Solar Demand Study in Samoa
Understanding demand for solar in Samoa
This Solar Demand Study was designed to better understand the current and potential demand for rooftop solar among businesses and households in Samoa. The research aimed to assess the understanding, incentives, barriers, willingness and ability to pay for solar in Samoa by different market segments. The findings of this report are based on the results of telephone interviews with over 200 households, businesses and other organisations.
The findings provide stakeholders such as financial service providers, solar service providers and other businesses insights to design solar packages, develop sales and marketing campaigns, design financial products and increase the uptake of solar energy systems in Samoa. The findings can also support the Government of Samoa to better understand the potential for the uptake of rooftop solar systems and to consider how to integrate this form of renewable energy into their national energy strategy.
The survey revealed that households are generally aware of solar energy, perceive it positively and are willing to invest in solar to reduce their power bills, limit the impact of outages and reduce their emissions. While uptake of installed rooftop solar systems is low, 27 per cent of households have already invested in standalone solar products such as hot water systems and outdoor lighting. Eighty-one per cent of respondents were willing to invest in solar systems, with 67 per cent of those households willing to invest in solar systems using their own funds and 25 per cent was willing to explore loans or subscription models to finance a rooftop solar system. Many households are willing to make long-term investments to reduce their energy bills, with 40 per cent of households willing to invest more than WST1,000 in a rooftop solar system. Businesses surveyed reported high energy bills and expressed concerns about the impact of power cuts, including a loss of productivity and revenue. A lower percentage of businesses were willing to invest in solar systems than households, however those that were willing expressed high willingness to pay. Businesses also expressed interest in adopting solar power to reduce operational costs and support green initiatives. Financial constraints and the significant initial capital investment remain a barrier, as well as the high portion of businesses who were tenants rather than in their owning their premises. Businesses operating in the tourism sector in particular expressed high willingness to invest in solar and a high willingness to pay when compared to businesses in other sectors.
While demand results for both businesses and households are positive, there is a clear lack of understanding of the types of rooftop solar rooftop products available and the costs and potential benefits households and businesses could receive. This suggests a need for more targeted education around the available packages, their associated costs, benefits, financing options and pay back periods.
There are also opportunities to pilot innovative financial products or introduce government incentives to take advantage of this untapped demand and reduce the up-front capital investment required for households and businesses to adopt rooftop solar systems.
The results of this study suggest that if the supply of rooftop solar systems, financial products, educational marketing and Government incentives were in place, there could be a segment of households and businesses who would invest in rooftop solar. This would attract significant private finance to meeting Samoa’s renewable energy targets.
