This work uses an agent-based model to examine how installers of photovoltaic (PV) panels influence panel design and the success of residential solar energy. It provides a novel approach to modelling intermediary stakeholder influence on product design, focusing installer decisions instead of the typical solar stakeholder foci of the final customer (homeowners) and the designer/manufacturer. Installers restrict homeowner choice to a subset of all panel options available, and, consequentially, determine medium-term market dynamics in terms of quantity and design specifications of panel installations. This model investigates installer profit-maximization strategies of exploring new panel designs offered by manufacturers vs. exploiting market-tested technology. Manufacturer design decisions and homeowner purchase decisions are modeled. Realistic details provided from installer and homeowner interviews are included. For example, installers must estimate panel reliability instead of trusting manufacturer statistics, and homeowners make purchase decisions based in part on installer reputation. We find that installers pursue new and more-efficient panels over sticking-with market-tested technology under a variety of panel-reliability scenarios and two different state scenarios (California and Massachusetts). Results indicate that it does not matter if installers are predisposed to an exploration or exploitation strategy — both types choose to explore new panels with higher efficiency.
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ASME 2017 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference
August 6–9, 2017
Cleveland, Ohio, USA
Conference Sponsors:
- Design Engineering Division
- Computers and Information in Engineering Division
ISBN:
978-0-7918-5812-7
PROCEEDINGS PAPER
Examining the Influence of Solar Panel Installers on Design Innovation and Market Penetration Available to Purchase
Ekaterina Sinitskaya,
Ekaterina Sinitskaya
Stanford University, Stanford, CA
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Kelley J. Gomez,
Kelley J. Gomez
Stanford University, Stanford, CA
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Qifang Bao,
Qifang Bao
Massachusetts Institute of Technology, Cambridge, MA
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Maria C. Yang,
Maria C. Yang
Massachusetts Institute of Technology, Cambridge, MA
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Erin F. MacDonald
Erin F. MacDonald
Stanford University, Stanford, CA
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Ekaterina Sinitskaya
Stanford University, Stanford, CA
Kelley J. Gomez
Stanford University, Stanford, CA
Qifang Bao
Massachusetts Institute of Technology, Cambridge, MA
Maria C. Yang
Massachusetts Institute of Technology, Cambridge, MA
Erin F. MacDonald
Stanford University, Stanford, CA
Paper No:
DETC2017-68338, V02AT03A026; 15 pages
Published Online:
November 3, 2017
Citation
Sinitskaya, E, Gomez, KJ, Bao, Q, Yang, MC, & MacDonald, EF. "Examining the Influence of Solar Panel Installers on Design Innovation and Market Penetration." Proceedings of the ASME 2017 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference. Volume 2A: 43rd Design Automation Conference. Cleveland, Ohio, USA. August 6–9, 2017. V02AT03A026. ASME. https://doi.org/10.1115/DETC2017-68338
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