Do Social Networks and Neighbourhood Effects Matter in Solar Adoption? Insights from Uganda National Household Survey

Abstract

This study investigates the role of social networks and neighbourhood effects in promoting solar adoption among Ugandan households using nationally representative data from the Uganda National Household Survey and employing logistic regression analysis. Neighbourhood effects are measured using the Herfindahl index, while social networks are assessed based on membership in social groups.Findings reveal that both neighbourhood effects and social networks significantly enhance solar PV adoption, with neighbourhood effects exerting a stronger influence. Furthermore, the interaction between these factors amplifies the likelihood of adoption, highlighting the complementary roles of visible installations and social interactions in reducing uncertainties surrounding solar adoption.Socioeconomic factors such as household wealth, education, and housing conditions also play a critical role, whereas poverty and low living standards present significant barriers.This study contributes to the growing literature on solar adoption by offering valuable insights on the potential of social networks and neighbourhood effects in driving the adoption of solar PV systems from a developing country context. The findings underscore the need to implement practical strategies and policy initiatives that harness the potential of social groups and neighbourhood effects to scale uptake of solar PV systems among Ugandan households.

Keywords: Solar PV systems, Adoption, Neighbourhood effects, Social networks, households