Moderating effect of subsidy policy on intention to purchase residential rooftop solar panel systems

Abstract

PurposeThe adoption of residential rooftop solar panel systems (SPS) in India is at a nascent stage. Therefore, this study aimed to examine the factors affecting consumers’ intention to purchase SPS by expanding the theory of planned behavior (TPB) with three environmental psychology factors. The study was targeted at potential users’ intention to purchase SPS, thus it further explored the moderating role of perceived government subsidy policy (PGSP) in determining consumers’ purchase intention of SPS.Design/methodology/approachUsing G*power software, the minimum sample size of 189 was calculated; accordingly, 292 valid responses were gathered from potential users of SPS from three Indian states, namely Rajasthan, Punjab and Haryana, via an online questionnaire survey with the help of purposive sampling method. Structural equation modeling technique of partial least squares was employed to analyze the data.FindingsResults demonstrated that attitude, subjective norms, perceived behavioral control, perceived consumer effectiveness (PCE) and PGSP significantly influence purchase intention of SPS. Green trust and green self-identity did not influence the purchase intention of SPS. Further, PGSP strengthens the effect of attitude, green trust, PCE on purchase intention of SPS while it weakens the effect of subjective norms on purchase intention of SPS.Originality/valueThis study contributes to the existing literature by integrating green trust, green self-identity, PCE and PGSP into the TPB model to better understand factors affecting consumers’ purchase intention towards SPS in India.