Catalyzing solar photovoltaics diffusion? An assessment of the Energy Service Companies (ESCO) business model in Taiwan

Abstract: The central role of solar photovoltaics (PV) energy to facilitate transition of energy systems leads to the global diffusion of solar PV systems. Despite increasing deployment, the adoption of solar PV systems still faces numerous barriers. The existence of a business model can contribute to the removal of barriers, and further catalyze solar PV development. This study carries out an assessment to explore the function of the PV-Energy Service Company (ESCO) model in overcoming barriers to solar PV diffusion in Taiwan. A combined methodology of literature review and in-depth interviews is used to examine the barriers, and the operationalization of the ESCO model. The study finds that in Taiwan, barriers to solar PV diffusion involve social, financial, and legal-administrative aspects. Following the designs of the PV-ESCO model, ESCO companies address these barriers in different operational methods and approaches. It implies that the removal of barriers and the diffusion of solar PV installations happen under a synthetic effect of distinct operational ways. Moreover, the change model operationalization stimulates the market of residential-mounted PV installations, and could significantly conduce to the growth of this market segment.