Factors affecting the adoption of solar thermal technology : A study on Food and Chemical Industries

Abstract: The rising concerns of climate change and global warming have made the current practices of industrial energy generation and consumption highly unsustainable. There is a growing awareness of the importance of renewable energy use in addressing climate change and establishing sustainable development. One of the renewable sources which have gained popularity over time is solar energy. Among the various solar technologies, one potential segment is solar thermal technology which involves solar thermal collectors. This technology mainly concentrates on providing industrial process heat across a wide range of temperature, and it's classified within the industry of Solar Heat for Industrial Process (SHIP). Though the SHIP technologies show strong technical feasibility, only few industries employ solar heat and there is a decreasing trend of adoption.  Hence, this research aims to understand the reasons for decreasing adoption by studying what and how are the factors affecting the adoption of solar thermal technology. This is done by performing a qualitative study across two industrial sectors food and chemical in the region of Middle East and North Africa (MENA). The obtained data by conducting semi-structured interviews are analysed using the Technological-Organization-Environment (TOE) theoretical framework.  The results from the study show that there are 9 important factors affecting the adoption of solar thermal technology that are categorized into technological factors (reliability, flexibility, financial attractiveness, and competitive alternatives), organizational factors (management support and resources) and environmental factors (regulatory environment, technology support provider and competitive pressure). Apart from the technological factors of lack of reliability and financial attractiveness, the organizational factors of lack of resources and the environmental factor of low incentives in MENA region, the aspect of cheap competitive alternatives especially in the MENA region, is causing the decrease in adoption within the food and chemical industry.