Date

4-2009

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Zenaida M. Sumalde

Abstract

This study aimed at determining the cost effectiveness and the factors affecting willingness to adopt photovoltaic systems (PV) among selected households in Laguna and Batangas provinces. In order to do this, cost effectiveness analysis and logistic regression were used. Sixty households from the Laguna area or the MERALCO- powered households were randomly selected and surveyed, while 40 from the Batangas area or the BATELEC-powered households. Cost per kilowatt hour of alternative sources of electricity (conventional and PV system) were computed to determine which alternative is the most cost effective. Costs for the PV system include initial investment, battery replacement cost, and annual operating and maintenance costs. For the conventional system, cost included the charge per kilowatt hour considering annual growth rates of charges. The total cost of alternatives were projected over 25 years and discounted at 15%, 12% and 8%. The PV system proved to be more cost effective than MERALCO and BATELEC. Majority of the households were willing to use the PV system as long as it is cheaper. However, due to high initial costs some of the respondents are not willing to use the technology. Financial incapability is the largest hindrance in adopting the technology. Furthermore, BATELEC users are more willing to use the PV system compared to MERALCO users. This may be due to frequent brownouts and non-satisfactory services experienced by some households in the Batangas area. For the regression analysis, three runs were made, one for each survey area and a full regression. For MERALCO, the results showed that gross monthly income and awareness in PV affect households’ decision to adopt the technology. On the other hand, for the BATELEC USERS, household size and gross monthly income were the significant variables. For the full regression wherein the service provider dummy was added, only gross monthly income and awareness in PV system proved to have an influence over households’ decision to adopt PV systems. vi Based on the findings, if lowering the initial cost is not possible, one of the government’s option is to provide loans and subsidies to those who are willing to use the technology. To expand further the awareness of people regarding PV systems, policymakers can opt for information campaigns and product introductions.

Language

English

Call Number

LG 993.5 2009 E2 C48

Document Type

Thesis

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