Quantitative analysis of the drivers behind the adoption of photovoltaic installations in Sweden.

Abstract: Solar power generation capacity have grown significantly in the past years, both globally andin Sweden. This increase is often attributed to policy incentives such as subsidy schemes. Thereexists a large discrepancy between the regions of Sweden in their installed solar generationcapacity. However, financial incentives does not vary between regions, asking the questionwhat factors are causing the discrepancy. This paper addresses this issue by analyzing thefactors affecting the installment of solar PV systems, using a 6-year panel data set for all 25regions of Sweden. Results show that household income is a highly significant predictor ofsolar capacity additions. Electricity price is also found to have some degree of significance aswell. Results also points to demographic characteristics such as lower median age, higherpopulation density and higher educational attainment are positively correlated with PV capacitygrowth. These results underline the importance of financial considerations and factorsrepresenting openness to new technologies in the decision to adopt solar. Regional interventionstargeted at spreading awareness and increasing acceptance of solar PV might be useful forpolicy makers to consider.