Homebuyers’ preference for installed PV systems – Discrete choice experiment

Abstract

Abstract Purpose - This paper contains the findings of dwelling buyers’ preferences towards installed photovoltaic (PV) system on their potential homes and thus provides an insight on the overall impact of PV systems to home purchasing. Design/methodology/approach - These preferences are determined by a discrete choice model that is based on stated preference data of dwelling buyers in the Eindhoven region. Findings - The most important findings are that a PV system is on average highly appreciated by dwelling buyers and that this appreciation is relatively larger by dwelling buyers that live in more urban/central neighborhoods. Research limitations/implications - This paper is essentially exploratory and raises a number of questions for further investigation such as determining the real estate value of installed PV systems. Practical implications - The findings would suggest that the diversity of homebuyers’ preferences would vary. It is dependent on the homebuyers’ personal characteristics but also on institutional settings of an energy system. Therefore, the provided insight must be regarded as local and further research is necessary for understanding the impact on the European residential real estate markets. Originality/value - This paper estimates the impact of the installed PV system on the housing choice by stated choice data on the local housing market. Keywords PV system, Preferences, Multi Nominal Logit (MNL), Willingness to pay (WTP), Eindhoven