Factors Influencing Household Adoption of Rooftop Solar Power in the Philippines: An Empirical Analysis Using the Contingent Valuation Method

• Main Author: Palanca-Tan, Rosalina
• Format: text
• Published: Archīum Ateneo 2024
• Subjects: Adoption determinants; Contingent valuation; Metro Manila; Philippines; Renewable energy; Rooftop solar power; Economics; Environmental Sciences; Oil, Gas, and Energy; Physical Sciences and Mathematics; Social and Behavioral Sciences
• Online Access: https://archium.ateneo.edu/economics-faculty-pubs/232; https://archium.ateneo.edu/context/economics-faculty-pubs/article/1234/viewcontent/CIS_12.03_01.pdf
• Institution: Ateneo De Manila University

The Philippines possesses significant solar energy potential, yet the adoption of rooftop solar power (RTSP) among households remains limited despite its benefits in reducing electricity costs and contributing to the clean energy transition. This study investigates the determinants influencing households’ willingness to adopt RTSP in Metro Manila and surrounding provinces, utilizing the contingent valuation method. Survey results indicate that economic factors, particularly the potential for electricity bill reduction, along with environmental considerations, are positively associated with adoption intentions. While a substantial portion of households (82%) expressed some level of intention to adopt RTSP, the figure drops to 20% when focusing exclusively on households with definitive adoption plans. This suggests that perceived returns on RTSP investments are insufficient to spur broader adoption without further intervention. Policy measures, including increased financial incentives such as enhanced net metering rates, the accreditation of RTSP providers to mitigate perceived risks, and the provision of low-cost financing options, are deemed necessary to enhance adoption rates. Additionally, other economic advantages, such as property value appreciation and enhanced roof durability, could be emphasized in future marketing and public awareness campaigns to strengthen the case for RTSP adoption. Greater government support is critical to unlocking the potential of RTSP in the Philippines and aligning household energy practices with national sustainability goals.