Active peer effects in residential photovoltaic adoption: evidence on impact drivers among potential and current adopters in Germany

TL;DR

This study investigates how subjective peer evaluations influence active peer effects in residential photovoltaic adoption in Germany, highlighting the importance of perceived credibility and trustworthiness in peer influence processes.

Contribution

It provides empirical evidence on the mechanisms of active peer effects, emphasizing the role of subjective peer evaluations in different stages of PV adoption decision-making.

Findings

Peer effects positively influence PV adoption beliefs and information-seeking behavior.

Perceived credibility and trustworthiness of peers significantly increase their influence.

Attributes like competence and likability are more influential than physical proximity.

Abstract

While the importance of peer influences has been demonstrated in several studies, little is known about the underlying mechanisms of active peer effects in residential photovoltaic (PV) diffusion. Empirical evidence indicates that the impacts of inter-subjective exchanges are dependent on the subjective mutual evaluation of the interlocutors. This paper aims to quantify, how subjective evaluations of peers affect peer effects across different stages of PV adoption decision-making. The findings of a survey among potential and current adopters in Germany(N=1,165)confirm two hypotheses. First, peer effects play a role in residential PV adoption: the number of peer adopters in the decision-maker's social circle has a positive effect on the decision-maker's belief that their social network supports PV adoption; their ascription of credibility on PV-related topics to their peers; and their interest in actively seeking information from their peers in all decision-making stages. Second, there is a correlation between the perceived positive attributes of a given peer and the reported influence of said peer within the decision-making process, suggesting that decision-makers' subjective evaluations of peers play an important role in active peer effects. Decision-makers are significantly more likely to engage in and be influenced by interactions with peers who they perceive as competent, trustworthy, and likeable. In contrast, attributes such as physical closeness and availability have a less significant effect. From a policymaking perspective, this study suggests that the density and quality of peer connections empower potential adopters. Accordingly, peer consultation and community-led outreach initiatives should be promoted to accelerate residential PV adoption.