and Kruskal–Wallis tests. The top four
strategies for achieving PV-cost reduction are mandating green buildings, standardization of building designs
and PV components, facilitating import licensing and massive public education. Developing these strategies to
improve the PV value chain will increase the supply capacity of clean energy in emerging markets.
Graphic abstract
Strong government
intervention
Education, training
and increased
awareness
adds to the quantity of emitted carbon [2]. The environ- energy performance [23]. Other studies, amidst the empir-
mental consequences of fossil-based electricity enhance ical gap, focused on reforms aimed at solving national and
the upsurge in the adoption of point-of-use-generated regional energy problems [5, 19]. The inclination towards
zero-carbon energy. Zero-carbon energy sources are re- regional policies in past studies suggested that the critical
newable and various sources of renewable technologies problems inhibiting adoption require context-based solu-
exist, but solar photovoltaic (PV) energy has gained wide- tions. Efforts to optimize the costs of Building-Integrated
spread approval in developing countries [3]. The expansion Photovoltaic (BIPV) systems [24] and the overall perform-
in renewable energy in Africa is further due to its contribu- ance of the BIPV systems [24–27] also exist, but the adop-
tion to increasing building energy efficiency, carbon reduc- tion of PV technologies is currently very low due to the
tion and aiding sustainable development goals [4–7]. The dearth of strategies to mitigate the perceived high costs.
silicon/polycrystalline silicon, amorphous silicon and and housing-loan policies are focal drivers [6]. Therefore,
thin-film technology of Copper Indium Diselenide (CIS) market development and the provision of incentives are
[30]. The mono-crystalline silicon is single-crystal silicon fundamental drivers to cost reduction [5].
and has the highest efficiency rating of >26.7% [31]. The Lawton [34] advanced five strategies for achieving eco-
polycrystalline silicon is more expensive than mono- nomic competitiveness in the PV market. The five strategies
crystalline silicon; cells are fabricated from a block of cast focused on new corporate and public reforms and financing
silicon. Polycrystalline silicon has a conversion efficiency options, standardization of designs, streamlining permit
of 22.3% [31]. The amorphous silicon has the lowest con- issues, utility regulation and mandating green buildings.
version efficiency amongst all PV technologies (10–15%). The study also proved that the early conception and in-
However, mono-crystalline technology is readily available corporation of a photovoltaic system in the design stage
promote a wider level of acceptance and to deepen under- The scope of achievable cost reduction and the validity of
standing of the technology and its benefits [37, 38]. PV pol- the cost-reduction strategies are imminent empirical gaps
icies and financing programmes are adequate to advance in the literature. This study seeks to validate the potency
activities directed at enhancing the ability of policymakers of PV-cost-reduction strategies using empirical data, since
to institute appropriate, proactive and integrated plans, the formative studies in the literature are non-empirical
which can ensure the development and sustenance of a research.
supportive business environment. Enhancing R&D is also
a strategic way to develop, strengthen and organize the
human-resource capacities of stakeholders [5]. Synergy
through partnership with international joint ventures
3 Research methodology
Design strategies
PCS1 Early conception and incorporation of photovoltaic system in the design stage [3, 40]
PCS2 Mandate Green buildings [41]
PCS3 Standardization of designs [34, 40]
PCS4 Promotion of new business practices and developers [42]
PCS5 Encourage PV supply chain cost framework collaboration of actors in the building sector, [37, 43]
professionals, manufacturers, vendors, clients, users and community
PCS6 Simplifying permits and inspections [34]
PCS7 Mandating solar power [3]
PCS8 Relax level of inspection, permits and regulations policies [25]
Financing strategies
PCS9 Provide financing incentives [34, 42]
PCS10 Develop and provide local content through research [26]
PCS11 Facilitate import licensing to check & improve purchasing power benefits [39, 44]
PCS12 Favourable tax policies [40, 45]
Education, training and research
PCS13 Massive public education and awareness campaign [24, 34]
PCS14 Promote research to encourage local production of non-hardware components [35, 46, 47]
PCS15 Provide real-time experiences for development in training and skills of stakeholders [26]
PCS16 Institute relevant standards and update as at when required [26]
PCS17 Set new guidelines for providing technical assistances to the industry [26, 38]
PCS18 Detailed and document barriers and opportunities to cost efficiency to maximized shared [26]
experiences
PCS19 Promote installers licensing and certification [45]
Ekung et al. | 5
knowledge of PV-cost-reduction strategies using key stake- based on a 0.85 cut-off point [46] and scores in the range
holder experiences. of 0.85–1.00 indicate full membership and a very high level
The research instrument, the PV Cost Optimisation of effectiveness. FST has diffused application in the de-
Strategies Questionnaire, was implemented to collect the termination of critical-performance indices within the re-
study’s data. The questionnaire consisted of two parts: search environment [54]. Overall, the research involved the
the first part contained questions relating to respondents’ five stages depicted in Fig. 1.
background information including the role of respond-
ents in the PV value chain, years of experience and educa-
tional qualifications; the second part elicited respondents’ 4 Results
perceived level of the effectiveness of identified PV-cost-
4.1 Characteristics of respondents
PCS1 Early conception and incorporation of photovoltaic system in the design 0.92 1.22 0.89 ✓
stage
PCS2 Mandate green buildings 1.32 1.79 0.97 ✓
PCS3 Standardization of designs 0.98 1.35 0.93 ✓
PCS4 Promotion of new business practices and developers 0.77 0.57 0.74 –
PCS5 Encourage PV supply chain cost framework collaboration of actors in the 1.01 1.10 0.87 ✓
building sector, professionals, manufacturers, vendors, clients, users
and community
PCS6 Simplifying permits and inspections 0.94 1.11 0.88 ✓
PCS7 Mandating solar power 1.11 1.42 0.93 ✓
PCS8 Relax level of inspection, permits and regulations policies 0.92 1.24 0.90 ✓
PCS9 Provide financing incentives 0.84 1.06 0.88 ✓
PCS10 Develop and provide local content through research 0.82 0.89 0.89 ✓
PCS11 Facilitate import licensing to check & improve purchasing power benefits 1.01 1.46 0.95 ✓
PCS12 Favourable tax policies 0.99 1.29 0.91 ✓
PCS13 Massive public education and awareness campaign 1.01 1.49 0.94 ✓
PCS14 Promote research to encourage local production of non-hardware 0.89 0.98 0.86 ✓
components
PCS15 Provide real-time experiences for development in training and skills of 1.04 1.32 0.93 ✓
stakeholders
PCS16 Institute relevant standards and update as at when required 0.89 0.36 0.67 –
PCS17 Set new guidelines for providing technical assistances to the industry 0.87 0.77 0.25 –
PCS18 Detail and document barriers and opportunities to cost-efficiency to 1.04 1.25 0.88 ✓
maximize shared experiences
PCS19 Promote installers licensing and certification 0.95 1.42 0.91 ✓
✓ = Effective; – = Not effective; MIS, mean item score; M(xi), degree of association to a set/critical performance.
the mass production of components to meet demand; the improve purchasing-power benefits (λ-cut, 0.95). A massive
economies of scale would instruct cost reduction. The solar public education and awareness campaign obtained a λ-
mandate would reduce costs by guaranteeing a customer cut score of 0.94 and emerged as the third most effective
base and promoting the benefit of economies of scale and strategy to improve PV costs. Strategies with a low level
design standardization. The second most effective strategy of effectiveness represent 16% of the surveyed PV-cost-
to optimize PV is to facilitate import licensing to check and optimization strategies. This band of PV-cost-mitigation
Ekung et al. | 7
strategies obtained λ-cut values less than the 0.85 bench- valorization of academic research related to PV technolo-
mark adopted by the study. The conclusion portrays their gies in practice within the study area. It also indicates a lack
level of effectiveness to decimate the costs of PV tech- of synergy between academia and industry in solving chal-
nologies as low. Strategies in this category include PCS4 lenges associated with the diffusion of the PV market in
(the promoting of new business practices and developers), the critical building sector. The study also draws attention
PCS16 (instituting relevant standards and updating them to the high level of effectiveness of PCS18, PCS9, PCS6 and
as and when required) and PCS17 (setting new guidelines PCS5 (Table 3). The result of PCS18 (detail and document
for providing technical assistance to the industry). Growth barriers and opportunities to cost-efficiency to maximize
drivers of PV-technologies adoption in the building sector shared experiences) is not a surprise; it is therefore con-
are therefore unconnected to new business culture, new sistent with the perception of respondents about PCS14.
installation costs, affiliated non-module hardware, and application are dependent on three fundamental goals.
taxes [34]. Soft-cost reduction requires sectoral or re- The three strategies were defined as prioritizing rooftop
gional innovation strategies [36]. Pertinent strategies for technologies, developing clear PV-integration policies
soft-cost reduction require demand and market growth, and enforcing renewable-energy deployment mandates.
interactions between supply-chain agents, education and The government can also provide incentives as the best
training, careful selection of systems and the production strategy to enhance the spread of solar homes [15]. Fina
of varieties, and institutional-capacity development [36]. et al. [57] concluded that government subsidies and finan-
The seven strategies align the philosophies of PCS4, PCS5, cial incentives are imperative to promoting active building
PCS10, PCS13 and PCS17-19 in Table 3. designs.
The strongest links to reducing the soft costs of PV tech-
training and skills of stakeholders) validate the import- The cost of PV systems is important for their selection
ance of this dimension. Deep awareness relies on exten- and integration into building-project development. Cost
sive education campaigns and capacity building. Studies determines the duration, quality of projects, profitability
have found seminars, workshops and information re- and the overall building costs [13]. This understanding
source databases to be significant practices in achieving places a premium on the need to achieve cost economy
an appropriate level of penetration. Sopian et al. [24] sup- in the application of PV technologies to optimize project
ported these tools to improve stakeholders’ level of com- duration, quality, profitability and building costs. The sig-
petence and the quality of work of the service providers. nificance of efficient regulatory apparatuses for PV-cost
Information services will further situate decision-makers reduction is consistent with the norms established across
to gain market opportunities towards enhanced policy ini- previous studies [14, 28]. The three framings of strong gov-
massive public education and the provision of real-time [12] Nwofe PA. Need for energy efficient buildings in Nigeria. Int J
experience-based training for installers. The strategies of Energy and Environ Research, 2014, 2:1–9.
[13] Mukherjee S, Gbosh PB. Estimation of carbon credit and direct
are also adequate to optimize the cost drivers associated
carbon footprint by solar photovoltaic cells in West Bengal,
with customer acquisition, permitting, inspection and li-
India. Int J of Low-Carbon Tech, 2014, 9:52–55.
censing, financing and the lack of incentives to importers, [14] Emodi NV, Ebele NE. Policies enhancing renewable energy de-
manufacturers and users. The development of future velopment and implications for Nigeria. Sustain Energy, 2016,
PV-market-penetration policies for developing countries 4:7–16.
should optimize these strategies for optimal results. The [15] Abdullah DZ, Shah T, Jebran K, et al. Acceptance and willing-
implementation of these strategies, however, requires ness to pay for solar home system: survey evidence from nor-
thern area of Pakistan. Energy Reports, 2017, 3:54–60.
phasing, and the specific comprehensive PV-diffusion goal
[32] Jelle BP, Breivik C. The path to the building integrated photo- CaGBC%20McGraw%20Hill%20Cdn%20Market%20Study.pdf
voltaic of tomorrow. Energy Procedia, 2012, 20:78–87. (16 November 2020, last date accessed).
[33] Shukla AK, Sudhakar K, Baredar P. Exergetic assessment of [46] Retzlaff R. Developing policies for green buildings: what can
BIPV module using parametric and photonic energy methods: the United States learn from the Netherlands? Sustain Science,
a review. Energy Build, 2016, 119:62–73. Practice & Policy, 2010, 6:28–38.
[34] Lawton, N. Shrinking Solar Soft Costs: Policy Solutions to Make [47] Hwang B, Zhu L, Wang Y, et al. Green building construction
Solar Power Economically Competitive. Portland, OR: Green projects in Singapore: cost premiums and cost performance.
Energy Institute, Lewis & Clark Law School, 2014. https:// Pro Manag J, 2017, 48:67–79.
law.lclark.edu/live/files/17499-shrinking-solar-soft-costs (14 [48] Enshassi A, Arain F, Tayeh B. Major causes of problems be-
October 2019, date last accessed). tween contractors and sub-contractors in the Gaza Strip. J of
[35] Kavlak G, McNerney J, Trancik JE. Evaluating the causes of Fin Manag of Property and Cons, 2012, 17:92–112.