Is solar PV a viable business model?

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Should retailers adopt a solar electricity sales model?

Not only does the limited adoption of the solar electricity sales model indicate that a close fit in this dimension is insufficient for adoption to occur, but there is also a widespread adoption of solar models that have a poorer fit with – or even threaten – the existing value of the retailers’ core business, such as PV turnkey sales.

Are solar business models aligned with existing business models?

More specifically, the paper maps the solar business models adopted by the 30 largest electric utilities in Sweden and analyses to what extent these models strategically fit, i.e. are aligned with the incumbents’ existing business, corporate strategies, and external environment in order to answer two research questions:

Is solar PV a viable business model?

Regarding solar PV, it has been argued that it does not fit very well with the incumbent electric utility business model, which is focused on large-scale, centralized production and/or sales of electricity as a commodity ( Huijben and Verbong, 2013; Rosenbloom and Meadowcroft, 2014 ).

What is a solar business model?

This model specifies how income is earned, either by selling the energy generated or by using the electricity produced on-site and saving money. The solar business model affects many aspects, such as who owns the project, how much investment is needed, how operations and maintenance are handled, and what returns the stakeholders can expect.

How can a market-centric business model help solar PV companies?

The disruptive nature of solar PV technology, limited awareness and high financial requirements often make solar PV disadvantaged compared with its competition , . A market-centric business model can help solar PV companies address consumers’ concerns while offering solutions to enhance its adoption.

Do scholars and firms understand solar business models?

There is a mismatch in how scholars and firms understand solar business models. The business models of 241 solar firms in Sweden were mapped and analyzed. Policymakers must understand solar business models from a firm perspective. Customers and their needs are central in the business models of solar firms.