The Market Price Premium for Residential PV Plants

D’Alpaos, Chiara; Bragolusi, Paolo

doi:10.1007/978-3-030-48279-4_112

Cited by 4 publications

(14 citation statements)

References 28 publications

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“…Furthermore, Thomas et al (2021) concluded that adoption decision is significantly affected by compatibility energy requirements; the cost of technology plays a significant role in adoption. There are a few other studies conducted on technical aspects, such as PV panel performance in different weathers conditions, and willingness to pay a premium for technically superior solar technologies (Bhardwaj et al , 2019; D’Alpaos and Bragolusi, 2021; Danne et al , 2021; Bright et al , 2017) .…”

Section: Introductionmentioning

confidence: 99%

Solar rooftop adoption among Indian households: a structural equation modeling analysis

Kumar

Kaushik

2022

JSOCM

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Purpose This study aims to examine factors influencing purchase intentions of households toward solar rooftops, using diffusion of innovation theory. Design/methodology/approach Six dimensions from the diffusion of innovation theory have been contemplated to assess households’ purchase intentions toward solar rooftops. Primary data was collected from 863 respondents by using a purposive sampling technique from different parts of India. The study used structural equation modeling analysis to examine the data. Findings Results confirmed that the dimensions, namely, relative advantage, compatibility, complexity, innovations and observability, positively influence households’ purchase intentions of solar rooftops, except for the trialability dimension. Research limitations/implications Data for the study is based on a purposive sampling technique that restricts the representation of the whole population. There may be variance in public perception from place to place due to demographic and psychographic differences. Practical implications The present study would facilitate devising a roadmap to improve the quality of the environment. Policy planners, researchers and professionals would find the implications of this study helpful in developing critical strategies. Originality/value The research practically explores households’ intention to purchase solar rooftops by filling the gap in previous literature. Findings of the study can equip firms with several advantages. Through the present study, one gets to know that developed and developing economies have similar energy usage issues. Further, it empirically examines the applicability of diffusion of innovation theory in the solar rooftops context.

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Section: Introductionmentioning

confidence: 99%

Solar rooftop adoption among Indian households: a structural equation modeling analysis

Kumar

Kaushik

2022

JSOCM

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“…As the good under current evaluation is a detached house, which represents a widespread building typology usually exchanged in the real estate market, we made the hypothesis that respondents were able to estimate the market price premium for different risk class upgrades, based on usually well-known market prices and conditions for this market segment. In other words, we assumed that respondents were sufficiently experienced to express their WTP in terms of property market price premiums [64].…”

Section: Methodsmentioning

confidence: 99%

The Market Price Premium for Buildings Seismic Retrofitting

D’Alpaos

Bragolusi

2020

Sustainability

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The Italian territory is largely prone to seismic risk and 6 million buildings require seismic retrofitting. In the last three main seismic events (Abruzzo 2009, Emilia Romagna in 2012 and in Lazio in 2016) 633 people died and considerable financial losses such as the structural collapse of buildings and interruption of production activities were incurred. During the period 1944–2017, economic losses caused by seismic events amounted to EUR 212 billion. More than 80% of the entire building stock does not respect seismic design standards provided by Italian regulations (NTC 2018). Seismic retrofitting of buildings may avoid many deaths and financial losses, as well as increase people’s safety. In addition, seismic retrofitting of buildings may also generate an increase in real estate asset value (namely a market price premium), which may accelerate investments. Despite the relevance of this issue, there is a lack of literature, which investigates the key factors in boosting investments and the market price premium for retrofitted buildings in detail. The aim of this paper is to fill this gap with respect to the Italian Real Estate market. To estimate the capitalization effect of benefits produced by seismic retrofitting on property market values, it is fundamental to know how much people are willing to pay for it. As, to our knowledge, there are no available datasets which provide house characteristics, including seismic performances and market prices of Italian real estate assets, we implemented a contingent valuation approach to determine the market price premium for retrofitted assets. In detail, information about the willingness to pay (WTP) an additional price for a seismically retrofitted home (by considering different risk exposure), ceteris paribus was elicited using open-ended questions in a self-administered web interview. In particular, we applied the methodology to a case study, i.e., a contingent scenario related to masonry-detached houses located in a seismic hazard zone. Our results revealed that individuals are willing to pay an additional price for retrofitted assets and the average market price premium ranges from 10% to 52% of the property market price.

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“…For years, EU Governments have promoted investments in PV plants due to generous incentive schemes, which turned out to be a key factor in private investors' decisions [7][8][9][10]. These incentives proved to be successful in stimulating investments in residential PV plants, which became attractive for households and small private investors [11][12][13]. Italy is no exception within the EU-27 area.…”

Section: Introductionmentioning

confidence: 99%

“…Investments in residential PV plants usually aim at improving buildings' energy efficiency and reducing energy costs bills thanks to self-consumption [4,13,15,16]. In this respect, academics and practitioners acknowledge that the greater the building energy efficiency, the greater its market value.…”

Section: Introductionmentioning

confidence: 99%

“…Consequently, many solar homes will likely enter the market in the near future [34][35][36]. The strand of literature investigating the market price premium for solar homes is even more limited concerning the Italian context [12,13]. Market price premiums are usually estimated by implementing hedonic regressions, firstly prosed by [37] Rosen (1974), which are grounded in the availability of datasets that provide home characteristics (e.g., ground floor area, quality of finishes, year built, energy performance certification, distance to the central business district, etc.…”

Section: Introductionmentioning

confidence: 99%

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The Willingness to Pay for Residential PV Plants in Italy: A Discrete Choice Experiment

Bragolusi

D’Alpaos

2021

Sustainability

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PV energy generates economic and environmental benefits (e.g., energy cost-saving, GHG emissions reduction, etc.), which can be capitalized into market prices. There is, therefore, growing interest in assessing the value that PV systems add to solar homes (i.e., homes equipped with PV production plants) market prices. Although the number of solar homes has experienced rapid growth in Europe and Italy, literature investigating the impact of PV power plants on home values is still very limited. This paper aims to fill this gap. We implement a Discrete Choice Experiment (DCE) approach to estimate individuals’ WTP for different typologies of domestic PV plants, which vary in technical characteristics. Our findings show that homebuyers are willing to pay a price premium for solar homes, ranging from some 3% to some 15%, depending on PV panels’ characteristics. These results can provide a wealth of recommendations to different interested parties such as homeowners, homebuyers, realtors, and governments, seeking knowledge on the capitalization effect of residential PV plants on the housing market to implement cost-effective investment strategies or design optimal policy incentives.

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The Market Price Premium for Residential PV Plants

Cited by 4 publications

References 28 publications

Solar rooftop adoption among Indian households: a structural equation modeling analysis

Solar rooftop adoption among Indian households: a structural equation modeling analysis

The Market Price Premium for Buildings Seismic Retrofitting

The Willingness to Pay for Residential PV Plants in Italy: A Discrete Choice Experiment

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