Diffusion of solar thermal in China's BoP market

Solar-related technologies are considered effective solutions for two major challenges facing the developed economies, the need to improve the lives of the poorest billions of the global population and the threat of global warming. Instead of the solar voltaic technology, this paper studies the diffusion of solar thermal system in Chinas base-of-pyramid (BOP) markets. With the theoretical lens of innovation diffusion, the paper explores how the technology of solar thermal was diffused in rural China where lots of BoP groups lived. With the methodology of case study, the paper analyzes the barriers of diffusing solar thermal system in both urban and rural areas, and studies how solar firms in China promote the diffusion of such products with both technological and business model innovation. The paper finds out that synergic innovation between the technology and BoP-oriented business model is the key success factor for the innovation diffusion in BoP markets. The findings of the paper will provide implications for both BoP research and BoP practice of firms.