Abstract:
The acceptance and slow growth of solar energy in Sri Lanka is a major barrier. The aim of this study was to identify
the factors which are more considerable when adopting solar energy technology. Technology Acceptance Model
(TAM), Diffusion Of Innovation (DOI), Theory of Planned Behavior (TPB) and Transaction Cost Economics theory
(TCE) are the theories that are used to develop the research foundation. Basically five key factors have been identified:
namely Relative Advantage, Perceived Behavioural Control, Perceived Ease of Use, Awareness of the Technology and
Perceived Cost. A self-administrated questionnaire was conducted to collect data from a sample of 384 respondent
households. Structural Equation Modeling (SEM) was used to test the hypothesis. The result of the study indicates
that all the key factors have a positive impact with adoption of solar energy technology. Creating better awareness of
the benefits of solar energy usage and increase awareness among people towards their responsibility to use green
energy sources can encourage the rate of usage amount in domestic consumers. Providing financial support, obtaining
continuous feedback and providing free technical advisory schemes are also good practical implications. From a
managerial viewpoint these findings can be used for strategic planning to determine effective marketing activities to
change customer’s intention to ensure sustainable business growth. Important policy making decision and investment
decisions can be taken by these estimates. In consumer’s perspective the study enhances knowledge on solar energy
as a power source of green energy for small scale households in urban areas. Though geographical unfairness act as
the main limitation, since the high density of population, income level and urbanization of observed area, the result
can be generalized to the urbanized households.
