Factor Affecting the Willingness to Pay for Solar Home System: An Empirical Study in Bangkok, Nonthaburi, Pathum Thani, and Samut Prakan Provinces, Thailand

  • Suthathip Suanmali Sirindhorn International Institute of Technology (SIIT), Thammasat University
  • Kanokbhorn Kokuenkan
  • Nutcha Lohananthachai Lohananthachai
  • Nichayakul Kumpong
  • Thanaphat Suwatanapornchai


The natural sources of energy such as sunlight, wind, rain, tides are more environmentally safe than traditional energy. Recently, many households in Thailand take advantage of renewable energy to power electronic devices and appliances at homes. The solar home energy system (SHS) provides the clean, efficient energy for residential applications including home appliances, lighting, computer and water pump. Critical to the success of encouraging consumers to use SHS for household consumption is to know whether they are willing to pay for one. In this study, the main purpose is to provide a framework to determine the willingness to pay (WTP) for SHS. This paper reviews several works of literature regarding the use of a mathematical model to determine WTP and factors affecting the WTP. A survey questionnaire is developed and contains questions about demographic information, attitudes, environmental awareness toward the use of the renewable energy, SHS. The survey also provides hypnotically situations that based on the idea of conserving and using renewable energy at home. The numbers of surveys are distributed randomly to residents in Bangkok, Nonthaburi, Pathum Thani, and Samut Prakan. The Contingency Valuation (CV) method will be applied to determine the WTP. Binary logistic regression is employed to identify significant factor affecting the WTP for SHS. The results showed that factors that influence willingness to pay are income, energy consumption behavior, prior experience with renewable energy, environmental awareness, and trust.