Examining the challenges and drivers of solar photovoltaic adoption in the twin cities of Pakistan

Zainab Parveen, Verda Salman and Faisal Jamil

Utilities Policy, 2025, vol. 96, issue C

Abstract: After decades of electricity shortages, Pakistani households must transition to renewable energy for economic and environmental sustainability. With 87 % of homes lacking access to clean electricity, solar photovoltaic (PV) systems present a viable alternative. Beyond providing energy security, solar PV technology mitigates climate change by reducing reliance on fossil fuels. While PV systems have been successfully adopted in many countries, Pakistan's domestic solar potential remains largely untapped due to cost constraints. This study examines the adoption of solar PV systems among households in Pakistan's twin cities, considering socioeconomic and demographic factors. Although solar PV technology offers advantages over traditional power generation, several obstacles have hindered widespread adoption, with cost emerging as the primary barrier. The lack of sufficient government support has also slowed adoption. Other challenges include low household income, location of the house, and homeownership status. However, environmental concerns and the availability of solar equipment in local markets have encouraged some households to invest in solar PV systems. A three-stage random sample approach was used to select 501 twin-city families. Only 25 % of households have solar photovoltaic (PV) systems, despite 77 % using electrical backups during power outages. According to the Double Hurdle (DH) regression model, households with more educated heads are more likely to install solar PV systems. Homeownership and peer influence also boost adoption rates. Many households avoid switching due to the expense of upfront expenditures and unsuitable dwelling locations, such as apartments. Tax incentives and subsidies for home solar systems could boost adoption, help stabilize power supply, and mitigate climate change.

Keywords: Power outages; Solar photovoltaic (PV); Household adoption decisions; Innovation diffusion model; Double hurdle model; Pakistan (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:96:y:2025:i:c:s0957178725001201

DOI: 10.1016/j.jup.2025.102005

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