Household adoption of solar energy technology does not occur by chance but is influenced by internal and external factors [13]. Internal factors are inherent to households and include socio-demographic characteristics (e.g., age, gender, household size, education, income, access to credit, etc.), technology awareness and intention of conserving energy, and external factors are related to cost, characteristics of the PV system, market system, institutions, and state policies [12]. Incentives provided through state policies have been identified in two previous studies as important drivers for the uptake of solar energy technology among householders [29, 30]. The Government of Seychelles has implemented several attractive policies and financial incentives to enhance household adoption of solar PV systems. A good example is the rebate scheme for rooftop PV systems. Under this scheme, commercial operators benefit from a 15% rebate of their total cost of purchase and installation of solar PV systems, whereas for householders, the refund is 25% [21].
The Seychelles Energy Efficiency and Renewable Energy Programme (SEEREP) is another financial incentive instituted by the GoS to promote the adoption of renewable energy technologies and energy conservation among households. This Programme facilitates access to low-interest loans from commercial banks and the Seychelles Credit Union with an interest rate of 5% annually within a 1–5 year loan period [21]. Under the SEEREP scheme, the customer would need to pay not more than 2.5% of the loan amount as a beneficiary contribution, and the standard loan processing fees will not be considered. The amount to be applied for by householders was increased from SCR 100,000 (equivalent to USD 7,400) in 2017 to SCR 150,000 (equal to USD 11,100) in 2019 due to associated expenses related to importation and installation of solar PV systems [21]. Incentives, especially regarding finances, significantly contribute to household uptake of solar PV. A study in Pakistan found that financial support by the government for installing small solar PV systems positively influenced householders' adoption decisions [13].
Therefore, the decision of households to adopt solar energy technology is influenced by an interplay of lifestyle choices, household socio-demographic, economic, and institutional factors, including awareness and access to information [12, 13, 28, 31]. A study on households that had adopted solar energy systems in rural Bangladesh showed a positive influence on household lifestyle, such as an increase in study time of children [32]. Benefits of a much better quality of life provided through reliable and clean energy sources influenced adoption in some instances – a view supported by Vasseur and Kemp [33]. However, the issue of context is essential given that Seychelles’ case occurs in a scenario with 100% access to electricity, with a flexible payment arrangement in installments for monthly energy tariffs. Therefore, the determinants of household adoption of solar PV systems might not be the same compared to the trend observed in other developing countries and the African continent, which has the least access to electricity globally [34].
However, previous studies have shown that household income, age, gender, household size and education of household heads, access to credit, peer effects, and household ownership are essential factors that influence the adoption decision of solar PV systems [12, 13, 28, 31, 35, 36]. Household wealth can overcome the cost barrier and therefore demonstrate a direct relationship with the adoption of solar PV, given that householders with relatively higher income have greater purchasing power. Education, on the other hand, does not demonstrate a direct relationship since other factors beyond knowledge and awareness influence adoption decisions [13]. That notwithstanding, consumers are known to give more importance to cost than environmental concerns when deciding between solar PV adoption [37]. This study further explained that householders are interested in technology to reduce costs and save money rather than for environmental consciousness.
To sum it up, household decision-making and adoption of solar energy technology determinants include environmental/biophysical, economic, socio-demographic, institutional, and political determinants [29, 38]. All of these determinants have been grouped into four broad categories by another study as follows: (i) the perceived relative advantage of the technology, (ii) the complexity of the innovation, (iii) social influence, and (iv) knowledge of grants and costs [33]. This study argued that the differences between adopters and non-adopters are attributed to adopters valuing the benefits of solar energy more than non-adopters. Thus the perception of the household is a critical determinant of their technology adoption. Seychelles Energy Commission is implementing a project to create a financial vehicle for consumers to own PV systems through a communal approach. The PV democratization 2.0 project aims to increase access to solar PV to households who cannot afford a rooftop PV system, access a low-cost loan, or have a roof that is not conducive to installing a PV system. Therefore, the adoption decision goes beyond the awareness of the benefits provided by the solar PV system, and the current study seeks to understand these drivers, especially in 100% access to electricity.