Factors Influencing Household Intention to Adopt Solar Photovoltaic in New Zealand

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Authors

Fernando, Weerahannadige Janaka Suranga

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Degree

Master of Applied Management

Grantor

Southern Institute of Technology

Date

2025

Supervisors

Reddy, Krishna

Type

Masters Dissertation

Ngā Upoko Tukutuku (Māori subject headings)

Keyword

Solar PV
Technology Adoption
Regression Analysis
New Zealand

ANZSRC Field of Research Code (2020)

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Abstract

Solar PV is a rapidly growing renewable energy source and the growth is mostly fueled by the reduced module cost and efficiency improvements in recent years. It also offers environmental benefits, energy independence and electricity cost savings. The PV is an attractive renewable energy source for New Zealand households and can support the country’s commitment to achieve net-zero carbon emissions by 2025. Despite the technology potential, the PV adoption is low and only about 2-3% of homes have installed solar PV by the end of 2024. Several studies have examined the solar PV adoption drivers and barriers globally. However, there is a lack of localised studies to identify specific factors which shape adoption intentions in New Zealand, especially with its limited policy support. This study aims to examine the factors influencing New Zealand households' intention to adopt solar PV, and assess household awareness and perception levels, identify significant predictors, and provide evidence-based recommendations. The study used a positivist philosophy and a deductive approach, and a quantitative survey design. Hypotheses were developed based on literature and technology adoption theories such as TPB, TAM, DoI, VBN and UTAUT. Data were collected from income-earning adult New Zealand households using a self-administered online questionnaire. A total of 109 valid responses were analysed using descriptive and inferential statistics. The results demonstrated that households have high awareness and perception towards solar PV. The regression analysis revealed financial considerations as the only significant predictor in New Zealand, and highlighted affordability, payback period and financial returns as the decisive factors of adoption intentions. Other factors, such as behavioural and social influences, environmental motivations, regulatory benefits, and technological concerns, did not show a statistically significant direct effect on adoption intentions. Qualitative responses confirmed quantitative findings and highlighted key concerns of high upfront cost, absence of meaningful direct government support, and fair export feed-in tariffs. Although New Zealand households exhibited favourable attitudes and high awareness of solar PV, economic feasibility remains the defining factor of household adoption. This highlights a critical gap that a strong positive attitude of adoption does not translate into actual adoption behaviour without economic affordability and strong long-term policy support. The study provides recommendations for regulatory, industry and household on strengthening direct financial incentives, expanding financing options with innovative ownership models, improving tariff transparency with long-term policy support, improve information accessibility with real-time digital data tools and further enhancing awareness. Therefore, strategies mainly focusing on upfront cost barrier reduction are important to enhance solar PV uptake among households in New Zealand.

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CC BY-NC Attribution-NonCommercial 4.0 International

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