What are retail investors' risk-return preferences towards renewable energy projects? A choice experiment in Germany

Salm, Sarah; Hille, Stefanie Lena; Wüstenhagen, Rolf

doi:10.1016/j.enpol.2016.07.042

Cited by 114 publications

(62 citation statements)

References 43 publications

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“…There are wide views upon what rate of return is required by investors in low carbon assets (Donovan and Nunez, 2012;Stratton, 2015, Salm et al, 2016 and this is mainly due to the heterogeneous engagement of different kinds of investors. Thus Figure 1 shows (in arrows) the timeline for a typical wind farm development while, underneath, the returns required (in 2016) by various investors at different stages in the project lifecycle.…”

Section: Capital Providers and Return Requirementsmentioning

confidence: 99%

Expansion of the investor base for the energy transition

McInerney

Bunn

2019

Energy Policy

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Despite the emergence of the green bond market, the Energy Service Company (ESCO) model and green investment banks, the opportunities which the world's capital markets present to increase the pool of potential investors and reduce project financing costs for renewable, energy efficient and low carbon assets remain under-exploited. This has been a persistent concern for policy-makers. We review the appeal of this sector to different classes of investor and assess the successes and failures of several innovative products including securitisations, yieldcos, green bonds, green investment banks and crowdfunding. We analyse the experiences with these products and suggest that policy needs to recognise how fiscal initiatives can leverage their inherent appeal.

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Section: Capital Providers and Return Requirementsmentioning

confidence: 99%

Expansion of the investor base for the energy transition

McInerney

Bunn

2019

Energy Policy

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“…a too high price) and then choosing among the remaining product options in line with those so-called screening rules [24]. Several researchers have used this relatively new methodology in the past few years (e.g., [26][27][28][29][30][31].…”

Section: Acbc Analysismentioning

confidence: 99%

Red is the new blue – The role of color, building integration and country-of-origin in homeowners' preferences for residential photovoltaics

Hille

Curtius

Wüstenhagen

2018

Energy and Buildings

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a b s t r a c tThe wider diffusion of solar photovoltaics (PV) is crucial to lower the environmental impact of the residential sector, which is responsible for a large share of energy consumption in many industrialized countries, including Switzerland. By conducting an adaptive choice-based conjoint (ACBC) with a representative sample of Swiss homeowners planning to undertake a roof renovation project, we investigate the extent to which financial and non-financial factors drive homeowners' preferences for PV in Switzerland. We reveal that the color and country of origin of the PV modules are the main drivers for increasing share of preference for PV. In addition, we estimate the price premium that homeowners are willing to pay for building-integrated PV (BIPV) versus rack-mounted PV. We find a premium in willingness to pay of 21.79% for a roof with a BIPV installation in comparison with a rack-mounted PV installation. We further show that an increase in revenues from electricity sales (e.g. via feed-in tariffs), when transparently disclosed over an aggregated time frame, would be almost equally effective in spurring demand for PV as a decrease of initial investment costs (e.g. via one-off investment grants). Implications for energy policy and marketing are discussed. (H.C. Curtius), rolf.wuestenhagen@unisg.ch (R. Wüstenhagen). 1 The term extremely likely has been used to indicate the likelihood of 95%-100% of the outcome [1].

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“…It is probable that most people do not account and reason about PV in the way as it has been presented in the paper (it has in fact been shown by Salm et al (2016) and several other studies that a large share of PV adopters rely on "gut feelings" and simple heuristics like payback times). Is it therefore reasonable to focus solely on the described (behavioral) economic aspects?…”

Section: Interpretation Of the Resultsmentioning

confidence: 96%

When do households invest in solar photovoltaics? An application of prospect theory

Klein

Deissenroth

2017

Energy Policy

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While investments in renewable energy sources (RES) are incentivized around the world, the policy tools that do so are still poorly understood, leading to costly misadjustments in many cases. As a case study, the deployment dynamics of residential solar photovoltaics (PV) invoked by the German feed-in tariff legislation are investigated. Here we report a model showing that the question of when people invest in residential PV systems is found to be not only determined by profitability, but also by profitability's change compared to the status quo. This finding is interpreted in the light of loss aversion, a concept developed in Kahneman and Tversky's Prospect Theory. The model is able to reproduce most of the dynamics of the uptake with only a few financial and behavioral assumptions.

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What are retail investors' risk-return preferences towards renewable energy projects? A choice experiment in Germany

Cited by 114 publications

References 43 publications

Expansion of the investor base for the energy transition

Expansion of the investor base for the energy transition

Red is the new blue – The role of color, building integration and country-of-origin in homeowners' preferences for residential photovoltaics

When do households invest in solar photovoltaics? An application of prospect theory

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What are retail investors' risk-return preferences towards renewable energy projects? A choice experiment in Germany

Cited by 114 publications

References 43 publications

Expansion of the investor base for the energy transition

Expansion of the investor base for the energy transition

Red is the new blue – The role of color, building integration and country-of-origin in homeowners​' preferences for residential photovoltaics

When do households invest in solar photovoltaics? An application of prospect theory

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Red is the new blue – The role of color, building integration and country-of-origin in homeowners' preferences for residential photovoltaics