Determinants of Consumer Willingness to Invest in Green Energy Solutions: Perspectives from South Africa

Solomon Eghosa Uhunamure (), Clement Matasane (), Trevor Uyi Omoruyi and Julieanna Powell-Turner
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Solomon Eghosa Uhunamure: Institute for Humanities in Africa, University of Cape Town, Rondebosch, Cape Town 7700, South Africa
Clement Matasane: Department of Electrical and Electronic Engineering (DEEC), Cape Peninsula University of Technology (CPUT), Symphony Way, Bellville 7530, South Africa
Trevor Uyi Omoruyi: Faculty of Science, Business and Enterprise, University of Chester, Chester CH4 7AD, UK
Julieanna Powell-Turner: Faculty of Science, Business and Enterprise, University of Chester, Chester CH4 7AD, UK

Resources, 2025, vol. 14, issue 10, 1-23

Abstract: The energy sector holds critical importance for South Africa, particularly as a developing country grappling with persistent economic challenges and energy insecurity. These pressures have stimulated growing scientific and policy interest in renewable energy as a pathway to sustainable development. This study examines public perceptions and awareness of renewable energy technologies and estimates willingness to pay (WTP) for their increased integration into South Africa’s energy mix. By linking these objectives, the study provides insights into the social and economic factors that shape a just energy transition and informs targeted policies, investments, and engagement strategies to accelerate the adoption of renewable energy. A descriptive research design was employed, incorporating a systematic random sampling approach to ensure reliability and representativeness. Data were collected through structured questionnaire surveys conducted in both urban and rural households across Limpopo Province, South Africa. Findings reveal a generally positive public attitude toward the expansion of renewable energy, although knowledge levels remain moderate and are most pronounced with respect to solar energy systems. The mean household WTP for increased renewable energy penetration was estimated at ZAR 163.4 per annum. Binary logistic regression analysis identified eight statistically significant predictors of WTP: Education, Occupation, Income, Recognised Advantages (A1), Financial Incentive Schemes for RES (A3), Expansion Strategies for Renewable Energy (A4), Price Parity with Fossil Fuels (A7), and Interest-Free Financing Options (A8). These results highlight the importance of affordability, policy support, and tangible benefits in driving public acceptance. Overall, the findings highlight the potential for targeted policy and educational interventions to foster household participation and advance South Africa’s just energy transition.

Keywords: renewable energy sources; willingness to pay; households; binary logistic regression; South Africa (search for similar items in EconPapers)
JEL-codes: Q1 Q2 Q3 Q4 Q5 (search for similar items in EconPapers)
Date: 2025
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