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Solar Installation is Contagious

John Farrell
May 26, 2011  |  9 Comments

Adam Browning of Vote Solar writes about a recent study of the peer pressure effect of solar PV adoption.  The linked study notes that for every 1 percent increase in the number of installations in a single ZIP code, there's a commensurate 1 percent decrease in the amount of time until the next solar installation.  As he writes, "solar is contagious!"

I'm a data lover, so I thought it would be interesting to see what this looks like over time.  If you start with a neighborhood with 25 solar installations, where it was 100 days between the 24th and 25th installation, this peer pressure effect will reduce the time between installations to just 10 days by the 250th PV project. (see chart)

Of course, this process takes a while to unfold.  In fact, if solar PV was being installed only once every 100 days at the outset, the peer pressure effect will take over 15 years to reduce the time between neighborhood installs to 10 days. 

The second line on the chart (red) looks at the change if you start with 25 solar installations but with a time between installs of just 30 days.  By the 250th PV project, the time between installs has dropped to 3 days.  And because the lag time between installations started so much lower, the 10-fold drop in lag time takes less than 5 years. 

The basic formula – written another way – seems to be that a 10-fold increase in local solar installations will result in a 10-fold drop in the time between installations. This will hold true through the second iteration, as well.  In the neighborhood with an initial 100-day lag between installations, it will take another 15 years for the lag to drop to 1 day from 10 days, reaching this level when there are 2,500 local PV projects installed.

Perhaps I can amend Adam's statement: solar is contagious, but it's not yet very virulent.

Update (Adam's reply): "I would note that the current strain  (solar expensivus) is not a virulent as future strain (solar cheapus).  Minnesotans are expected to have low resistance — we are talking major epidemic levels of contagion."

Note: If only the experience cost curve for solar PV worked at the neighborhood level, since it typically shows a halving of installed cost for every 10-fold increase in total installed solar capacity (worldwide)! 

This post originally appeared on Energy Self-Reliant States, a resource of the Institute for Local Self-Reliance's New Rules Project.

Contact John Farrell at jfarrell@ilsr.org, find more content at energyselfreliantstates.org or follow @johnffarrell on Twitter

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

9 Comments

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Phil Manke
Phil Manke
June 3, 2011
I still see the media, (REW, too) getting all jiggy over PV when it remains the solar water heating apps that can save you the most $ in the long run. Don't forget, If any PV energy is used for heating purposes, you are pouring water in a gopher hole, STS. Wasted PV money, and SDHW is wholley doable by the home owner person.
I have both venues here, and it is solar HW that saves/pays the most by four or five times the rate of the PV. The PV was four times as expensive to install as the Coaxial tube heaters also. Both are fine ideas, but get the low hanging fruit first, for the best percs.
William Fitch
William Fitch
May 31, 2011
Hi:

I would rather have seen it titled, 'Group Conformity......' instead of peer pressure. Peer pressure has a more external and negative aspect to it where as group conformity is a bit more internalized from the start.

In the case of clean energy though, a good thing...

.....Bill
PS: I am using the word 'titled' loosely here...
Holger Lutz
Holger Lutz
May 29, 2011
A grass root educational effort combined with other institutional education initiatives will bear fruit in my humble opinion.
Howard Johnson
Howard Johnson
May 27, 2011
We shall see. I think some of this installation fever depends primarily upon the general education of the local population.

http://www.mpsaz.org/rmhs/staff/hljohnson/solar_information/
Kevin Eber
Kevin Eber
May 27, 2011
Being a resident in a current solar hotspot--Boulder, Colorado--I agree that this effect exists, but I don't think it's a true case of peer pressure. Rather, it's more like a group learning curve.

For instance, my neighbor Charlie put solar on his home, which led me to talk to him about it. Turns out that he's an installer, too, and next thing you know, I was living in a solar home. Someone down the street asked about my system, and I said, "Talk to Charlie," and now they're solar too.

Unfortunately, solar power remains a specialty item that requires you to find an expert who you can trust to guide you through the application process, especially in states with solar set-asides and REC and financing offers available through the utility. Once one neighbor proves it can be done with no problems, others are more willing to follow in their paths. Rather than keeping up with the Joneses, the model is probably closer to the way the aluminum siding business worked (back when that was popular); if your neighbors swears by their results and hook you up with an expert, you're much more likely to do it yourself.
Susan Fredricks
Susan Fredricks
May 27, 2011
Whether the reason is to keep up with the Jones or if the homeowner has done the research and understands the long term cost benefits of alternative energy, at the end of the day, going solar is a positive step to toward saving the environment.
Gerry Wootton
Gerry Wootton
May 27, 2011
You can predict human behavior with statistics - we are not immune to herd mentality. Do you need a smart phone because you need a smart phone or because 'everyone else' has one? (ask a teenager).

Small residential generation systems should be an appliance just like central air or any other 'have-to-have' home embellishment. Every new house should have to have a 240 VAC / 30 A charging outlet and a 240 VAC / 30 A generator inlet standard. Adding local generation should be as simple as adding an electric water heater, central air or a clothes dryer. We need to remove technical barriers to adding small-scale local generation. This would greatly accelerate adoption of small scale solar and wind.

Since Americans do everything on credit, borrowing in the form of 'lease-to-own' is a likely vehicle. When one looks at California data, if a leasing company were to give out 'free' 20 year leases and 'keep' the power produced, then based on available tax credits, current TOU rate structures and energy price inflation, they'd still be clearing ~10% effective interest. Of course, since the home owners value is increased, they will be expected to pay $100 per month or so which would make it a very attractive deal for any financial institution - far better than writing mortgages. Be that as it may, most users will appreciate the ease of access that a leasing deal provides. I'm expection the 'no money down, nothing to pay for 60 days' ads to start rolling soon ("and a free power washer with every purchase").
Russ Finley
Russ Finley
May 27, 2011
You can't predict human behavior with math curves. This is just keeping up with the Jones behavior, which drives almost all car sales not to mention most other sales as well. It's a good sign that solar panels are now competing for stature with pickup trucks.

Biodiversivist
Ralph Perez
Ralph Perez
May 27, 2011
What should also be contagious is the American consumer making a sincere effort to check out the financing of solar. Many are learning that they do not have to become a slave to a local bank for just another 20 year loan in the guise of 'pay as you go solar lease'. The utility company does not need to own it either. Oil companies are also jumping on the 'finance solar bandwagon'. Careful research into the best long term deal you can get on a solar install is the way to go. Remember - the price is coming down.. and it will quickly drop even further when the printing presses are loaded with solar ink.
Take a close look at your vehicle.. it may not look as attractive as the ads made it sound when you bought it, once your neighbor tells you how much they are spending on gas now that they charge the battery using solar... factor this in when you figure the total cost of the rooftop system.

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John Farrell

John Farrell

John Farrell directs the Energy Self-Reliant States and Communities program at ILSR and he focuses on energy policy developments that best expand the benefits of local ownership and dispersed generation of renewable energy. His latest paper,...
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