Customer concerns about uncertainty and willingness to pay in leasing solar power systems

• Published in: International journal of environmental science and technology (Tehran) Vol. 8; no. 3; pp. 523 - 532
• Main Authors: Shih, L. H, Chou, T. Y
• Format: Journal Article
• Language: English
• Published: Iran Center for Environment and Energy Research and Studies (CEERS) 01.07.2011; Springer-Verlag; Springer Nature B.V
• Subjects: Aquatic Pollution; Cluster analysis; Conjoint analysis; Consumer attitudes; Earth and Environmental Science; Ecotoxicology; Environment; Environmental Chemistry; Environmental Science and Engineering; Environmental sciences; leases; Leasing; Leasing time; Part worth utility; Photovoltaic cells; Photovoltaic system; Renewable energy; Soil Science & Conservation; Solar energy; subsidies; Utilities; Waste Water Technology; Water Management; Water Pollution Control; willingness to pay; Leasing time; Conjoint analysis; Part worth utility; Photovoltaic system
• ISSN: 1735-1472; 1735-2630
• DOI: 10.1007/BF03326238

Although solar power systems are considered as one of the most promising renewable energy sources, some uncertain factors as well as the high cost could be barriers which create customer resistance. Leasing instead of purchase, as one type of product service system, could be an option to reduce consumer concern on such issues. This study focuses on consumer concerns about uncertainty and willingness to pay for leasing solar power systems. Conjoint analysis method is used to find part worth utilities and estimate gaps of willingness to pay between attribute levels, including various leasing time lengths. The results show the part worth utilities and relative importance of four major attributes, including leasing time. Among concerns about uncertainties, government subsidy, electricity price, reliability, and rise of new generation solar power systems were found to be significantly related to the additional willingness-to-pay for a shorter leasing time. Cluster analysis is used to identify two groups standing for high and low concerns about uncertainty. People with more concerns tend to pay more for a shorter lease time.