Unemployment Impact on Rooftop Solar
Recent research has uncovered surprising insights into the reasons behind Australia’s significant increase in rooftop solar installations over the past two decades. With more than a third of homes now equipped with solar panels, the country leads globally in this renewable energy trend. The milestone of the 4 millionth Australian home adopting rooftop solar was recently celebrated, highlighting the widespread adoption of this sustainable energy source.
A collaborative study conducted by researchers from the University of Technology, Sydney, and the University of Twente in the Netherlands delved into the solar uptake across all 2,641 postcodes in Australia. Their analysis aimed to identify the key factors influencing individuals’ decisions to invest in solar energy. Surprisingly, the research revealed that areas with higher rates of unemployment showed a greater propensity for rooftop solar installations.
Factors Influencing Solar Adoption
According to Associate Professor Kaveh Khalilpour from the University of Technology, Sydney, the unemployment rate emerged as a significant driver of solar photovoltaic (PV) adoption. As the cost of solar installation decreases and the overall cost of living rises, individuals facing job insecurity are increasingly turning to solar energy to mitigate long-term energy expenses. This shift signifies a democratisation of energy access, indicating that solar power is no longer exclusive to affluent households but is becoming a practical choice for lower-income families seeking financial stability.
Contrary to expectations, variables such as gender and property size did not notably impact solar adoption rates. Instead, factors like marital status, household income, education level, and the prevalence of rented accommodations emerged as strong predictors of rooftop solar uptake. The research highlighted that individuals who are married and possess higher non-school qualifications are more inclined to embrace solar energy, reflecting a trend where educated and established populations are at the forefront of the renewable energy movement.
Approximately 80% of the decision to install solar panels is influenced by income, education, age, marital status, and employment status, while the remaining 20% is attributed to the neighbourhood effect – a social phenomenon where individuals’ behaviours are influenced by their residential environment.
The Neighbourhood Effect
Professor Khalilpour’s study emphasised the impact of the neighbourhood effect on solar adoption. The research revealed that the choices made by neighbours play a significant role in an individual’s decision to install solar panels. The more solar installations visible in a neighbourhood, the higher the likelihood of further adoptions. In fact, the neighbourhood effect accounted for approximately 15 to 20% of solar adoptions in the areas studied annually.
This phenomenon underscores the social influence on energy choices and highlights the importance of community behaviour in driving renewable energy uptake. Khalilpour suggests that policymakers and industry stakeholders should consider leveraging the neighbourhood effect to promote solar adoption through targeted campaigns and tailored initiatives in specific suburbs.
For a more in-depth discussion on this topic, you can listen to the full interview with Kaveh Khalilpour on the SwitchedOn podcast, where he elaborates on the implications of these findings for Australia’s renewable energy landscape.
