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COST EFFECTIVENESS AND FACTORS AFFECTING DECISION TO ADOPT PHOTOVOLTAIC SYSTEMS AMONG SELECTED HOUSEHOLDS
IN LAGUNA ANG BATANGAS PROVINCES
AULAIRE R. CHUPUNGCO
SUBMITTED TO THE FACULTY OF THE DEPARTMENT OF ECONOMICS COLLEGE OF ECONOMICS MANAGEMENT
UNIVERSITY OF THE PHILIPPINES LOS BAÑOS IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE DEGREE OF
BACHELOR OF SCIENCE IN ECONOMICS
APRIL 2009
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University of the Philippines Los Baños
COLLEGE OF ECONOMICS AND MANAGEMENT College, Laguna
THESIS MANUSCRIPT
ECONOMICS 200
Thesis of : AULAIRE RECTO CHUPUNGCO
For the degree of : BACHELOR OF SCIENCE IN ECONOMICS MAJOR IN NATURAL RESOURCES
Title : COST EFFECTIVENESS AND FACTORS AFFECTING
DECISION TO ADOPT PHOTOVOLTAIC SYSTEMS AMONG SELECTED HOUSEHOLDS IN LAGUNA ANG BATANGAS PROVINCES
APPROVED: JAIMIE KIM BAYANI Reader: _______, 2009
APPROVED: ZENAIDA M. SUMALDE Adviser: _______, 2009
APPROVED: AMELIA L. BELLO Dept. : _______, 2009 Chair
APPROVED: LIBORIO S. CABANILLA Dean: _______, 2009
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TABLE OF CONTENTS
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BIOGRAPHICAL SKETCH iii
ACKNOWLEDGMENT iv
ABSTRACT v
TABLE OF CONTENTS vi
LIST OF TABLES viii
INTRODUCTION
Background of the Study 1
Statement of the Problem 2
Significance of the Study 4
Objectives of the Study 4
REVIEW OF RELATED LITERATURE
Solar Energy 7
Photovoltaic Systems 8
Government Projects 9
Other Countries 12
Cost Effectiveness 14
METHODOLOGY
Theoretical Framework 15
Conceptual Framework 16
Place and Scope of Study 17
Data and Sources 17
Sampling Procedure 19
Analytical Procedure 20
RESULTS AND DISCUSSION
Socio-Demographic Characteristics 24
Electricity Consumption 26
Comparison of Cost Effectiveness of Conventional and PV System 28
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Awareness and Perception on PV System 29
Willingness to Use of PV System 31
Conditions that would Entice Respondents to Adopt PV System 34 Factors that would Affect PV Adoption 35
SUMMARY AND CONCLUSION 40
LIMITATIONS OF THE STUDY 42
REFERENCES 43
APPENDICES 45
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LIST OF TABLES
Table Table Title Page
1 List of Power Plants in the Philippines, by Type 3 2 Costs of Using PV and Using Conventional Sources 17 3 Estimated costs for lighting using conventional system, 2008 18 4 Prices of Different PV sizes without subsidy, January 2008 21 5 Percentage distribution of respondents by socio-demographic
characteristics by service provider, Laguna and
Batangas, 2008 26
6 Average wattage of bulbs, number of bulbs and number of hours the bulb is used per household by service provider,
Laguna and Batangas. 2008 27 7 Average energy consumption (KwH) and cost per month of
households for lighting by service provider, Laguna and
Batangas, December 2008. 28
8 Estimated costs of electricity over 25 years by service
provider, Laguna and Batangas, 2008 29 9 Percentage distribution of respondents by awareness in
sources of electric energy by service provider, Laguna and
Batangas, 2008. 30 10 Percentage distribution of respondents who are aware of
the photovoltaic system by perception and by service provider,
Laguna and Batangas, 2008 32
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11 Percentage distribution of respondents by willingness to use of photovoltaic (PV) system by service provider, Laguna and
Batangas, 2008. 32
12 Percentage distribution of respondents by reasons for willingness to use solar PV by service provider, Laguna
and Batangas, 2008 33
13 Percentage distribution of respondents by reasons on why not to use PV system by service provider, Laguna and
Batangas, 2008 34
14 Percentage distribution of respondents by factors that would make respondents use PV by service provider, Laguna and
Batangas, 2008 35
15 Logit model estimates of factors affecting decisions
on PV system adoption, MERALCO users, 2008 36 16 Logit model estimates of factors affecting decisions
on PV system adoption, BATELEC users, 2008. 38 17 Logit model estimates of factors affecting decisions
on PV system adoption, BATELEC and MERALCO
users, 2008 39
