Abstract

Solar energy can play an important role in meeting global energy needs in a sustainable and environmentally friendly manner. However, despite solar energy’s accelerated growth in recent years, its level of diffusion is highly uneven when looked at on a global scale. The solar photovoltaic (PV) companies involved in the sales of PV systems are central to fostering diffusion. A company’s ability to devise and deliver value offerings that match customers’ needs is vital in encouraging the adoption of solar PV technology. The extent to which a company can address market needs and deliver value often depends on the business model it has adopted. The extant research has explored business models based on ownership structures, financing options, the effect of regulatory regimes and policies, industry practices, alliances, and business models for distributed generation and large-scale utility companies. However, the research to date, has mostly neglected the business models of solar companies involved in the sales and installation of solar PV. This qualitative study based on twenty semi-structured interviews contributes to the existing knowledge by exploring how sales and installation companies can enhance solar photovoltaic adoption by transforming customer interactions and engagement practices, which is a key element of a company’s business model. Companies’ ability to communicate value offerings and address consumer concerns is important in enhancing diffusion. The study highlights that transforming customer interaction and engagement practices can help companies broaden customer reach, improve the dissemination of information, reduce transaction costs and efficiently utilise market insights and trends.

Introduction

Renewable energy technologies (RETs) can play an important role in meeting global energy needs in a sustainable and environmentally friendly manner. Countries across the globe are looking to adopt measures and ways to support their development and increase their share of the energy mix [3]. Solar energy, in particular, has the potential to be used in large-scale commercial facilities, as well as serving needs at the household level [4]. Its improved efficiency, decreasing price and supportive policy regime have made solar one of the leading forms of renewable energy in the world [5], [6]. However, it is widely believed that this growth is far lower than its potential in most regions, and efforts should be made by all stakeholders to foster its development [7], [8]. The widespread adoption and use of RETs is a complex and multifarious process influenced by a number of personal, socioeconomic, technical, market-related and regulatory factors [9], [10], [11], [12]. The process is particularly challenging as the technology is disruptive in nature, and its successful diffusion requires changes in the existing structure and approaches as well as a change in mindset [13], [14].

Solar Photovoltaic (PV) companies, directly involved in interaction with consumers, dissemination and sales, become an important actor in this regard [15], [16], [17]. Companies’ ability to devise and deliver value offerings that match customer needs can play a vital role in encouraging adoption. Teece [18] suggests that the extent to which a company can address market needs and deliver value depends on the business model it has adopted. Business models direct a company’s course of action, help channel resources, address challenges and provide opportunities for growth [19], [20], [21]. RET companies often face challenges in developing market-centric business models that can enable them to thrive independently [22], [23]. A number of studies have explored business models for companies operating in the solar industry. However, an overwhelming majority of the existing research has focused on business models based on ownership structures [24], [25], [26], [27], financing options [1], [2], the effect of regulatory regimes and policies [28], [29], industry practices [30], alliances [31], business models for distributed generation [32], [33], [34] and large-scale utility companies [22]. To date, the research has overlooked customer interaction and engagement practices in the business models of conventional solar PV companies involved in the sales and installation of solar systems [35], [36], [37], [38].

Results

The result highlights that transforming customer interaction and engagement practices can help companies broaden customer reach, improve the dissemination of information, reduce transaction costs and efficiently utilise market knowledge and insights (Fig. 3).

۴٫۱٫ Broadening customer reach
۴٫۱٫۱٫ Effective means to reach customer
Companies need to adopt effective means to reach customers. Conventionally, in the early phase of market development, many companies have relied on direct approaches to reach customers through door-to-door sales, telephone marketing or similar measures. The approach worked for some but has largely been a difficult endeavour for companies seeking growth and high sales volumes due to the effort and cost involved in materialising a single sale. As one group sales manager suggested: “It was quite common for companies to directly reach out to customers. This seemed to have worked as companies were able to generate sales. … However, companies soon realised that the process is too labour-intensive and is costing too much, mainly in terms of labour hours.” On the other hand, the expense of conventional mass media marketing makes it unaffordable for companies operating in the PV sector. The manager further suggested, “…. for the vast majority of companies, the use of media such as electronic and print media has been out of reach. Companies selling solar systems are hardly of a size to afford such a thing [medium].”