Examining Economic Barriers and Challenges to the Adoption of Renewable Energy in Emerging Markets (Case Study: Solar Panels)
Keywords:
renewable energy, solar panels, emerging markets, economic barriers, sustainable developmentAbstract
In recent years, renewable energy has emerged as an effective solution to the energy crisis, reducing dependence on fossil fuels and mitigating climate change. Among renewable energy technologies, solar panels have gained particular importance due to their versatility in installation scales, low operational costs, and environmental compatibility. However, in many developing countries, the process of adopting and expanding these technologies faces numerous economic challenges. This article, focusing on emerging markets and employing a descriptive-analytical method, examines the economic barriers influencing the adoption of solar panels. The primary identified barriers include high initial costs, lack of supportive and incentive-based systems, limited access to financial resources, and inadequate infrastructure. Moreover, by analyzing case studies in South Asian and African countries, the paper proposes solutions such as targeted policymaking, government financial support, establishment of specialized institutions, and public awareness campaigns to facilitate the adoption of these technologies. The findings of this study may serve as a foundation for decision-making by policymakers, investors, and energy sector stakeholders in pursuing sustainable development.
Downloads
References
Abdul, D., & Wenqi, J. (2024). Identifying and prioritization barriers to renewable energy diffusion in developing countries: A novel spherical fuzzy AHP approach and application. Energy Efficiency, 17(5), 40. https://doi.org/10.1007/s12053-024-10213-0
Bahmani, M., & Bahrammehr, N. (2016). Economic Evaluation of Solar Energy Use in Rural Areas of Southern Iran. Quarterly Journal of Economic Research, 51(2), 307-426. https://jte.ut.ac.ir/article_58452.html
Bakhtiyar, M., Mohammadi, T., & Taklif, A. (2016). The Expansion of Renewable Energies and Its Role in the Future Development of Iran's Power Industry. Economic Growth and Development Research, 7(25), 147-161. https://www.sid.ir/fa/journal/ViewPaper.aspx?id=310441
Campbell, S., Greenwood, M., Prior, S., Shearer, T., Walkem, K., Young, S., & Walker, K. (2020). Purposive sampling: complex or simple? Research case examples. J Res Nurs, 25(8), 652-661. https://doi.org/10.1177/1744987120927206
Chakraborty, S., Sadhu, P. K., & Goswami, U. (2016). Barriers in the advancement of solar energy in developing countries like India. Problemy Ekorozwoju, 11(2), 75-80. https://ouci.dntb.gov.ua/en/works/loxoPXW9/
Cormio, C., Dicorato, M., Minoia, A., & Trovato, M. (2003). A regional energy planning methodology including renewable energy sources and environmental constraints. Renewable and Sustainable Energy Reviews, 7(2), 99-130. https://doi.org/10.1016/S1364-0321(03)00004-2
Ibegbulam, M., Adeyemi, O., & Fogbonjaiye, O. (2023). Adoption of Solar PV in developing countries: challenges and opportunity. International Journal of Physical Sciences Research, 7(1), 36-57. https://eajournals.org/ijpsr/wp-content/uploads/sites/81/2023/09/Adoption-of-Solar.pdf
Irfan, M., Zhao, Z. Y., Ahmad, M., & Mukeshimana, M. C. (2019). Solar Energy Development in Pakistan: Barriers and Policy Recommendations. Sustainability, 11(4), 1206. https://doi.org/10.3390/su11041206
Kihlström, V., & Elbe, J. (2021). Constructing Markets for Solar Energy-A Review of Literature about Market Barriers and Government Responses. Sustainability, 13(6), 3273. https://doi.org/10.3390/su13063273
Liu, Z. (2018). What is the future of solar energy? Economic and policy barriers. Energy Sources, Part B: Economics, Planning, and Policy, 13(3), 169-172. https://doi.org/10.1080/15567249.2017.1416704
Luthra, S., Kumar, S., Garg, D., & Haleem, A. (2015). Barriers to renewable/sustainable energy technologies adoption: Indian perspective. Renewable and Sustainable Energy Reviews, 41, 762-776. https://doi.org/10.1016/j.rser.2014.08.077
Miller, D. (2012). Selling solar: the diffusion of renewable energy in emerging markets. Routledge. https://www.taylorfrancis.com/books/mono/10.4324/9781849772518/selling-solar-damian-miller
Moghani, A., Heydari, B., & Maleki, A. (2024). Natural Gas and Solar Energy: Challenges and Opportunities for Iran from the Perspective of Energy Security. https://sharif.ir/~maleki/Natural%20Gas%20and%20Solar%20Energy%20Iran's%20Challenges%20and%20Opportunities%20from%20the%20Perspective%20of%20Energy%20Security.pdf
Mohtasham, J. (2015). Renewable energies. Energy Procedia, 74, 1289-1297. https://doi.org/10.1016/j.egypro.2015.07.774
Naeem, M., Ozuem, W., Howell, K., & Ranfagni, S. (2023). A Step-by-Step Process of Thematic Analysis to Develop a Conceptual Model in Qualitative Research. International Journal of Qualitative Methods, 22, 16094069231205789. https://doi.org/10.1177/16094069231205789
Ohunakin, O. S., Adaramola, M. S., Oyewola, O. M., & Fagbenle, R. O. (2014). Solar energy applications and development in Nigeria: Drivers and barriers. Renewable and Sustainable Energy Reviews, 32, 294-301. https://doi.org/10.1016/j.rser.2014.01.014
Pandey, V. (2020). Energy infrastructure for sustainable development. Affordable and clean energy, 1-13. https://doi.org/10.1007/978-3-319-71057-0_77-1
Pfeiffer, B., & Mulder, P. (2013). Explaining the diffusion of renewable energy technology in developing countries. Energy Economics, 40, 285-296. https://doi.org/10.1016/j.eneco.2013.07.005
Rehman, A., Batool, Z., Ain, Q. U., & Ma, H. (2025). The renewable energy challenge in developing economies: An investigation of environmental taxation, financial development, and political stability. Natural Resources Forum, 49(1), 699-724. https://doi.org/10.1111/1477-8947.12418
Sadat Robat Jazi, M. (2024). The Impact of Investment in Renewable Energy on Energy Imbalance in Iran.
Sampaio, P. G. V., & González, M. O. A. (2017). Photovoltaic solar energy: Conceptual framework. Renewable and Sustainable Energy Reviews, 74, 590-601. https://doi.org/10.1016/j.rser.2017.02.081
Sawin, J. L., Martinot, E., Barnes, D., McCrone, A., Roussell, J., Sims, R., & Musolino, E. (2013). Renewables 2011-Global Status Report. https://www.sciencedirect.com/science/article/abs/pii/S0960148112006787
Siecker, J., Kusakana, K., & Numbi, E. B. (2017). A review of solar photovoltaic systems cooling technologies. Renewable and Sustainable Energy Reviews, 79, 192-203. https://doi.org/10.1016/j.rser.2017.05.053
Timans, R., Wouters, P., & Heilbron, J. (2019). Mixed methods research: what it is and what it could be. Theory and Society, 48(2), 193-216. https://doi.org/10.1007/s11186-019-09345-5
Timilsina, G. R., Kurdgelashvili, L., & Narbel, P. A. (2011). A review of solar energy: markets, economics and policies. World Bank Washington, DC, USA. https://doi.org/10.1596/1813-9450-5845
Timilsina, G. R., Kurdgelashvili, L., & Narbel, P. A. (2012). Solar energy: Markets, economics and policies. Renewable and Sustainable Energy Reviews, 16(1), 449-465. https://doi.org/10.1016/j.rser.2011.08.009
Wyllie, J. O., Essah, E. A., & Ofetotse, E. L. (2018). Barriers of solar energy uptake and the potential for mitigation solutions in Barbados. Renewable and Sustainable Energy Reviews, 91, 935-949. https://doi.org/10.1016/j.rser.2018.04.100
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2023 Zana Ghaderi (Corresponding author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
