Determinants of consumer willingness to invest in green energy solutions: Perspectives from South Africa

Abstract

The energy sector holds critical importance for South Africa, particularly as a developing country grappling with persistent economic challenges and energy insecurity. These pressures have stimulated growing scientific and policy interest in renewable energy as a pathway to sustainable development. This study examines public perceptions and awareness of renewable energy technologies and estimates willingness to pay (WTP) for their increased integration into South Africa’s energy mix. By linking these objectives, the study provides insights into the social and economic factors that shape a just energy transition and informs targeted policies, investments, and engagement strategies to accelerate the adoption of renewable energy. A descriptive research design was employed, incorporating a systematic random sampling approach to ensure reliability and representativeness. Data were collected through structured questionnaire surveys conducted in both urban and rural households across Limpopo Province, South Africa. Findings reveal a generally positive public attitude toward the expansion of renewable energy, although knowledge levels remain moderate and are most pronounced with respect to solar energy systems. The mean household WTP for increased renewable energy penetration was estimated at ZAR 163.4 per annum. Binary logistic regression analysis identified eight statistically significant predictors of WTP: Education, Occupation, Income, Recognised Advantages (A1), Financial Incentive Schemes for RES (A3), Expansion Strategies for Renewable Energy (A4), Price Parity with Fossil Fuels (A7), and Interest-Free Financing Options (A8). These results highlight the importance of affordability, policy support, and tangible benefits in driving public acceptance. Overall, the findings highlight the potential for targeted policy and educational interventions to foster household participation and advance South Africa’s just energy transition.