POLICY RECOMMENDATION TO INCREASE PV TECHNOLOGY ADOPTION FOR RESIDENTIAL CONSUMERS WITH CHOICE BASED CONJOINT ANALYSIS APPROACH
Indonesia has huge renewable energy potential, and half of it comes from solar energy, and only 0,05% of total potential is realized. Solar energy is converted to electricity for daily uses using PV technology. In Indonesia, PV technology consumers are mostly residential sectors, but only 3% of cons...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/79405 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Indonesia has huge renewable energy potential, and half of it comes from solar energy, and only 0,05% of total potential is realized. Solar energy is converted to electricity for daily uses using PV technology. In Indonesia, PV technology consumers are mostly residential sectors, but only 3% of consumers has adopted PV technology. To encourage PV technology adoption, it is necessary to understand consumers' preference to design strategy suitable to increase adoption rate.
Research was carried out with choice based conjoint analysis approach. There are four attributes in the experiment, convenience of installation, sustainability of electricity, upfront investment cost and monthly electricity cost. Using utility values from CBCA experiment, conjoint simulation is conducted to predict the share of preference of likely adopter segment and likely non adopter segment under various financing scenarios. Cluster analysis is also conducted to understand the segmentation in the residential market preference towards PV technology.
With 241 respondents in Greater Jakarta and Surabaya regions, consumers consider upfront investment cost as the most important attribute. There are two clusters, Sustainability-Oriented cluster (59,7%) with high acceptance of PV and Financial-Oriented cluster (40,3%) with low acceptance of PV. Based on conjoint simulation, 55,18% Indonesian consumers are predicted to be likely adopters of PV. Conjoint simulation results show that the best financing scheme to encourage PV adoption is long-term installment with 5 million IDR down payment and increase in net metering value from 65% to 100%. It is recommended that to significantly encourage adoption of PV in residential sectors, Indonesian government to establish partnerships with financial institutions to design installment program with low down payment, increasing net metering value, and empower Indonesian PV industry by giving fiscal incentives to reduce manufacturing costs. |
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