Factors on regional installations of residential photovoltaics in China

Residential photovoltaics (PVs) are a key lever of China's energy transition strategy to safeguard energy supplies, reduce environmental pollution and curtail CO2 emissions. With the objective to understand the explanatory power of the extended definition of compatibility in the diffusion of innovation theory and the influence of the rural population on regional adoption of residential PVs, this study investigates the relationship between residential photovoltaic (PV) installations in cities at the prefecture level, and rural population and other prevalent explanatory variables, using spatial econometric models to a recently available dataset in China. The results indicate a statistically significant positive relationship between rural population and regional installations of residential PVs, validating that the extended definition of compatibility can still contribute to the explanation of innovation diffusion. Moreover, there is a statistically significant positive relationship between GDP per capita, electricity price, and solar irradiation, and regional installations of residential PVs, with significant spillover effects across cities. Our study contributes to the expansion of the definition of compatibility and improves the insight into the determinants on regional diffusion of residential PVs. This is helpful in orienting economic and developing policies related to residential PV deployment in China and other developing countries.