Households' Willingness To Pay for Solar Photovoltaic (PV) Technology Panels in Santo Tomas, Batangas, 2025

Date

6-2025

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Arvin B. Vista

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

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Abstract

This study entitled “Households’ Willingness to Pay for Solar Photovoltaic (PV) Technology Panels in Santo Tomas, Batangas” aimed to estimate the willingness to pay (WTP) of households in Santo Tomas, Batangas for adopting solar photovoltaic (PV) technology panels. Specifically, it sought to: (1) determine the preference of the households in Santo Tomas, Batangas towards electricity choice; (2) determine the average amount that households in Santo Tomas, Batangas are willing to pay for solar PV panels; (3) analyze the factors affecting the WTP of households in Santo Tomas, Batangas for solar PV panels; (4) evaluate barriers to adopting solar PV technology of households in Santo Tomas, Batangas; and (5) recommend possible course(s) of action that would promote the use of solar PV energy as an alternative energy source in Santo Tomas, Batangas.

A total of 100 respondents were surveyed across all 30 barangays of Santo Tomas. The Turnbull Lower-Bound Mean WTP method was used to estimate their WTP. A 5-point Likert scale assessed awareness of solar PV, and logistic regression analysis determined the relationship between WTP and variables such as bid price, age, education, electric bill, income, household size, hours of power interruption, investment cost, awareness, and access to financing. Descriptive statistics supported the analysis.

Results showed that the general mean WTP was PhP6.66 per kWh. Low-income households had the highest WTP at PhP7.80 per kWh, followed by middle-income at PhP6.60 per kWh, and high-income at PhP6.50 per kWh. The regression analysis revealed that only bid price and hours of power interruption were statistically significant at the 5% level. Higher bid prices reduced the likelihood of WTP, while more frequent power interruptions increased it. Other variables, such as income, education, and awareness, did not significantly affect WTP. Key issues identified included frequent power interruptions and high electricity costs, which contribute to household dissatisfaction with current providers. Barriers to adopting solar PV included concerns about maintenance, repair, and high upfront costs.

The study recommends that solar PV providers and the local government effectively communicate the long-term cost savings and reliability of solar PV systems. Providing realistic projections of electricity bill reductions and simplifying information on system maintenance may increase adoption. Moreover, the local government should consider offering financial incentives or subsidies for early adopters, especially among low- to middle-income households who demonstrated a relatively high WTP.

Language

English

LC Subject

Solar panels, Willingness to pay, Consumers' preferences

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 A14 B87

Notes

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Document Type

Thesis

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