Residential solar photovoltaic adoption: An in-depth review on potential, main barriers and related incentives

The promotion of solar photovoltaic (PV) in the residential sector is not only crucial for achieving sustainable development targets but also for facilitating household clean energy transition and improving welfare. Despite the promotion of residential solar PV has achieved a considerable scale, the progress still faces challenges in meeting the envisioned goals. Understanding the critical barriers and identifying effective incentives are important for the further diffusion of residential PV. This study conducts a systematic review on residential PV adoption with a focus on market potential assessment, key barriers, and related incentives. The findings indicate that the technical potential of residential PV is substantial to meet future electricity demand, and many regions have reached economic feasibility even without subsidies. However, high upfront costs, lack of recognition, and product-related problems are critical barriers influencing household adoption. Policy incentives, such as subsidies, rebates, and targeted programs, have demonstrated significant positive effects on PV promotion. Peer effects have emerged as an important information diffusion for encouraging PV installation. Innovations in business models and co-adoption of sustainable technologies show great potential to reduce costs and attract consumers’ interests. Finally, future research is highlighted to focus on improving assessment accuracy, addressing barriers faced by different groups, strengthening data management and analysis in developing countries, and examining consumers’ preferences.