Solar Photovoltaics (PV) Diffusion: Dimensions of Commercial and Industrial Energy Consumers in Wisconsin

Abstract

The scale of energy demand in the United States continues to increase in size and complexity without meaningful transformation, validating ongoing unsustainable energy consumption at multiple levels of society. In response, diffusion of solar photovoltaics (PV) as an alternative has been met with mixed levels of success, especially in Wisconsin. A literature review illustrates social, economic, and environmental factors that positively and negatively influence solar PV diffusion, as well as system and energy user behavioral dynamics. However, it is still unclear what specific factors are driving or inhibiting diffusion of different renewable energy technologies in commercial and industrial firms. For this study, we examine those factors that influence adoption of solar PV, as well as barriers and challenges encountered. We conducted mixed methods - an electronic survey methodology and multiple case study - to target key informants employed by corporate members of two salient energy transition programs and one renewable energy organization - Green Tier, Green Masters, and RENEW Wisconsin. Survey results indicate that solar PV adopters are significantly different from potential and non-adopter firms in 4 categorical ways: perceptions of external support, understanding of solar regulations and property rights, affordability, and investment risk and uncertainty. Case-study results demonstrate key dimensions of challenges and barriers including informal rate of return thresholds, stakeholder outreach and governance patterns, and internal innovativeness. We conclude that social and economic factors are crucial influences, and obstacles, in the knowledge and persuasion stages of solar PV diffusion. Further research on energy policy interventions could help cope with or remove barriers to market takeoff of solar PV in Wisconsin.