The word contagion doesn’t typically conjure positive thoughts, but it’s an incredibly beneficial phenomenon for solar energy.
Solar energy has become increasingly popular with homeowners in recent years, contributing to the industry’s market value explosion. In 2019, the global solar market represented USD 68.579 billion — by 2026, this number is expected to grow to a whopping $267.747 billion, with a compound annual growth rate of 5.12%.
There are many reasons why homeowners have taken to solar technology. The cost has fallen rapidly in recent years, the durability and efficiency have increased, and concerns surrounding climate change and the environment are at an all-time high.
Interestingly, however, new research suggests another explanation for the prolific spread of solar energy — a contagion effect.
The word contagion doesn’t typically conjure positive thoughts, but it’s an incredibly beneficial phenomenon for solar energy.
Independent academic researchers from Yale University and the German Institute for Climate Impact Research confirmed that “the number of solar panels within [a short] distance from a house is the most important factor in determining the likelihood of that house having a solar panel when compared with a host of socio-economic and demographic variables .”
The explanation behind solar contagion is quite intuitive. Solar technology is still a relatively new product on the market, and many people still don’t understand it.
Applying for — or even researching — solar panels can be incredibly daunting, but it appears less so if a neighbour puts up panels themselves. Seeing other community members invest in solar acts as a reassurance that the technology represents a solid investment. Additionally, neighbours can ask questions, getting a first-hand account of the benefits of going green.
Some researchers have also suggested that environmentally conscious neighbours feel competitive — they don’t want their progressive credentials to be one-upped, so they’re more inclined to switch. A variety of solar companies (varying by location) also offer financial incentives for customer referrals, further encouraging word-of-mouth solar advocacy.
This contagion effect bodes well for the solar industry’s future, as customer procurement represents one of the most significant expenses for solar installation companies.
Knowledge of the solar contagion phenomenon could also enable targeted solar installations to create a snowballing effect of solar adoption in an area where there was none prior. As more and more homeowners adopt solar panels, the urge to conform to changing cultural norms — dubbed behavioural contagion — will get stronger and more pervasive.
In this sense, human instinct could help fight climate change by furthering the pace at which we decarbonize.
Few things could be described as positively contagious, but that’s exactly what solar energy is.
Homeowners should remember that their investment’s true impact is far more significant than they might have expected.
Purchasing a solar installation doesn’t just benefit your family through energy resilience and savings; it inspires others in the community to take action to better the lives of themselves and those around them. Adding just one rooftop solar system to a neighbourhood can be enough to set off an accumulating chain of positive externalities, and that’s something worth celebrating, as it goes to show the true value of solar energy in the 21st century.
