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

  • Suthathip Suanmali Thammasat University
  • Kanokbhorn Kokuenkan
  • Nutcha Lohananthachai Sirindhorn International Institute of Technology
  • Nichayakul Kumpong Thammasat University
  • Thanaphat Suwatanapornchai Thammasat University
Keywords: Contingent valuation method, Solar home system, Willingness to pay, Bidding game question, Adoption process, Binary logistic regression, Environmental awareness, Green product.


Natural sources of energy such as sunlight, wind, rain, and tides are more environmentally safe than traditional carbon-based energy resources. Recently, many households in Thailand have taken advantage of renewable energy to power electronic devices and appliances in their homes. The solar home energy system (SHS) provides clean, efficient energy for residential applications including home appliances, lighting, electronics and the household’s 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 literatures regarding the use of mathematical model to determine WTP and factors affecting the WTP. A survey was developed and contains questions about demographics information, environmental awareness toward the use of renewable energy, and SHS. The survey also provides hypnotically situations based on the idea of conserving and using renewable energy at home. Surveys were distributed to residents in Bangkok, Nonthaburi, Pathum Thani, and Samut Prakan. The Contingency Valuation (CV) method was applied to determine the WTP. Binary logistic regression was employed to identify significant factors 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.