Behavioural and Socioeconomic Drivers Underlying Solar Adoption in Egypt’s Cairo and Giza: A Micro-Level Perspective

Abstract

Although Egypt falls within the solar belt, solar energy use on the household level remains very sparse. This research examines the factors driving and hindering households’ willingness to shift from fossil fuels to solar energy. The study evaluates the socioeconomic determinants of households’ willingness to adopt photovoltaic (PV) solar panels, based on a random distribution of 301 questionnaires in Cairo and Giza – two of Egypt’s most densely populated governorates. Two models were used? a Logistic Model and a Structural Equations Model (SEM) that regresses the willingness to install PV panels on household characteristics. For a deeper analysis of how socioeconomic differences shape renewable energy adoption, we separated the SEM model into behavioural and economic characteristics to be able to identify whether willingness to adopt solar PV systems, (or the lack of), stem from either set of factors. Accordingly, these insights can inform policy and support the implementation of targeted actions in both directions. Behavioural factors include household heads’ willingness to take a credit facility to finance solar PV panels, household heads’ level of education, living in rural versus urban areas, household size, whether any of the household members needed medical attention owing to heat waves during past year, household heads’ age and gender. Economic variables include household heads’ monthly income, whether the household owns a farm, whether the household owns gas at home, access to internet connection at home, access to credit facility, the number of times on average the household was disconnected from electricity per week during the past year, and education reflecting the socioeconomic level of the household head. Behavioural variables that positively contribute to adopting solar panels are revealed to be willingness to take a credit facility, age, education and household members needing medical attention owing to heat waves during past year; behavioural variables that contribute negatively to solar panel adoption include gender of the household head (in favour of females) and  the geographical dimension (in favour of rural areas). The economic model’s results reveal a positive relationship for the average monthly income of the household head, ownership of farmland, and the years of education of the household head. Households with access to internet at home is negatively associated with the willingness to install solar panels. Suggested policy implications include packages that target programs supporting low-income households.

 Keywords: PV Solar Panels, Behavioural & Socioeconomic determinants, Structural Equation Model, Logistic Regression Model