Analysis of consumer preferences for community solar programs using choice experiment

Abstract

Many countries are actively promoting a community solar program, which is a community energy program centered on solar photovoltaic power generation, as a public participation-type energy policy. In this study, we analyze the preferences of potential participants in community solar programs from the perspective of policymakers to identify public acceptance and draw policy implications. As a methodology, the choice experiment with a stated preference method is used to analyze the preferences on the individual attributes of community solar energy in terms of business model targeting Korean who are the potential participants. Furthermore, we observed the homogeneity of preferences within each group and the heterogeneity of preferences between groups by dividing the groups based on the latent class model estimation. The results of this study show that the attributes of the community solar program, such as the operating agent, contract period, expected return, and participatory management, have a significant impact on the acceptance of potential consumers, and that there are clear differences between potential classes. The results can be used as basic data for the community energy projects and can contribute to designing succecesful energy policies not only for Korea but also for governments of other countries pursuing carbon neutrality.