Sun-powered solutions: Rural residential solar investment for climate and air quality policies

Rural households in South Asia heavily rely on fossil fuels, leading to increased Greenhouse Gas (GHG) emissions, air pollution, and landfill loads. This research explores the advantages of a renewable energy support program that subsidized the purchase and installation of thermal solar panels. Specifically, it investigates the effectiveness of solar panel subsidies funded by both the Chinese government and local authorities in Pakistan. Local government offices facilitated the survey by providing a households’ list that received subsidizations for the installation of solar panel. In September and October 2023, 227 completed questionnaires were collected. The study employs statistical analysis to identify elements impelling the purchase value of solar panels and energy bill savings on the monthly basis for rural households after installation. Results indicate that older respondents tend to pay more for panels, while higher education levels are associated with lower panel costs and energy bill savings. Farmers, those valuing subsidies, and those preferring domestically manufactured panels tend to pay more for panels. Additionally, location affects panel prices compared to a reference county. Conversely, positive attitudes toward solar energy, anticipation of bill reduction post-panel purchase, and heating larger areas in homes correlate with increased energy bill savings.