Are solar panels a middle-class purchase? This survey says yes


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The latest research suggests that in Australia, rooftop solar photovoltaics are more likely to be adopted by middle-class households.
Author provided

Adam McHugh, Murdoch University

The rate of growth in residential rooftop solar photovoltaics (PV) in Australia since 2008 has been nothing short of breathtaking.

Our new research suggests that the households most likely to join in the solar spree are those that are affluent enough to afford the upfront investment, but not so wealthy that they don’t worry about their future power bills.

Australia now has the highest penetration of residential rooftop PV of any country in the world, with the technology having been installed on one in five freestanding or semi-detached homes. In the market-leading states of Queensland and South Australia this ratio is about one in three, and Western Australia is not far behind, with one in four having PV.

The explosion in rooftop PV uptake since 2008.
Derived from Clean Energy Regulator data. Click image to enlarge.

While PV panels give households more control over their electricity bills, and each new installation helps reduce greenhouse gas emissions, the market’s rapid expansion has posed significant challenges for the management of the electricity system as a whole.




Read more:
The electricity network is changing fast, here’s where we’re heading


Unlike other industries where goods can be warehoused or stockpiled to manage fluctuations in supply and demand, electricity is not yet readily storable. Storage options such as batteries are now commercially available, but haven’t yet reached widespread use. This means that a system operator is required to keep the grid balanced in real time, ideally with just the right amount of capacity and backup to manage shocks in supply or demand.

Securing the right amount of generation capacity for the electricity grid relies on long-term planning, informed by accurate supply and demand forecasts. Too much investment means excessive prices or assets lying idle (or both). Too little means longer, deeper or more frequent blackouts.

But as solar panels spread rapidly through the suburbs, the job of forecasting supply and demand is getting much harder.

This is because the commercial history of residential rooftop PV has been too short, and the pace of change too fast, for a clear uptake trend to be established. Previous attempts to predict the market’s continuing growth have thus entailed a lot of guesswork.

Why do people buy solar panels?

One way to improve our understanding is to talk to consumers directly about their purchasing intentions and decisions. The trick is to find out what prompts householders to take that final step from considering investing in solar panels, to actually buying them.

This was the approach we took with our research, published today in the international journal, Renewable and Sustainable Energy Reviews. We analysed data from a survey of more than 8,000 Queensland households in 2014 and 2015, part of a survey series commissioned by an industry group now known as Energy Queensland.

Comparison of motivational factors between surveyed PV intenders and adopters.
Bondio, Shahnazari & McHugh (2018). Click image to enlarge.

We found that the decision to go solar was driven largely by housholds’ concerns over rising electricity bills and the influence that economic life events have over perceptions of affordability.

But the households that tended to adopt PV were also those that were affluent enough not to be put off by the relatively large upfront cost.

This combination of having access to funds, while at the same time being concerned about future electricity prices, appears to be a broadly middle-class trait.

While the upfront cost of PV can deter lower-income households, this can be overcome by receiving an offer that is too good to refuse, or if concerns about ongoing electricity bills are acute – particularly in the case of retirees.

Electricity price uncertainty is a particular concern for retirees, who typically have a lower income. We found that retirees were more likely than non-retirees to invest in solar panels, all else being equal. Retirees, like many people who invest in solar power, seem to view buying solar panels as being like entering into a long-term contract for electricity supply, in that it provides price certainty over the life of the PV system.

We also found that while the idea of self-sufficiency was important for developing an intention to buy solar panels, this motivation later fell away among households that went ahead and bought them. This could be because householders who buy solar panels, but find themselves still relying significantly on the grid, may conclude that self-sufficiency isn’t achievable after all.

About one-third of those who said they intended to buy solar panels cited environmental concerns as a reason for their interest. Yet this factor did not significantly increase the odds of them going on to adopt the technology. This suggests that when it comes to the crunch, household finances are often the crucial determining factor.




Read more:
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We also found the chances of adopting solar panels were highest for homes with three or four bedrooms. Smaller homes may face practical limitations regarding roof space, whereas homes with five bedrooms or more are likely to be more valuable, suggesting that these householders may sit above a wealth threshold beyond which they are unconcerned about electricity bills.

But perhaps our most important finding is that analysis of household survey data can be useful to forecasters. Knowing who is adopting rooftop PV – and why – should enable better predictions to be made about the technology’s continuing expansion, including the crucial question of when the market might reach its saturation point.


The ConversationThe research paper can be downloaded here for free until August 1, 2018.

Adam McHugh, Honorary Research Associate, Murdoch University

This article was originally published on The Conversation. Read the original article.

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NSW Road Trip 2010: Packing & Getting Ready


It is now the day prior to the NSW Road trip 2010. I have begun packing and getting ready for the journey that lies ahead. I don’t expect to be taking a lot of gear, as I won’t be doing a lot of cooking, washing, etc, on this trip.

I have learnt that it is important to not assume that you have everything you need and then find out the day before that you may not – I already knew this of course, but having recently moved, I no longer have everything that I once did. For example, I do not presently have a sleeping bag. I got rid of the last one because it was old and smelly, and I planned to buy another. But a lot has happened since mid 2007 when I packed to move – including a near fatal car accident that put my purchasing plans well and truly on hold, and they then slipped into the area of my mind that ‘forgets.’

So now I have no sleeping bag – but that isn’t too important as I don’t believe I really need one this time round. It is a road trip, with several cabin stops along the way and only caravan parks with powered sites for the rest. I will take a couple of blankets should I need them (which I don’t believe I will – it will be quite hot in the outback this time of year).

Of course it is not just the sleeping bag that is missing. I am also missing a fly cover for the tent, but thankfully I had two tents so I’m OK there. There are a number of other items missing also, but I don’t really need them this time round. Thankfully I have spotted all this now, which means I can plan to purchase what I need for future adventures, back pack camping, etc. I had of course planned to buy these items, but with the passing of time I forgot.

Anyhow, the packing is under way and I just hope I don’t forget something I wish I had packed when I am on the journey. I’m relatively sure I haven’t – which isn’t to say That I have forgotten something.

What I’d like to remember – and tomorrow I’ll know for sure if I have – is how I packed the car, so that everything was easily accessible. I was fairly well organised for this sort of thing when I was doing it fairly regularly several years ago – but it has been a while. Minimal gear wisely packed, without leaving anything necessary behind – that’s the key for this type of journey and vacation.

This will be the first time however, that I have a bag dedicated to my online activities – laptop, digital camera, web cam, flash drives, etc. I hope to keep an accurate and useful journal online at the kevinswilderness.com website, with photos, comments, route map, etc. So this is a ‘new’ bag that I need to organise in the overall scheme of things.

Anyhow, packing is now underway and coming to a conclusion. The journey will soon kick off.

BUSH HERITAGE AUSTRALIA – Update September 2008


One of the groups I have a lot of time for in Australia and one which I am planning to support in a more active way in the New Year (once I get back on my feet so to speak) is Bush Heritage Australia.

Bush Heritage Australia is actively seeking to protect 1% of Australia by 2025, ensuring the protection of our unique flora, fauna and wild places. This is done through purchasing land by money donated to it by those wanting to protect the Australian environment and natural heritage. Bush Heritage currently owns some 1 million hectares, meaning it needs to acquire a further 6 million hectares to obtain its 2025 goal.

In September 2008, Bush Heritage Australia purchased the 8 100 hectare Edgbaston Station, 140km north-east of Longreach in Queensland for 3.5 million dollars. In doing so, Bush Heritage has ensured the survival of Australia’s most endangered and smallest freshwater fish species, the Redfin Blue-Eye Fish. This region is the only location in which this fish species now lives.

But it is not only the Redfin Blue-Eye Fish that will be protected by the purchase of this property as this region and the springs found on the property is the only known habitat for several other species of fish, snails, plants and a crustacean.

The springs on Edgbaston Station are located in the upper catchment of Pelican Creek which flows into the Thompson River and Lake Eyre. There are some 50 artesian springs on the property, supporting a large diversity of life.

The 3.5 million dollars required for the purchase of Edgbaston Station included 1.324 Million dollars from the Australian government’s Maintaining Australia’s Biodiversity Hotspots program and donations from the Queensland Department of Natural Resources and Water and the Queensland Department for Sustainability, Climate Change and Innovation.

Bush Heritage will be working alongside of the Iningai people, who are the traditional owners of the land on which Edgbaston Station is located, to manage the property.

For information on what you can do to assist Bush heritage Australia or to get more information on any of the reserves managed by Bush heritage Australia visit the web site below.

http://www.bushheritage.org.au/