The diffusion of microgeneration technologies - assessing the influence of perceived product characteristics on home owners' willingness to pay

► This study presents empirical insight into Irish home owners' willingness to pay (WTP) for microgeneration technologies and the relative influence of subjective consumer perceptions. ► The findings presented in this study clearly show that a major reason for the slow uptake is home owners' WTP, which is significantly below market prices. WTP for solar water heaters, which matches current sales figures in Ireland, is the only exception. ► In this context, public policy in the form of financial incentives such as grant aid or tax incentives can be very costly and might not provide a viable support mechanism for policy makers who aim to promote the diffusion of microgeneration. ► However, the results also suggest that home owners' WTP is not solely based on rational financial reasoning but is also influenced by people's subjective perception of the technologies' characteristics. ► The findings can be used by marketers and policy makers to design alternative and more market-based support mechanism (e.g., consumer finance or leasing and fee-for-service models), which might prove more feasible solutions to promote microgeneration.