Collaborative Research: Increasing Solar Panel Adoption by Modeling the Interrelated Impacts of Design Decisions, Industry Incentives, Public Policies, and Market Response

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Solar Photovoltaic (PV) panels convert energy from the sun into electricity. They emit zero pollutants during electricity generation and thus decrease particulate and greenhouse gas emissions when they replace electricity from coal-fired power plants. Additionally, PV-panel use increases U.S. energy independence and reliability due to decentralized electricity production, and decreases the burden on overstressed and aging coal-fired power plants. While PV technology is increasingly efficient and affordable, it currently accounts for only 1.13 percent of U.S. electricity generation. This award uses a novel combination of mathematical models and consumer survey research to discover design insights and policy measures that will increase adoption of PVs by U.S. households. The research is interdisciplinary, drawing from engineering design, solar technology research, marketing, economics, public policy, psychology, and applied mathematics. The objective of this research is to investigate and improve U.S. residential PV panel adoption by creating an innovative model of dynamic and interrelated decisions made by manufacturers, policymakers, installers, and consumers. The model will include complex decisions for both competing providers (installers) and consumers (homeowners) represented using a game-theoretic approach. Consumer and installer responses to market conditions will be estimated using online survey analysis, providing preference/decision models from real-world data. Consumer preferences will be modeled as responsive to policy campaigns. For example, education and advertising will influence whether consumers will buy PV panels or which panels they will buy. This is a significant improvement over similar modeling approaches, which assume stagnant consumer preferences. Combining this approach with an innovative funnel decision model for consumer purchases will allow for the exploration of the impact of non-financial policy campaigns, such as educational campaigns. Existing engineering and cost models of PV panels act as the backbone for manufacturer pricing and design decisions. Policy models will be built from existing policy measures as well as new options based on results of model simulations and hypothesis testing. A web-based teaching model of this large system of interrelated stakeholders and decisions will help students to understand their engineering education and future career as part of a larger system that can benefit society, for example, by decreasing pollution and increasing U.S. energy independence.