The Economic Value of New Sustainable Products: The Case of Photovoltaic Thermal (PVT) Hybrid Solar Collectors

Abstract

Among green energy technologies, solar power is a promising technology in the net-zero era of the power industry. Conventional solar modules have decreasing efficiency weaknesses as the temperature rises, whereas photovoltaic thermal (PVT) systems do not remove heat from the module or lower the temperature. However, the profitability of PVT systems has been underestimated. The profitability of new convergence products, such as PVT technology, entering the market for the first time allows for the evaluation of the appropriate starting price and policy requirements to support the product’s market entrance. We used the contingent valuation method (CVM) to solve this problem. The survey derived the respondents’ mean willingness to pay (WTP) and the total amount of social benefits. Among these CVM models, the one-and-one-half-bound (OOHB) spike model was used to distinguish zero WTP. Based on a survey of 300 households, respondents were willing to pay an additional yearly average income tax of KRW 10,608 (USD 7.90), and the total social benefit of PVT technology was calculated to be KRW 145 billion (USD 108 million). This result shows that individuals evaluate the value of PVT as 3.69% of their monthly electricity bill and 2.8% of their monthly gas bill. Several additional factors that influence WTP were analyzed, indicating a high possibility of PVT adoption by individuals who have replaced or are planning to replace photovoltaic (PV) modules. This study is significant because it examines the economic value of PVT and proposes a focus group for the effective market entry of new carbon neutrality products.