Neighbourhood Influence on Solar Adoption

Have you ever wondered what prompted you to switch to solar energy? Was it a financial decision based on return on investment, a desire to reduce power bills, or a commitment to combat climate change?

While these are common reasons, another significant factor could be the influence of your neighbours. The sight of solar panels in your neighbourhood can act as a social endorsement, making the idea more acceptable. As more households in the vicinity embrace solar energy, a ripple effect is created.

Understanding the Neighbourhood Effect

Research indicates that humans are inherently social beings who are influenced by the actions of their peers. A recent study delved into this neighbourhood effect concerning the installation of solar panels and quantified its impact.

This phenomenon results in an additional 15-20 solar installations per postcode annually, contributing to approximately 18% of new solar installations.

Impact of Neighbours on Decision Making

Two decades ago, solar panels were a rare sight in Australia, but today, nearly a third of households have embraced this technology. With 36.5 gigawatts of solar capacity nationwide, residential solar plays a significant role in this transition.

Government incentives in the early 2000s kickstarted Australia’s solar journey, making solar panels more attractive to homeowners. As solar prices decreased over time, more households opted for solar energy.

Despite our belief in making rational decisions independently, external factors play a crucial role in influencing our choices. Factors such as income, education, age, and even unemployment rates impact the decision to adopt solar energy.

Interestingly, the presence of solar panels in a neighbourhood has a substantial influence, leading to an accelerated adoption rate of 15-20 additional installations per postcode annually.

Utilising the Neighbourhood Effect

The neighbourhood effect is a powerful driver in the uptake of solar energy and can be leveraged by policymakers and industry stakeholders to further boost Australia’s solar adoption rates. By encouraging early adopters to share their experiences and implementing targeted campaigns in specific areas, authorities can expedite the transition to renewable energy.

Australia’s shift towards solar energy is not merely an economic decision but also a social one, influenced by the actions of our neighbours. As we strive for a sustainable future, the neighbourhood effect can play a pivotal role in shaping our collective response to climate change.

Authors: Kaveh Khalilpour, Associate Professor in Engineering and IT at the University of Technology Sydney, and Alexey Voinov, Professor in Sustainability Science at the University of Twente.