Diffusion of Green Innovations: Evidence from a Field Study on Domestic Electricity Storage
36 Pages Posted: 12 Feb 2018 Last revised: 13 Jun 2018
Date Written: June 4, 2018
The growing share of renewable energies and the ensuing fluctuations in electricity supply make more flexible electricity demand increasingly important – and the balancing of local distribution networks ever more complex. Domestic energy storage units pose a promising option to meet these challenges by fostering grid-stabilising self-supply. Therefore, understanding the determinants of investment decisions regarding electricity storage is essential to conceptualise and enable targeted measures to foster their diffusion. This paper presents an in-depth analysis of socio-demographic, motivational and psychological factors as well as product characteristics and barriers that affect the willingness to adopt domestic energy storage units. Our study is based on a selective sample focused on solar panel owners as the main energy storage target group and is thus tailored to gain detailed insight on factors influencing and shaping the investment decision. The data was collected during a pilot project connecting domestic energy storage units to form a virtual mass storage which participates in the German balancing market. Using correlation-based single linkage clustering, we identify four distinct types of storage consumers, namely finance-oriented, security-oriented, idealistic and multilaterally oriented households. The results of random forest analysis further reveal that investment motives and the willingness to invest vary among the different types. Our findings emphasise that segment-specific marketing and policy strategies are needed to foster 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: Suggested Citation