The Influence of Financial Benefits and Peer Effects on the Adoption of Residential Rooftop Photovoltaic Systems

The uptake of residential photovoltaic systems is essential for energy system transformation towards carbon neutrality and decentralization. However, despite numerous campaigns to incentivize their uptake, adoption by residential homeowners is lacking behind. While countless drivers and barriers have been identified, the decision process is not fully understood. To address this gap, we developed an agent-based residential rooftop photovoltaic adoption model called PVact. Our model analyzes the interactions of potential household adopters based on their utility functions and social network, with a focus on the role of monetary evaluation and social pressure in adoption behavior. In this paper, we aim to assess the influence of monetary evaluation and social pressure in an abstract case study based on real-world data from the municipality of Leipzig, Germany. We consider stochastic dynamics through scenario analysis to investigate the influence of these factors on adoption behavior. Our results show that monetary evaluation and social pressure have a significant impact on adoption behavior. Specifically, we find shifting adoption patterns with an increased requirement for monetary returns and higher level of normative pressure required for households to act. Higher resistance against these pressure shows more stochastic variations, more pronounced tipping points and stronger run-away effects.