Household preferences for rooftop solar photovoltaic systems: Evidence from a survey-based study in five Indonesian cities

Abstract

Understanding the underlying decisions of rooftop solar PV adopters in emerging markets like Indonesia is crucial for accelerating the deployment of the technology. Despite its potential, utilization has remained low. This study aims to characterize household preferences towards rooftop solar PV installations and to examine the influence of sociodemographic characteristics on those preferences. Data is collected through an online survey conducted in five major cities in Indonesia. This study adapts the features of the double-bounded Contingent Valuation Method (CVM) to elicit preferences. The findings indicate that while most respondents are willing to install solar PV on their rooftops, the overall degree of their preference is generally low. Key determinants of their preferences include education, age, household income, head of household status, and residential location, with social networks also playing a significant role. Specifically, membership in environmental communities increases the likelihood of adoption by 18.4 %, while exposure to peers with solar PV installations is linked to a 16.5 % higher probability of installation. This empirical evidence suggests that policymakers need to develop a comprehensive strategy to maximize uptake and highlights the importance of designing differentiated and targeted policies to support a more inclusive clean energy transition.