Spatial Characteristics of the Diffusion of Residential Solar Photovoltaics in Urban Areas: A Case of Seoul, South Korea

Mini-solar photovoltaics, which are installed on apartment balconies, are rapidly spreading in Seoul, South Korea. Seoul has implemented a policy to diffuse mini-solar photovoltaics in apartments for energy transition since 2012. The policy considers compact land use and a large population of the city. This study examines a variety of variables in relation to the adoption of mini-solar photovoltaics. In particular, we focus on peer effects, namely, those of spatially adjacent, previously installed mini-solar photovoltaics. As apartment characteristics, four variables are selected to assess both within and between apartment complexes: one for the density of adopters as a within-complex variable and three for the number of adopters in the 500 m, 1 km, and 1.5 km radius of apartment complexes as between-complex variables. A major finding is that peer effects significantly contribute to the new adoption of mini-solar photovoltaics. Implications of this finding are discussed in an urban context.