Abstract
Although business models presumably have a prominent role in socio-technical change remarkably little research has been conducted in this domain, more particularly in the context of developing economies. In this paper, we tap into this knowledge gap and study business model components and the challenges they face. We argue that the market value of renewable energy technologies will increase when new business models are implemented to overcome financial and institutional challenges. We complement concepts of the business model literature with the insights from the sustainable transitions literature. This paper addresses two research questions: What are the challenges of business and financial models in the transition towards decentralized solar energy driven systems? And what are the promising opportunities for new business models in a developing country context? To answer these research questions, we use a case study research design focusing on niche market development of solar thermal and solar photovoltaic (PV) technology in Lebanon. Data collection involved analysis of relevant text documents and expert interviews with 30 informants across different groups of stakeholders. Data analysis involved qualitative interpretation of collected data against concepts from the business model and Strategic Niche Management literatures. The results show that business model challenges initially were highly dependent on donor aid, which contributed to the launch and network creation of niche markets. Later, a shift to micro-finance and business startup models was observed, which showed promising development. Knowledge transfer and community empowerment were found to play an important role in developing new business models that involve consumers more closely. As this development is expected to take place more often, we expect that new opportunity pathways will develop in developing economies like Lebanon.
Highlights
Renewable energy sources have a crucial role in lowering carbon emissions and creating a sustainable environment
The two research questions that are central to this paper are: (1) What are the challenges of business and financial models in the transition towards decentralized solar energy driven systems? (2) And what are the promising opportunities for new business models in a developing country context?
As a starting point we address a number of papers from both the transition literature and the business model literature, paying special attention to articles combining both areas of research and the role that business models have in sustainable transitions
Summary
Renewable energy sources have a crucial role in lowering carbon emissions and creating a sustainable environment. Both scholars and practitioners are interested in understanding sustainable transitions, i.e., large-scale disruptive change of economic sectors, such as transport or housing [1]. The crucial role of business models is recognized in driving sustainable transitions [2]. Energies 2020, 13, 670 sustainability is to move into using novel innovative business models. A review of innovative business models presented four generic configurations. They pertain to start-ups, business model transformation, business model diversification, and business model acquisition, indicating that business models can play a significant role in transition [6]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
