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Technology Adoption: Residential Solar Electric Systems

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Part of the book series: Innovation, Technology, and Knowledge Management ((ITKM))

Abstract

The purpose of this study is to evaluate the adoption and aggregated diffusion of solar electric systems in the residential sector. The goal of this paper is to try answer the following questions using an Agent-Based Model (ABM):

  1. 1.

    Is there evidence of a delay in the aggregate adoption of solar electric systems? If so, how can the adoption be improved?

  2. 2.

    What is the relationship between increasing electricity prices, price preference, and rate of adoption?

  3. 3.

    What impact does changing the incentive structure have on the overall electricity savings?

The model could be used by electric utility companies, energy program administrators, and government and state agencies for planning purposes.

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References

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Authors and Affiliations

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Correspondence to Kevin C. van Blommestein .

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Appendix: Model Parameters

Appendix: Model Parameters

8.1.1 Agents and Environment

The global variables, agents, and patches for the solar electric system adoption model.

Global variables (user adjustable variables)

Housing density: The percentage of total patches that are occupied by houses

Incentives: The incentives offered by utility companies and others to encourage the adoption of the technology

Energy price: The price of electricity (kWh)

Solar price: The price of a solar electric system per kWh

Inequality: The distribution of wealth for one of the communities under evaluation. This distribution of wealth is defined by the equation min-income × exp(random − exponential(1/inequality)). The intention of this equation is to try creating the Pareto distribution

Solar hotspots: The percentage of patches that will have the highest solar intensity level. Random patches are chosen and the solar intensity diffuses to the neighborhood patches

Initial adopters: The percentage of households that will already have a solar electric system before the simulation starts

Maximum interaction radius: Each household can influence other households within a random radius between 0 and maximum interaction radius

Maximum random interactions: Each household can influence a random number of other households between 0 and maximum random interactions

Maximum budget: Each household has a random percentage of their income, between 0 and 100 %, which they can spend

Maximum price preference: A household will decide to move from aware to persuade if electricity monthly payments × price preference ≥ solar monthly payments. This is a random value between 0 and 3

Hide-links: Hide the links that are connecting the households

Show-solar: Show the sun hours by using a scaled yellow color for each patch

Procedures

Setup global: Initializes all the global variables

 

Update plot: Update the plots displaying the number of households in each stage of adoption, the distribution of in and out links, and the distribution of income

Update display: Observes the status of show-solar? and hide-links? to determine whether the display should be updated, even when the simulation is running

Agent

Households: Houses are randomly placed on patches. The number of households is controlled by the global housing-density variable

Characteristics

Income: The total monthly income from all members of the household

Budget: Percentage of income which the households can spend per month

Electricity consumption: The amount of electricity consumed by the household per month (kWh). This is calculated by multiplying the average electricity consumption in Oregon with the ratio of the households income to the median income

Adoption stage: A household can be unaware, aware, persuaded, or decided on the technology

Price preference: A household will decide to move from aware to persuaded if electricity monthly payments × price preference ≥ solar monthly payments

Awareness threshold: How many households need to mention the technology to this household before they change their adoption stage from unaware to aware

Persuasion threshold: How many households need to mention the technology to this household before they change their adoption stage from aware to persuaded

Interaction radius: The radius of the circle in which a household can influence other households, or be influenced

Random interaction: How many random households outside the radius can be influenced? This resembles the random friends discussed by Beinhocker

Solar size-required: The size of the solar electric system required. This is calculated by electricity consumption × 12 × 1,000/(365 × [sun-hours] of patch-here × derate-factor). The derate factor for solar electric systems is generally assumed to be 0.77

Own incentives: The amount of incentives the household can obtain for their solar electric system. The maximum amount defined by Energy Trust of Oregon is $5,000

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van Blommestein, K.C., Daim, T.U. (2015). Technology Adoption: Residential Solar Electric Systems. In: Daim, T., Kim, J., Iskin, I., Abu Taha, R., van Blommestein, K. (eds) Policies and Programs for Sustainable Energy Innovations. Innovation, Technology, and Knowledge Management. Springer, Cham. https://doi.org/10.1007/978-3-319-16033-7_8

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