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Factors driving Indian consumer’s purchase intention of roof top solar

Article in International Journal of Energy Sector Management · February 2019

DOI: 10.1108/IJESM-07-2018-0012

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Roof top solar

Factors driving Indian purchase
consumer’s purchase intention

intention of roof top solar

Ashwini Kumar Aggarwal, Asif Ali Syed and Sandeep Garg 539
Department of Business Administration,
Faculty of Management Studies and Research, Aligarh Muslim University, Received 22 July 2018
Revised 23 September 2018
Aligarh, India Accepted 12 November 2018

Abstract
Purpose – The solar energy sector has been growing with dramatic reduction in commercial pricing,
improved efficiencies and improved deployments/usage conveniences. The purpose of this study is to
understand the drivers of the purchase intent for rooftop (RT) solar. This will enable policymakers to improve
the penetration of this new and promising green technology.
Design/methodology/approach – This research leverages the framework of unified theory of
acceptance and use of technology 2 (UTAUT2) to identify and build a quantitative approach to identify
factors (and their relative impact on) the purchase intent of a domestic RT solar buyer. The 400 respondents’
field data were collected in Bangalore (a high RT solar penetration region) and Delhi NCR (relatively lower RT
solar penetration region).
Findings – The exploratory factor analysis study revealed that the consumers’ purchase intention of RT
Solar is shaped by seven main factors, namely, environmental concerns, social beliefs, hedonic motivation,
performance expectancy, price value, self-efficacy and effort expectancy, and that these factors explain
79.2 per cent of the field data. This study finds that social beliefs followed by effort expectance concerns are
key factors explaining approximately 20 per cent of the purchase intent each, while unit change in price value
beliefs explain about 18 per cent of the purchase intent.
Practical implications – Suggested policy measures include building on strengthening emergence of local
solar evangelist groups in the communities and easing effort expectance items (e.g. building legal, regulatory
frameworks and financial tools for solar penetration models such as renewable energy services companies).
Originality/value – This paper is the first attempt to model the consumer behavior of the Indian RT solar
photovoltaic buyer leveraging the UTAUT2.
Keywords Surveys, Solar, Residential, End-use models, Renewable energies, Regression,
Exploratory factor analysis, UTAUT2, Factors of purchase intent, Indian solar buyer, Rooftop solar
Paper type Research paper

1. Introduction
With the Jawaharlal National Solar Mission (2015), India has embarked on an ambitious
mission of “farming” 100 GWþ of solar power in India by 2022. It achieved 14 GW solar

This project is a part of PhD research on the solar purchase intent of a residential user in India. While
the scholar is supported by Applied Materials India Pvt Ltd (Indian Subsidiary of Applied Materials,
USA) under its continuous learning program, there is no involvement of applied materials in the International Journal of Energy
project work or in the reports/papers that result from it. This research did not receive any specific Sector Management
Vol. 13 No. 3, 2019
grant from funding agencies in the public, commercial or not-for-profit sectors. The research team pp. 539-555
thanks ARB Research for their excellent and systematic field survey/data collection and to various © Emerald Publishing Limited
1750-6220
industry stakeholders who have helped evolve this research with their valuable insights. DOI 10.1108/IJESM-07-2018-0012
IJESM installation base in the year ending FY’17, and its cumulative solar photovoltaic (PV)
13,3 installation base was 23 GW as of June 30, 2018. However, it has yet to see a traction on the
rooftop (RT) solar PV (SPV) [cumulative installations on March 31, 2018, at 2.5 GW vs RT
SPV target of 40 GW by 2022 (Bridge to India, 2018)].
The long-run success of the solar mission is when it evolves devoid of any state-
supported subsidy as a social revolution with social acceptance and use of solar
540 technologies. The shift to cleaner energy sources will be driven by addressing various
technical, financial and institutional constraints. The last frontier will be the human
resistance to change – and its acceptance of the solar technology.
It is important to understand various factors that impact a RT solar buyer’s purchase
intention. Understanding the same will enable appropriate policies, marketing programs
and confidence building measures for efficient, effective and faster penetration of solar on
the consumer’s RT.
In the context of this problem statement, this research targets the following objectives:
 to analyze and understand the various factors affecting the consumers’ adoption for
RT SPVs; and
 to examine the relative impact of these adoption factors on the purchase intention of
consumers of RT SPVs.

This research does a literature review to assess the behavioral models tested in the context
of solar technologies, specifically RT solar, and then defines a conceptual research
framework/model for the study. Field research in Delhi and Bangalore yielded data, which
were subjected to exploratory factor analysis and a linear regression analysis to uncover the
findings.

2. Review of literature
If one could identify variables that impact the adoption of a new technology such as RT SPV
in a target market and if one could predict adoption with a reasonable certainty, it could
dramatically reduce the product/technology adoption by decisive interventions. Researchers
have used a number of product/concept/technology adoption models, including theory of
reasoned action (Fishbein and Ajzen, 1980); theory of planned behavior (TPB) (Ajzen, 1991)
and, more recently, Unified Theory of Acceptance and Use of Technology 2 (Venkatesh
et al., 2012).
Essentially, the models attempt to treat the dependent variables of buyers’ purchase
intent as a function of contextual constructs and develop a predictable understanding of the
same for impactful marketing and policy decisions.
Yuan et al. (2011) studied the social acceptance of solar energy technologies in China from
the end-user perspective in Shandong Province. Their work showed a considerable high
level of social acceptance of solar water heaters (but not SPV), and income, age and
education of residents play a role in awareness and adoption of renewable technologies.
Zhang et al. (2012) investigated the barriers to diffusion of solar in Hong Kong. Key
barriers includes “high initial and repair cost,” “long payback period,” “inadequate
installation space and service infrastructure,” “lack of participation of stakeholders/
community in energy policy” and “lack of incentives by legislation and regulation.”
Hsu’s (2018) study of residential solar installations in California demonstrates that cities
with large population size, municipal utilities and high proportions of pro-environment-
educated constituents are more likely to adopt solar approval processes.
While these three studies have given an excellent insight into the potential barriers of
solar acceptance, they do not complete a behavioral model. Zhang et al. (2012) indicate
factors such as effort expectance and price value at work but do not mention any other Roof top solar
potentially relevant factors. purchase
Liu et al. (2013) focused on renewable energy (electricity) deployment in rural households
in Shandong Province. They used the analytical framework of TPB. It was found that the 84
intention
per cent of households’ choice would be influenced by their neighbor’s energy choice and
behavior pattern, clearly establishing an opportunity to diffuse the technology in rural
China, thus leveraging a cluster effect. The results also show that rural residents are
generally supportive of renewable energy development given its positive impacts on the 541
environment. A stated willingness to pay more for renewable electricity is taken as a
variable representing an individual’s behavioral intention. The probability of occurrence of
positive intention is found to increase with an increase in household income, individual
knowledge level and belief about costs of renewable energy use but decrease with an
increase in individuals’ age. Residents with a higher level of income are more likely to be
willing to pay more for green electricity, so are younger people. Enhancing awareness,
knowledge and understanding about renewable energy (e.g. the cost-benefit analysis) would
be conducive to win public acceptance of renewable energy deployment.
Dianshu et al. (2010) assessed household electricity savings and consumer behavior in
Liaoning Province of China. Li et al. (2013) applied the TPB to suggest interventions to
introduce solar houses to Chinese farmers and stimulate market activities.
Pillai and Banerjee (2007) gave a theoretical framework for estimating the potential for
solar water heating in a target area with an illustration for a synthetic area in India of 2 km2
area and a population of 2,000. However, their approach, though quantitatively assessing
the potential, is limited in scoping the diffusion barriers and enablers in the estimation.
More recently, Parkins (2018) validated that the purchase intent of a Canadian solar
buyer is influenced by visual exposure to solar technology, public engagement and
perceived knowledge (beliefs and habits). Their analysis, that the visibility of solar
technology has a significant strong effect on intention, lends support to social learning and
social network theories of diffusion.
Urpelainen and Yoon (2017) investigated the role of product demonstrations in creating
the market for solar technology in rural India. They established that the demonstrations did
not increase sales but improved awareness, but the availability of credit was the key
enabler. In the communities (villages) where credit was facilitated, sales were significantly
better.
Aklin et al. (2018) studied the social acceptance of solar electricity in rural communities in
northern India. Their sample of 3,208 villagers brought out the undercurrents of possible
exploitation by private business, and the relative cost of solar energy vs conventional grid
energy could limit the social acceptance.
An interesting analysis by Palm (2018) tracked the motives and barriers driving the
Swedish household installations of solar panels across a 10-year time period. Specifically,
the learnings over time were as follows:
 (mis)Trust in the technology was replaced with the (need for) trust in the vendor; the
challenge is to get a trustworthy, professional, competent installation company.
 Over a period of time, several prosumers emerge in the market. Such prosumers
need facilitators for assistance in navigating in the market – who could give neutral
and objective inputs to facilitate a decision.

Large-scale technology diffusion trends emerge over time from household-level decisions,
based on consumer attributes, market drivers and complex interactions with other
consumers via social networks. Adoption of solar technology in a population occurs over
IJESM time, producing positive feedback through social networks. Robinson et al. (2013) created a
13,3 GIS-integrated agent-based model of residential solar PV diffusion through heterogeneous
population of interconnected consumers by integrating adopter characteristics, social
network structure and decision-making processes.
Through analysis of empirical data, it was observed that home value and number of
existing adopters within 1,500 ft are significant explanatory variables in calculating the
542 odds that a given household will adopt SPV technology.
Saleh et al. (2014) reviewed a unified theory of adoption and use of technology model
(UTAUT) to study the adoption of Solar Water Heater Systems in Libya. The UTAUT
model takes intention to use solar water heating system (SWHS) as the dependent variable,
which is determined by the following four factors:
(1) Performance expectancy: It measures how much households perceive a system,
such as SWHS, useful in achieving household goals in terms of lowering their
electricity bills and contributing to reduce use of limited natural resources.
(2) Effort expectancy: It measures how much individuals feel comfortable in using the
system and ease to adopt.
(3) Social Influence: It measures influence of others’ opinions about the acceptance and
usage of new technology.
(4) Attitude toward usage: This measures the degree to which households overall react
to the use of an SWHS system.

These factors are tempered by awareness/knowledge and environmental concerns.

It is observed that the research conducted in this context has provided essential
exploratory themes. Use of TPB develops initiating models of consumer behavior but does
not do a comprehensive exploration of potential factors. On the other hand, Saleh’s work in
Libya on testing the unified theory of acceptance and use of technology 2 (UTAUT2) for
adoption of SWHS has clearly provided a breakthrough in predictability, but it needs to be
tested in a new geographic/socio-cultural context like India and for a new product category
like RT SPV.
Clearly, there is a research gap and a latent need for developing a UTAUT2-based model
for the purchase intent of an RT SPV buyer in the Indian context.

3. Conceptual framework and model

The notable refinement in UTAUT2 (Venkatesh et al., 2012) is to evolve the model to
consumer use context by adding additional constructs of hedonic motivation (enjoyment),
price value (because consumers are individually impacted by/involved in price-cost
decisions) and habit. As shown in Figure 2, the behavior intent is moderated by age, gender
and experience. From a practical stand-point, the rich understanding gained can help the
stakeholders in the Indian RT solar industry and create more effective policies and more
efficient marketing programs to increase solar penetration and take it mainstream
(Figure 2).
In Figure 3, we evolve the UTAT2 research model with constructs against each belief
and then further map the possible variable types.

4. Research methodology
Literature survey helped identify possible constructs for various factors. Further discussion
with solar industry practitioners and government officials driving the Indian solar program
enhanced the construct item base (Figure 3). These were further tested in elicitation studies
 Roof top solar
purchase
intention

543

Figure 1.
Scree plot

Figure 2.
UTAUT2 research
model with additional
contextual variables
of hedonic
motivation, price
value, habit and
moderating variables

and exploratory pilots to get a questionnaire with acceptable construct reliability (Cronbach
alpha = 0.80).
The final research instrument was a structured Optical Mark Reader (OMR) questionnaire
designed for a large-scale survey with high usability, reliability and validity. Hindi (local
language) translation was also prepared and pre-tested to facilitate communicability.
IJESM Belief type Construct Possible Variable items
13,3 Awareness Awareness Overall awareness of solar PV

Habits Green Habits/ Belief in the impact of global warming and climate change
Environmental Concern Green habits of the stakeholders

Performance Expectancy Mul-item ulitarian variables

544 Exisng solar usage related percepons
- funconal, praccal, economical, sensible, effecve
percepons of compability of funconal values

Hedonic Movaon Mul-item hedonic variables

- perceived hedonic movators in RT SPV buying like
dull/excing, sensuous, happy, agreeable, pleasant etc
Atude

Effort Expectancy Perceived effort percepons on installaon

Atude to Usage Percepons on Government benefit realizaon
Percepons on usage effort

Value Percepons of economic benefits/ viability

(price-economic-other benefits) Percepons about value of government benefits
Percepons about other usage benefits

Subjecve norms Social Influencer Adoptor psyche on new product/tech usage

Consumers informaon seeking preferences
RT solar social environment and percepons
Consumer independent judgement making

Perceived Behavior Control Facilitang Condions percepons on financial viability/availability

Percepons on instalaon resources/ experse
Percepon of switching cost
Other constraining percepons

Actual Behavior control roof access/ installaon rights

funding capability
Loan taking capability
Willingness to review RESCO /OPEX model

Behavior Intenon Purchase Intent An actual user, early adoptor, procrasnator, non-adoptor
Figure 3.
Evolving the Moderang Variables Age
UTAT2-based Gender
research model with Educaon
Income
constructs and Solar Usage history
indicative variables City

In total, 200 respondents were targeted in each of the cities (total 405 responses from
Bangalore and Delhi/NCR). Bangalore has a higher RT solar water heater system
penetration than Delhi/NCR. RT SPV is relatively new for both the cities. Sampling
methodology was “stratified convenience sampling.” In Delhi, the strata were selected based
on the circle rates of the city. Bangalore was divided into five regions, and then samples
were drawn from the same. Focus was to reach a homeowner who had roof-rights. This, to a
great extent, eliminated apartment owners. In each of the strata, sample selection was
determined by the convenience of response. Phone contacts were recorded and a random
check was undertaken to ensure the quality of response and survey technique. Care was
taken to maintain a spread in the stratified sampling across the two cities to get as accurate
a representation of the sample as possible.
 Factor analysis as a procedure requires a large sample size. A thumb rule (Chawla and Roof top solar
Neena, 2011) used in practice is that the size of the sample is at least four to five times the purchase
number of variables (number of statements/items). On the basis of literature review, this intention
research used a sample size of 405, which is over ten times the number of items (38) in the
final scale. As the research has established normality for the population in the descriptive
statistics (also verified in Figure 5) and the basic sample size and data type criteria for factor
analysis are met, this research moves to the next stage in the procedure. 545
5. Results and discussions
5.1 Factor analysis: adoption factors
To achieve the first objective of this study, the UTAT model has been selected as the
baseline to understand the constructs defining a consumer’s adoption toward RT SPV
purchase intention. The 37 statement items pertaining to the constructs as per the UTAT
model were subjected to exploratory factor analysis (using the technique of principal
component analysis, PCA). This will also ascertain the applicability of the UTAT model,
which is widely accepted, in explaining the consumer’s adoption in case of RT SPVs.
At the onset, it is pertinent to check whether the data set was suitable for factor analysis.
This was checked using the Kaiser–Meyer–Olkin (KMO) and the Bartlett tests, which yielded
desirable values to proceed further with factor analysis. The KMO measure of sampling
adequacy was 0.917, above the commonly recommended value of 0.6, and Bartlett’s test of
sphericity was significant x 2 = 11,046 and significance was p = 0.000 (p < 0.05) (Table I).
The result of exploratory factor analysis is presented in Table II.
According to Table II, the total variance accounted by the seven factors extracted through
the PCA is 69.7 per cent. The seven factors that are primarily accounting the consumers’
adoption of RT SPVS are also represented through the Scree Plot given in Figure 1.
Further, the results of the rotation component matrix, as mentioned in Figure 4, show
factor loadings that explain how the variables weighted for each factor and expressed the
correlation between variables and the factor.
The summary result of the factor analysis showing consumers’ adoption of RT SPVs is
represented in Figure 4.
The study revealed that consumers’ adoption of RT SPVs is shaped by seven main
factors, namely, performance expectancy (PE), environmental beliefs (EVB), hedonic
motivation (HM), price-value beliefs (PV), social beliefs (SB), self-efficacy (SE) and effort
expectancy (EE). These seven factors yield an explanation of 69.70 per cent of the variance
of the total data (Table III).

5.2 Regression analysis: factors impacting purchase intention of rooftop solar photovoltaics
It is imperative to quantitatively link the adoption factors with the purchase intention of the
consumers as purchase intention is considered a precursor to purchase behavior. By
appropriately addressing these adoption factors, the solar stakeholders can aim to improve
their penetration of this potent, emerging market opportunity.

KMO measure of sampling adequacy 0.917

Bartlett’s test of sphericity Approx. Chi-Square ( x 2) 11,046.365 Table I.
df 703 KMO and Bartlett’s
Sig. 0.000 test
IJESM Extraction sums of Rotation sums of
13,3 Initial Eigenvalues squared loadings squared loadings
% of % of % of
Component Total variance Cumulative (%) Total variance Cumulative (%) Total variance

1 11.491 30.238 30.238 11.491 30.238 30.238 4.880 12.842

2 4.697 12.361 42.599 4.697 12.361 42.599 4.866 12.804
546 3 3.212 8.453 51.052 3.212 8.453 51.052 4.437 11.677
4 2.402 6.322 57.374 2.402 6.322 57.374 4.428 11.652
5 1.677 4.414 61.788 1.677 4.414 61.788 3.165 8.329
6 1.584 4.169 65.956 1.584 4.169 65.956 2.508 6.601
7 1.423 3.745 69.701 1.423 3.745 69.701 2.202 5.795
8 1.232 3.241 72.942
9 0.742 1.953 74.895
10 0.669 1.761 76.657
11 0.626 1.647 78.304
12 0.564 1.485 79.789
13 0.529 1.391 81.180
14 0.514 1.352 82.533
15 0.493 1.298 83.830
16 0.440 1.157 84.988
17 0.422 1.112 86.100
18 0.389 1.023 87.122
19 0.380 1.000 88.123
20 0.365 0.961 89.084
21 0.359 0.945 90.029
22 0.339 0.892 90.921
23 0.329 0.865 91.786
24 0.308 0.811 92.597
25 0.294 0.774 93.371
26 0.288 0.758 94.129
27 0.281 0.740 94.870
28 0.249 0.656 95.526
29 0.232 0.612 96.138
30 0.214 0.562 96.700
31 0.202 0.531 97.231
32 0.178 0.469 97.700
33 0.177 0.465 98.165
34 0.169 0.446 98.611
35 0.153 0.403 99.014
Table II. 36 0.145 0.381 99.395
Total variance 37 0.128 0.337 99.732
explained 38 0.102 0.268 100.000

To achieve the second objective of this study, i.e. to examine the relative impact of
consumers’ adoption factors on their purchase intention, multiple regression analysis was
administered and the results are stated in the following paragraphs. Prior to this, the
assumptions underlying the multiple regression tests, i.e. normality and multicollinearity,
were diagnosed, and it was found fit for the results of this study (Figure 5).
The results of the multiple regression analysis show that the consumers’ adoption factors
for RT SPVs were predictors of purchase intention (p = 0.000), with an adjusted R2 value of
0.792 (Table IV). It means that 79.2 per cent of sample is closely fitted to the regression line.
It indicates that this model explains that more variability of response data falls around its
mean. Table V shows the result of ANOVA between the predictor variables with respect to Roof top solar
the purchase intent (dependent variable) and establishes a significant statistical relationship purchase
between the two (significance: p = 0.000 < 0.05) (Table VI). intention
5.3 Interpretation
The results of ANOVA (Tables III-V) reveal that the regression factors have an R2 of 79.2,
(df = 7, 397), F = 215.920 and significance p = 0.000, 0.05. Clearly, all the UTAUT2 547
%
Factor Name of
Item Statements Variance
Loadings Dimension
explained
RT SPV is practical and will
PE1 reduce dependence on grid 0.798
power
Operates easily with little
PE2 0.823
intervention once setup
PE3 Is as safe as grid or DG Power 0.856
Practical power option that Performance
30.238
Expectancy
PE4 reduces dependence on grid 0.859
power is desirable
Easy operation with little

PE5 intervention post setup is 0.83

desirable

PE6 Electric safety is important 0.775

I take steps to reduce my

EVB3 contribution to global 0.759

warming/pollution
RT SPV will be a pollution free
EVB4 0.86
energy source
RT SPV will replace DG Sets (&
EVB5 0.892
reduce diesel fumes)
It will reduce global warming / Environmental
12.361
EVB6 0.816 Beliefs
climate change
Pollution free energy source is
EVB7 0.864
desirable
Reduction of diesel fumes is
EVB8 0.741
desirable
Global warming climate change
EVB9 0.796
is undesirable

HM1 RT SPV Purchase / installation 0.702 Hedonic 8.453

will be an exciting experience Motivation
beliefs
I will be happy to install a RT
HM2 0.819
SPV
Satisfying to be among the first
HM3 0.805
to install a SPV
Purchase / installation should be
HM4 0.818
an exciting experience
I should feel happy about a
HM5 0.787
purchase experience
Figure 4.
I like to try a new product before
HM6 0.749 Factor analysis for
others do
components and
variation
(continued)
IJESM PV1
RT SPV is a practical, cost-
0.674
effective option to a DG Set
13,3 PV2 Gives affordable electricity 0.826
Government incentives make it
PV3 0.762
economically viable
Price Value
6.322
Practical, cost effective power beliefs
PV4 0.714
option to a DG set is important
548 PV5 Electricity should be affordable 0.811
Economic viability of RT SPV is
PV6 0.838
important
I always ask a friend about his/

SB1 her experience with a new 0.774

product before I buy
If my neighbor has a positive

SB2 experience with RT SPV, I will 0.748

be inclined to buy as well Social Beliefs 4.414
People who matter to me

SB3 (Friends, family, neighbors) 0.748

think I should install a RT SPV
It matters to me what people
SB4 0.749
matter to me think

SE1 I can fund my RT SPV if I 0.712 Self-efficacy 4.169

wanted Beliefs
It will be easy to get an
SE2 experienced, competent RT SPV 0.667
installer
I can install a RT SPV without
SE3 0.672
losing control/ access of my roof
It is important to me that I
SE4 0.669
control / access my roof
RT SPV can be installed easily
EE1 0.669
in my house
Effort
RT SPV will work with my Expectancy 3.745
EE2 0.739 beliefs
household appliances
Figure 4. RT SPV is easy to maintain
EE3 0.735

constructs have a statistically significant relationship with purchase intent (dependent

variable) as p = 0.000 < 0.05.
It can be further interpreted that social beliefs (beta = 0.240) account for the maximum
significant variance in purchase intention. This is followed by effort expectancy (beta =
0.235), which accounts for another 20þ per cent variance in purchase intention. Price Value
beliefs have a beta of 0.211. These are followed by performance expectancy (beta = 0.191);
hedonic motivation beliefs (beta = 0.176); environmental behavior (beta = 0.169) and self-
efficacy (beta = 0.122).
The linear regression equation model can be drawn up as:-
Y ¼ a þ b 1 x1 þ b 2 x2 þ b 3 x3 þ . . .
Here:
Y is the dependent variable;
a is the regression constant;
b 1, b 2, b 3 . . . are the regression beta values; and
x1, x2. . . are independent variables or predictors.
Factor Factor description
Roof top solar
purchase
Environmental concern Measures the degree of environment concern, underlying environmental intention
beliefs and actual green habits that the consumer has
Social beliefs Measures influence of others on acceptance and usage of technology
Hedonic motivation Measures the influence of hedonic (emotive) parameters on the consumer
purchase decision
Performance expectancy Measures how practical, safe and easy-to-operate the households believe 549
a RT solar usage will be
Price-value Measures the cost perceptions and the perceived economic utility
Self-efficacy Measures the perceived degree of ease in installing the RT solar Table III.
Effort expectancy Measures how much comfortable the residential RT solar buyer feels in Descriptions of
using the system and ease to adopt extracted factors

Figure 5.
Histogram and
normality plots

Purchase Intention ¼ 0:686 þ ð0:240 x Social BeliefsÞ

þ ð0:235 x Effort Expectancy BeliefsÞ
þ ð0:211 x PriceValue BeliefsÞ
þ ð0:191x Performance Expectancy BeliefsÞ
þ ð0:176 x HedonicMotivation BeliefsÞ
þ ð0:169 x Environmental BeliefsÞ þ ð0:122 * Self Efficacy beliefsÞ

In other words, it can be stated that:

 As social beliefs increase by 1 unit, purchase intent increases by 0.240 units, and if
self-efficacy improves by 1 unit, purchase intent increases by 0.122 units.
 This research observes that the most dominant factor affecting purchase intention is
social beliefs to the extent that unit change in it effects 20.5 per cent (beta = 0.24024/total
= 1.168) change in the purchase intention as per the regression equation. Similarly, self-
efficacy beliefs influence the least, with a unit change in it effecting approximately 10 per
cent (beta = 0.122/total = 1.168) change in purchase intention.
IJESM 6. Conclusions and policy implications
13,3 A core question facing policymakers and marketers of RT solar relates to the key trigger of
purchase intent for a residential RT solar buyer. Does he buy because he is buying a green
product, an environmentally safer product? Is he really concerned about the environment
and is that the value proposition to build to him? Or does he buy because of economic
advantages and performance expectancy of the RT solar? Or is there another trigger for his
550 purchase intent?
First exercise of factor extraction clearly shows that there are multiple triggers (factors)
that influence his purchase intention. This study concludes that the UTAUT2 constructs are
significant adoption factors affecting the purchase intention for RT SPVs. Specifically,
following factors have a dominant impact on the purchase intention (in order of priority):
social beliefs, effort expectancy, price value beliefs, performance expectancy beliefs, hedonic
motivations, environmental beliefs and self-efficacy beliefs.
Social beliefs (and subjective norms) are key factors of purchase intent. Developing a
favorable word-of-mouth for the solar technologies in the immediate communities will have
a positive impact on the purchase intent. Creative marketing programs targeting sector-wise
community penetration will be more effective than a shot-gun, spray-and-pray approach.

Model R R square Adjusted R square Std. error of the estimate

1 0.890 0.792 0.788 0.29439

Table IV. Notes: Predictors: (Constant), Environmental Beliefs, Social Beliefs, Hedonic Motivation, Performance
Model summary Expectancy, Price Value, Self-Efficacy and Effort Expectancy; Dependent Variable: Intention

Model Sum of squares df Mean square R Sig.

1
Regression 130.991 7 18.713 215.920 0.000
Table V. Residual 34.407 397 0.087
ANOVA Total 165.398 404

Unstandardized coefficients Standardized coefficients

Model B Std. error Beta ( b ) t Sig.

1
(Constant) 0.686 0.150 4.572 0.000
EVB_Mean 0.202 0.028 0.169 7.137 0.000
PE_Mean 0.197 0.029 0.191 6.693 0.000
Hedonic_Mean 0.143 0.025 0.176 5.729 0.000
EE_Mean 0.165 0.020 0.235 8.353 0.000
Table VI. PV_Mean 0.174 0.025 0.211 6.984 0.000
Regression SB_Mean 0.177 0.021 0.240 8.611 0.000
coefficients for the SE_Mean 0.139 0.033 0.122 4.190 0.000
predictor variables Total 1.168
This research recommends the following elements in a focused marketing program Roof top solar
targeting the above profile: purchase
(1) Policy focus to develop a solar community organization; Current government intention
programs are aimed at creating solar cities. There is a need to get into more details
and create community wise solar programs.
(2) Build on early adopters as solar champions.
(3) Use the solar champions in referral communications targeting communities with 551
appropriate social media campaigns. This thesis and related academic works
indicate a strong latent purchase intent lever in the proposition “Your neighbor is
using solar successfully”.
(4) Develop community solar installation programs:
 Explore renewables services company (RESCO) (operating expense model with
a renewable energy services company investing in CAPEX) for a leveraged
execution across a solar community organization.
Formal and informal RT solar evangelist groups can be promoted in communities to
successfully leverage trusted peer networks. Study of solar community organizations (SCOs)
by Noll et al. (2014) records the success of such SCOs when coupled with complete
information and financial-tools packages for use by community members.
Addressing effort expectance beliefs can also improve the purchase intention for RT SPV –
and the regression results show that this factor is just marginally lower in its impact vs social
beliefs (b EE = 0.235 vs b SB = 0.240). Effort expectancy construct measures the ease with
which the prospective RT solar buyer expects the RT SPV to integrate in his home and life-
style. It is important for users to see RT SPV as a product that can be installed easily in their
house, easy to maintain and a product that will work seamlessly with their existing appliances.
Other features are:
 easy integration into the home grid;
 battery backup support to provide for electricity when solar farming is constrained
(night or clouds);
 maximize out-of-box experience with trained staff; and
 well-engineered execution.

This is critical as a good solar installation is much more than good components delivered at
a user site. Each site is a separate mini-project where the near-and-far shadow analysis of
each RT with its parapets’ shadow points has to be studied and engineered into the site
design. A good RT SPV site deployment involves an intelligent simulation and engineering,
appropriate civil engineering to deploy the structures and mechanical fitment of the
components. Finally, it needs a qualified and trained electrician to complete the grid
connections. Use of well-drafted site engineering using software such as PV Syst, Helio-
scope or Skellion with Sketchup can build the end-user comfort and address effort
expectance concerns.
A related issue is the impact of price value beliefs. RT solar involves a significant capex
investment, and the customer return on investment (ROI) is subject to realizing the target
energy generation and savings over the years. This needs to be addressed by the use of an
appropriate, detailed site study and proposals by solar vendors to build their case with the
prospective users. Possible policy measures to address the customer will be to explore a
RESCO model for solar penetration. RESCO would operate as a third-party operator,
IJESM installing the RT solar with an upfront capex, while recovering electricity charges from the
13,3 customer. Policy measures to enable it could include enabling the legal framework for such
agreements to proliferate successfully and creating net metering policies to facilitate feed of
excess harvested energy into grid.
By definition, RT SPV in residential communities is a distributed micro project. To
enable scale and competitive services, it is critical for building innovative approaches for
552 cost-effective execution. Delhi Government is planning to experiment with clustering – a
concept where zone-specific solar installer contracts would be enabled to ensure critical
mass for competitive servicing. This would also leverage the power of the first construct –
the social beliefs and the influence of a known solar user – in enabling a chain reaction in the
solarization of the community.
Another important adoption factor for purchase intention is performance expectancy.
This implies that consumers weigh and take informed decisions on various performance
aspects of RT SPVs before intending to buy it. These pertain to aspects such as reduced
dependence on grid or DG power, operational ease with little intervention and electrical
safety as grid or DG power. These features must be integrated into the core product
proposition if the RT SPVs have to embark on the consumer’s adoption pathways.
Hedonic motivation construct measures the emotive (hedonic motivation) drivers of the
consumer purchase decision. Some enablers that can be put in place to address this include:
 Building a solar champion program: This will build a proposition for an early
adopter; enable him to take a continuous follow thru engagement via blogs,
newsletters and workshops. It will also be able to mine his propensity of being a
first mover by evolving as an advocate in his community and be seen as a pioneer.

Environmental belief construct measures the degree of environmental concern, underlying

environmental beliefs and actual green habits of the consumer.
Supporting steps to build on this could be as follows:
 Programs that strengthen the position of RT solar as a green product vis-à-vis
competing products such as diesel generating sets: Policies that constrain or penalize
the use of fossil fuel based back up products while incentivizing the use of RT SPV
will help in building the purchase intent of the residential users.

For managers and policymakers, these interventions could dramatically reduce the product/
technology adoption costs/efforts by decisive interventions. This is one of the key
contribution of this research to the managerial practice.

7. Research contribution to theory

Apart from the discussed managerial and policy implications of this research, this research
contributes to the existing body of knowledge by providing a behavioral model for the
acceptance of RT SPV technologies by Indian residential RT solar buyers. The following list
highlights the significant contribution to knowledge made in this research:
 Significant RT SPV purchase intent factors (UTAUT2 constructs) were identified
for the Indian context.
 A better predictability (R2 = 79.2 per cent) of the RT SPV purchase intent/acceptance
was established.
 Significant constructs relating to RT SPV purchase intent were developed. Habit
construct in UTAUT2 was adapted as an environmental belief variable for the study.
  A refined, reliable OMR survey instrument was developed. This can be used in Roof top solar
further studies across different urban/rural/geographic cities to evolve a measure of purchase
the purchase intent. It enables a longitudinal analysis of the societies’ evolution as it
discovers and deploys distributed, residential RT SPV. intention

This research study clearly extends academic studies in the field of technology acceptance
in the Indian context and validates a new way to look at the behavioral intent of an Indian
residential RT solar buyer. 553

7.1 Unified theory of acceptance and use of technology 2 applicability for rooftop solar
photovoltaic house-hold buyer behavior
Specifically, UTAUT2 has been a relatively new technology acceptance model in the field of
behavioral studies. Literature review indicates that this is the first study investigating the
feasibility of UTAUT2 in the Indian context and for examining the purchase intent of the
Indian residential RT solar buyers. This thesis validates UTAUT2 and its postulated
theoretical independent variables in the context of an Indian (household) residential RT
solar buyer.

7.2 New construct

Specifically, the construct of Habit in UTAUT2 was evolved in this study to environmental
beliefs. Original questionnaire (research framework) had several items to measure green
habits, environmental awareness and environmental concerns. Green habit items were
found to have lower weights than other items in confirmatory factor analysis. Over
progressive iterations, these were trimmed to create the environmental belief construct. The
revised construct captures the environment concern as a more significant construct
elements than green habits. Green habits that were not linked to RT solar were seen to have
little weight on the environment belief construct. The revised environment belief construct
also delivered a high reliability and was statistically significant in the quantitative analysis.

7.3 Literature review, research methodology, tools and techniques

This research provides a model for those wanting to conduct similar projects. It can be used
to help select appropriate research models, methodologies and survey instruments. The
body of knowledge uncovered in the literature review is documented in an appropriate
EndNote file and can facilitate a future researcher.
Similarly, the notes on research methodology and the final research instrument – it was
empirically validated with a high reliability Cronbach alpha – are assets for a future
researcher. Moreover, the research instrument used is designed as an OMR form for high
usability by both the respondent and the researcher with its capacity for high-speed data
extraction from a normal data scanner.

8. Limitations and future research directions

This exploratory study is limited to the metropolitan cities of Delhi/NCR and Bangalore. It
will be relevant to evolve the research to map the differences between rural and urban
penetrations. It is likely that the rural market will have a different acceptance/prioritization
of inputs and may be much more price-sensitive and much more influenced by effort
expectancy/social beliefs in the community.
The dominant influence of effort expectancy beliefs and performance expectancy in
the purchase intent of current study also builds another perspective. The current buying
intent is strong in the “believers” and the “early adopters” of the RT solar. Over a period
IJESM of time, as the RT SPV products become mainstream, the performance and effort
13,3 expectancy beliefs will likely be less relevant in purchase intention. As the technology
diffuses in the market, we should see an evolution of the factors with the pragmatists who
would have faith in the price-value beliefs. Eventually, as the RT solar market evolves
into the mainstream market, we will increasingly see the peer-effects and social influence/
beliefs evolve as a key factor. Extending the study to different time periods could enable
554 tracking the diffusion of solar in Delhi/NCR and Bangalore and evolution of the factors
with that diffusion.
This research can also extend to other metro cities targeted as solar cities by the
government to understand attitude differences/perceptions.
Again, there may also be relevant lessons on penetrations in low-rise, bungalow/villa-
based cities and high-rise apartment cities.
This study can also be extended to test the impact of moderating variables such as
education, income and age on consumer preferences. Awareness will also be another
variable whose impact will need to be modeled in a future study.
There has been a visible linkage of social beliefs as a factor contributing to purchase
intent. It will also be relevant to evolve the study to test the influence of potential opinion
leaders in the market place that influence this factor. Besides a known solar user, the impact
of the solar vendor, a referred but unknown solar user, and influencers such as architects
and builders needs to be analyzed in depth.
Finally, a confirmatory factor analysis and structural equation modeling of purchase
intent of Indian domestic RT solar buyers should be developed to optimize the overall
model. The user comments in the elicitation study and the literature review throw a light on
the perceived cost of the system, lack of awareness of technology, its benefits, its cost
effectiveness, value proposition/ROI, maintenance issues, need for trained technicians to
ensure a good installation, performance and high user satisfaction.
Definitely, with appropriate policy measures targeted at the right triggers to induce solar
acceptance, India can aim to get 50 per cent of its electricity needs from solar energy in
2020s, maybe much before 2030s as envisaged by policymakers.

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About the authors

Ashwini Kumar Aggarwal is a part-time PhD Scholar at the Faculty of Management Studies and
Research, Aligarh Muslim University, India. As the Director, Government Affairs at Applied
Materials India and Chairman, India Electronics and Semiconductor Association, he is closely
engaged with the public policy relating to the solar industry in India. Ashwini Kumar Aggarwal is
the corresponding author and can be contacted at: aggarwal.ashwini@gmail.com
Dr Asif Ali Syed is the Professor at the Department of Business Administration, Faculty of
Management Studies and Research, Aligarh Muslim University.
Dr Sandip Garg was the Chief General Manager, PEC Corporation. He was also the Director,
Bureau of Energy Efficiency, responsible for the BEE star program for appliances.

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