Factors Affecting The Adoption of Solar PV Net Metering System: Case Study IESCO

Abstract

Energy crisis in Pakistan is causing power outages that affects the household sector, industrial and commercial sector also the price of electricity is not stable and increases time to time. This energy crisis can be minimized by switching towards the renewable energy sources especially towards Solar PV system. Many countries around the world have switched towards solar PV systems due to its promising results but in case of Pakistan its adoption is very low even at microgeneration level. This study identifies the factors that affect the adoption of Solar on grid net metering-based systems both positively and negatively. Attributes of Rogers innovation diffusion model are used for understanding the adoption of Solar PV systems. Questionnaire was developed and distributed among 250 people who have the knowledge of net metering based solar PV system to gather data. Gathered data was then analysed using the SPSS software. Results shows that the initial cost of system is among the barriers that affect the adoption of net metering system negatively whereas relative advantage, compatibility and trialability has positive affect on the adoption of solar PV net metering system. Observability shows weak positive relationship. Adoption can be increased by working on the trialability and observability aspect of this technology and by decreasing the initial cost of system. The results of this study will have practical implications for Solar PV net metring-based system adoption in IESCO region.