Diffusion of Green Innovations: The Role of Consumer Characteristics for Domestic Energy Storage Adoption

34 Pages Posted: 12 Feb 2018 Last revised: 9 Aug 2019

See all articles by Veronika Grimm

Veronika Grimm

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - School of Business & Economics

Sandra Kretschmer

Chair of Economic Theory, School of Business and Economics, Friedrich-Alexander-Universität Erlangen-Nürnberg

Simon Mehl

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - Department of Economics

Date Written: June 4, 2018

Abstract

Against the background of a growing share of renewable energies and the ensuing fluctuations in electricity supply, domestic energy storage poses a promising option to foster flexible electricity demand and grid-stabilising self-supply. Understanding the determinants of adoption decisions regarding energy storage is therefore essential to enable targeted measures to promote their diffusion. This paper presents an in-depth analysis of motivational and psychological factors as well as product characteristics that affect the willingness to adopt domestic energy storage based on a selective sample focused on solar panel owners as the main energy storage target group. We find that potential adopters differ systematically in their evaluation of economic and non-economic utility aspects of domestic energy storage. Using correlation-based average linkage clustering, we identify four distinct types of storage adopters, namely finance-oriented, security-oriented, idealistic and multilaterally oriented households. The results of random forest analysis further reveal that adoption motives and the willingness to adopt vary substantially among the different types. We show that the most promising future adopters can be predicted based solely on observable characteristics. Our findings emphasise that segment-specific policy strategies and support mechanisms are needed to stimulate energy storage adoption to pave the way for a sustainable energy system.

Keywords: Energy storage, Consumer segmentation, Adoption Decision, Random Forests, Innovation diffusion

JEL Classification: C38, C45, D12, D91, O33, Q56

Suggested Citation

Grimm, Veronika and Kretschmer, Sandra and Mehl, Simon, Diffusion of Green Innovations: The Role of Consumer Characteristics for Domestic Energy Storage Adoption (June 4, 2018). Available at SSRN: https://ssrn.com/abstract=3122235 or http://dx.doi.org/10.2139/ssrn.3122235

Veronika Grimm

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - School of Business & Economics ( email )

Nuremburg
Germany

Sandra Kretschmer (Contact Author)

Chair of Economic Theory, School of Business and Economics, Friedrich-Alexander-Universität Erlangen-Nürnberg ( email )

Lange Gasse 20
Nürnberg, 90403
Germany

Simon Mehl

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - Department of Economics ( email )

Lange Gasse 20
Nuernberg, D-90403
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
27
Abstract Views
343
PlumX Metrics