Featured Research

from universities, journals, and other organizations

Solar power is contagious

Date:
October 18, 2012
Source:
Yale University
Summary:
People are more likely to install a solar panel on their home if their neighbors have one, according to a new study. The researchers studied clusters of solar installations throughout California from January 2001 to December 2011 and found that residents of a particular zip code are more likely to install solar panels if they already exist in that zip code and on their street.

People are more likely to install a solar panel on their home if their neighbors have one, according to a Yale and New York University study in the journal Marketing Science.

The researchers studied clusters of solar installations throughout California from January 2001 to December 2011 and found that residents of a particular zip code are more likely to install solar panels if they already exist in that zip code and on their street.

"We looked at the influence that the number of cumulative adoptions -- the number of people who already installed solar panels in a zip code -- had on the probability there would be a new adoption in that zip code," said Kenneth Gillingham, the study's co-author and assistant professor of economics at the Yale School of Forestry & Environmental Studies. "Our approach controls for a variety of other possible explanations, including clustering of environmental preferences or marketing activity."

They calculated that 10 extra installations in a zip code increase the probability of an adoption by 7.8 percent. If there is a 10 percent increase in the total number of people with solar panels in a zip code -- the "installed base" -- there will be a 54 percent increase in the adoption of solar panels.

"These results provide clear evidence of a statistically and economically significant effect," said Bryan Bollinger, the other co-author and assistant professor of marketing at New York University Stern School of Business.

The study also shows that the visibility of the panels and word-of-mouth led to larger installations. "If my neighbor installs a solar panel and tells me he's saving money and he's really excited about it, it's likely I'll go ahead and do the same thing," said Gillingham. "Then there are others who'll install because they don't want to be one-upped by their neighbors."

The researchers found that white males between the ages of 45 and 65 who have a 30-minute commute and home repairs were associated with higher adoption rates. Gillingham suggested that a disproportionate number of engineers working in Silicon Valley may explain the result. In addition, larger households and people with longer commutes were more exposed to solar installations, thus more likely to adopt the technology, compared to people who carpooled and lived in smaller households.

"These findings have clear implications for marketers who are striving to reduce the high cost of consumer acquisition in the solar photovoltaic market," said Bollinger.

In January 2006 the California Public Utilities Commission established the California Solar Initiative, a $3.3 billion, 10-year rebate program encouraging the installation of 3,000 megawatts of solar infrastructure over the ensuing decade. These subsidies, according to the authors, have increased the number of solar installations to 17,000 in 2010 from fewer than 1,000 in 2001. The authors used the 85,046 requested residential installations during that time in their calculations.

"Our finding of an increasing effect of new installations in a zip code suggests that targeting marketing efforts in areas that already have some installations is a promising strategy," said Gillingham.


Story Source:

The above story is based on materials provided by Yale University. Note: Materials may be edited for content and length.


Journal Reference:

  1. B. Bollinger, K. Gillingham. Peer Effects in the Diffusion of Solar Photovoltaic Panels. Marketing Science, 2012; DOI: 10.1287/mksc.1120.0727

Cite This Page:

Yale University. "Solar power is contagious." ScienceDaily. ScienceDaily, 18 October 2012. <www.sciencedaily.com/releases/2012/10/121018162213.htm>.
Yale University. (2012, October 18). Solar power is contagious. ScienceDaily. Retrieved April 19, 2014 from www.sciencedaily.com/releases/2012/10/121018162213.htm
Yale University. "Solar power is contagious." ScienceDaily. www.sciencedaily.com/releases/2012/10/121018162213.htm (accessed April 19, 2014).

Share This



More Matter & Energy News

Saturday, April 19, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Small Reactors Could Be Future of Nuclear Energy

Small Reactors Could Be Future of Nuclear Energy

AP (Apr. 17, 2014) After the Fukushima nuclear disaster, the industry fell under intense scrutiny. Now, small underground nuclear power plants are being considered as the possible future of the nuclear energy. (April 17) Video provided by AP
Powered by NewsLook.com
Horseless Carriage Introduced at NY Auto Show

Horseless Carriage Introduced at NY Auto Show

AP (Apr. 17, 2014) An electric car that proponents hope will replace horse-drawn carriages in New York City has also been revealed at the auto show. (Apr. 17) Video provided by AP
Powered by NewsLook.com
Honda's New ASIMO Robot, More Human-Like Than Ever

Honda's New ASIMO Robot, More Human-Like Than Ever

AFP (Apr. 17, 2014) It walks and runs, even up and down stairs. It can open a bottle and serve a drink, and politely tries to shake hands with a stranger. Meet the latest ASIMO, Honda's humanoid robot. Duration: 00:54 Video provided by AFP
Powered by NewsLook.com
German Researchers Crack Samsung's Fingerprint Scanner

German Researchers Crack Samsung's Fingerprint Scanner

Newsy (Apr. 16, 2014) German researchers have used a fake fingerprint made from glue to bypass the fingerprint security system on Samsung's new Galaxy S5 smartphone. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins