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This research finds that households, businesses and farms are more likely to install solar panels if others in their neighbourhood have already done so, and in particular if existing installations are highly visible.
Solar panels are expensive and can represent a risky investment. Learning from neighbours appears to spur installation because it decreases these concerns. The research also shows that imitation – in the form of ‘going green’ when others do so – is important in the choice to install solar panels. This effect has already been shown in the adoption of other pro-environmental behaviours.
Policymakers could use these findings to leverage these ‘social contagion’ effects to increase the adoption of solar panel technologies.
Key points for decision-makers
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