Can Third-Party-Ownership Business Model Overcome Barriers to Adopt Rooftop Solar Pv-Battery Systems? Implications from the Case of Miyako Island, Japan

Third-party-ownership (TPO) model for rooftop solar PV-battery systems draws attention as the FiT is phased out and solar curtailment becomes prevalent. Past research has not explored how the TPO model changes motivations and barriers, and increases actual adoption. Against this backdrop, this paper explores how and under what conditions the TPO model can change them, taking Miyako Island in Japan as a case, employing the Theory of Planned Behavior as an analytical framework, and applying Structural Equation Modeling, logistic regression, and coding as methodologies. We find that the TPO model is likely to increase both intention and actual adoption by reducing perceived technology and management risk. It increases the intention of adopting PV-battery systems by enhancing adaptive capacity to natural disasters, but discourages adoption by the long-term contract with a high cancellation fee, the oscillating RES-E policy, and the conflicting interests over back-up capacity. This result brings us three policy implications for the TPO model to overcome the barriers to wider adoption: a firm commitment of the central government to RES-E-based electricity systems; proper valuation of and compensation for back-up capacity of PV-battery systems as system flexibility and adaptive capacity; and enhancing proactive peer effects by municipalities and grid companies