Solar Domestic Water Heating Technology: Market Barriers and Adoption Strategies
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This paper analyzes the United States' domestic water heating industry and solar domestic water heating technology adoption from the standpoint of Porter's five forces model and the technology adoption life cycle model. Using Porter's five forces model, the key barriers to entry for solar water heating technology are high buyer price sensitivity and unequal access to distribution channels. In the context of the technology adoption life cycle, current solar water heating technology is disruptive but it has not yet crossed the chasm. Further, a dominant design has not emerged. Two strategies are proposed to address these barriers and facilitate crossing the chasm. One strategy focuses on establishing a beach head with the home owner using a focused sales approach involving six factors and convincing them that the value of a solar water heater more than outweighs the initial cost. The other strategy seeks to shift the up front cost away from the home owner using an approach similar to that being taken by the solar electric industry with Solar Power Purchase Agreements.
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