[The Vector] Consumer Attitudes Revealed in Latest Solar Survey

San Jose State University and SolarTech conducted a study recently in Silicon Valley to understand consumer attitudes toward solar energy and solar power for home use. Silicon Valley (Santa Clara County) is considered a bell-weather county in a state that is more aware of solar and alternative energy than the typical American.

The goal of the survey was to analyze consumer awareness, preferences, perceptions and ultimate attitude to adoption of solar energy by homeowners.

A brief profile of the respondents:

• 62% were aged 45 to 54, with 19% aged 55 to 64.
• 74% reported annual income of $100,000 to $250,000+
• 81% had either a Bachelor’s or Graduate degree
• 49% said they intend to purchase a solar system in the future, and 55% have researched solar systems. 11% currently own a solar system.

The profile shows that a majority of the respondents are in general educated, with financial means and have some knowledge of solar.

Solar Perceptions

It was no surprise that 88% of the respondents said that solar is “good for the environment” but 82% also said solar is “expensive” and 39% believe solar is still “unreliable.”  Only 11% believe solar is currently affordable – perhaps matching up to the 11% of respondents who said they currently own solar.

What is most important to the respondents when considering a purchase of a home solar system:

97% said price was most important.

94% cited reliability and warranty.

93% said customer service was important.

91% replied that financial incentives were essential.

At a lower level of consideration before purchasing home solar:

72% said installation ease was important to them.

67% were concerned with aesthetic appeal.

57% mentioned financing options and 47% said a zero-down loan would be a helpful consideration in a purchase.

39% cited a zero-down 15 year lease option as helpful in considering a purchase.

83% of the respondents said they were intending to purchase 24 months from now or longer, while only 3% said they were immediately looking to purchase and 11% said they were a year out from a purchase.

The survey asked respondents to name (unaided) awareness of any solar companies – 63% could not accurately recall any solar company that provides solar systems for residential use. This is an important point for solar companies to know in any market – branding, advertising and energy education seems to be a weak point with room to soar.

Of the few who could name a company, among those who already own solar systems, the 3 company names were Solar City, Akeena and SunPower/REC. Among those who do not own solar systems, 6% named Akeena, 3% named SunPower and 2% named Solar City.

The survey indicates that while consumers believe solar energy is good for the environment and they are considering such investments, the perceptions of affordability and reliability are not good – in fact, they are poor. Companies who wish to build a brand should include compelling reasons and data, and should educate.

In a webinar discussion with key players of the survey (held March 18^th, 2011), several key points were made:

1)      Installation companies need to make proposals easy to understand.

2)      Consumers need access to unbiased information such as real performance of currently installed systems, simple technology explanations of what solar can and cannot do.

3)      Marketing and education of companies and solar use to mainstream American, as Amory Lovins at the Rocky Mountain Institute said, to address concerns of “hot showers, cold beer and lit rooms.”