Chapter I

CHAPTER - I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

Solar energy is the genesis for all forms of energy. This energy can be made use in
two ways, one is the Thermal route, that is, using heat for drying, heating, cooking,
generation of electricity and the other is through photovoltaic route which converts solar
energy into electricity that can be used for a myriad purposes such as lighting, pumping
and generation of electricity. With its pollution free nature virtually inexhaustible supply
and global distribution, solar energy is very attractive energy resources.

India being tropical country receives adequate solar radiation for 300 days
amounting to 3000 hours of sunshine equivalent to over 5,000 trillion Kwh. Almost all the
region receives 4-7 Kwh of solar radiation per square meters with about 2300-3200
sunshine hours per day. Beyond the problem of demand and supply of electricity to the
entire population, electricity losses in India during transmission and distribution have been
extremely high over the years and this have been reached a worst proportion of about 24.7%
during 2010-11. India is in a pressing need to find a solution to these problems to achieve
sustainable growth and development.

For a developing country like India, where electricity for every home was once
considered a dream and it is now close to reality. The government initiative if “POWER
TO ALL” is changing the socio-economic structure of the country. India is on its way to
improve its industrial and economic health through structural reforms. The country has
decided to phase out fossil based energy generation and adopt green energy. This growing
need of energy perfectly aligns with the country’s green energy transition initiatives to
satisfy future energy demands while reducing carbon footprints and burden on the
country’s foreign currency reserves.

Solar and wind once considered costly source of power, but are now much cheaper
than the conventional form of energy. India has already achieved 23GW of solar
installations. The transition of the energy landscape in India is inevitable with the share of
renewable energy growing up rapidly. India set ambitions targets for itself to achieve

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100GW of solar power by 2022 and is set to prove that with honest efforts and true intent
no target is difficult to achieve.

It believed that gadgets will mostly comprise those powered by the solar energy.
Depleting non-renewable energy resources, rising electricity bill and increasing awareness
about green energy sources, have prompted people to adopt technologies to harness the
abundantly available solar energy. It is clean, reliable and safe and if used skilfully, can
reduce our dependency on conventional forms of energy and save money as well as the
environment. Today, there is a wide range of solar devices available in the market including
solar mobile phones, solar chargers, solar shaver, solar candles, solar lamps, solar
headphones, solar exhaust fans, solar heating devices, solar energy saver etc.,

In today’s world India is in the fourth largest economy. The economy has grown
steadily over the last 30 years, averaging 7% annually since 2000. Electricity demand is
growing at 8% annually, similar to the growth of the economy. According to some articles,
there is a 92 GW electricity demand over the next 10 years. India has a power generation
capacity of about 170 MW of which only about 8% to 10% is generated through renewable
sources. The country has an estimated renewable energy potential of around 85 GW from
commercial exploitable sources wind: 45 GW, small hydro: 15 GW. India has the potential
to generate 35 solar thermal energy.

The Government of India and its state governments have created a major initiative
called the “National Solar Mission” one of the main features of the Mission is to make
India a global leader in solar energy and the mission envisages an installed solar generation
capacity of 20 GW by 2022. This could in fact be much larger due to private initiatives that
will no longer need state aid. India is endowed with rich solar energy resources. Because
of its location between the Tropic of Cancer and the Equator, India has an average annual
temperature that ranges from 25 0C to 27.5 0C. Being a tropical country, India has huge
potential for solar power generation. The average intensity of solar radiation received in
India is 200 MV/km2 with 250.

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1.2 NEED FOR THE STUDY

India is blessed with a diversity of renewable energy sources, the important one being
Biomass, Biogas, Solar Energy, Wind, Small hydro power, Geothermal, Municipal and
industrial wastes can also be used for renewable sources of energy, but are basically different
forms of biomass. India lies in bright locales of the world. Most parts of India receive 4-7 Kwh
of Solar powered radiation per square meter per day with 250-300 bright days in a year.

India has bounteous solar powered resources, as it gets about 3000 hours of sunshine
every year, identical to over 5000 trillion kwh India can viably use the solar energy or solar
power. Today the contribution of solar powered radiation with an installed capacity of
9.84 MW is a fraction (<0.1 percent) of the total renewable sources of energy installed (as on
31st October 2008 by MNRE). For extending energy supply and meeting decentralized energy
needs the Government implements different strategies through India’s Ministry of New
Renewable Energy (MNRE), Energy Development Agencies in the different states, and Indian
Renewable Energy Development Agency (IREDA). These nodal agencies take different
measures to promote use of Non-Conventional Energy Resources by individual customers,
industries, public enterprises and state Government Agencies.

The present situation of Renewable energy resources of Bengaluru is not prompting

the needs of some extra efforts to boost the use of renewable energy sources. The current
study covers only the solar energy applications of Non-Conventional Energy Resources.
It is obvious that utilization of solar energy is very low compared to geographical spread
and population of India. Apart from high initial costs there are numerous different reasons
to it. Penetration level for the utilization of Non-Conventional Energy Resources is low in
Bengaluru. Preliminary study also reveals that the awareness for the utilisation of solar
energy products also very low. Government also provides subsidy and tax incentives for
promoting solar energy products in India. So, this current study attempt to evaluate the
level of awareness for the solar energy based products in Bengaluru city. Find out the
buying behaviour and perception of solar energy products with reference to different
entities in Bengaluru city. This study will be useful to understand the government to frame
different policies for promoting the solar energy products. It is useful to understand the
manufacturer of solar energy products for understanding the need of the consumers.

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1.3 STATEMENT OF THE PROBLEM

Energy is required for sustaining all form of life on the earth. Nowadays, electricity
has become a basic need of a man for his survival in today’s world. The primitive man was
largely dependent for kerosene lamps, candles, fire places and gas lamps. The discovery of
electricity marked a turning point in the process of civilization and man has learnt to use
electricity for all their life styles. During the course of time the energy demand is shaped
by multiple factors like climatic conditions, area of living, life style of people, income
levels and other demographic factors. Being, India is a tropical country the energy
consumption is an indispensable activity in the daily lives around the world. Due to
increase in demand for energy consumption for daily usage the man can utilize solar power
to satisfy their daily requirements.

There is a ample scope for solar energy product being a renewable energy available
in abundance as a natural source sun emits photovoltaic energy in the sun rays. With the
invention of photovoltaic and thermal energy used to grasp solar energy and converts in to
electrical energy for usage. Many manufacturer have come in to the markets which are now
fast moving in the commercial sales of solar energy product. In this aspect, it become
necessary to find what impact this solar energy product has made the consumer and the
study has undertaken how the consumer will behave while buying the solar energy product.

By considering the consumers, this study is undertaken to find out answer for the
following questions?

1. What is the level of awareness towards solar energy products?

2. What are the problems faced by the consumers while using solar energy product?

3. What are the logical reasons for choosing solar energy products over electrical products?

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1.4 OBJECTIVES OF THE STUDY

The main objectives focused under this area of study are as follows:

 To know the demographic factors of the consumers using solar energy products.

 To study the buying behaviour and perception of consumers using solar energy
products.

 To gain the knowledge about the level of awareness towards solar energy products.

 To know the logical reasons for choosing solar energy products over electrical
products, even though electrical device are comparatively cheaper.

 To analyse the overall satisfaction level of consumers towards solar energy products.

 To identify the problems faced by the consumers using solar energy products.

 To offer suggestions for improving the purchase of solar energy products.

1.5 HYPOTHESES

 There is no significant relationship between demographic factors (Age, Gender,

Marital status, Educational qualifications, Occupation status of the consumers,
Monthly income, Family monthly income, Family type and Family size) of the
consumers and level of agreement on the perception of solar energy products.

 There is no significant differences in the mean consensus between demographic

factors (Age, Gender, Marital status, Educational qualifications, Occupation of the
consumers, Monthly income, Family monthly income, Family type and Family
size) of consumers.

 There is no significant relationship between demographic factors (Age, Gender,

Marital status, Educational qualifications, Occupation status of the consumers,
Monthly income, Family monthly income, Family type and Family size) of the
consumers and level of satisfaction on solar energy products.

 There is no significant differences in the mean satisfaction score between

demographic factors (Age, Gender, Marital status, Educational qualifications,
Occupation status of the consumers, Monthly income, Family monthly income,
Family type and Family size) of consumers.

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1.6 RESEARCH METHODOLOGY

PILOT STUDY AND PRE-TESTING

A Researcher conducted a pilot study with a sample of 50 respondents. In the pilot

study, the questionnaire method was used and then finalised for the further study.
This study helped in imparting indispensable changes in the questionnaire and also gave
an indication as to the kind of reaction would be forthcoming with a few insertions and
deletions and a final questionnaire was prepared, as given in the Appendix.

SAMPLING DESIGN

Snowball sampling method is adopted for data collection. Sample of 750

respondents were covered by the study.

METHODOLOGY

In this study, both primary and secondary data are utilized. But, primary data is
largely utilized. In order to collect primary data questionnaire method is utilized. A well
framed questionnaire is utilized for collecting data and to gather the indispensable
information from the respondents. The questionnaire method is utilized to collect the facts
regarding consumer’s profile, satisfaction level of the consumers, buying behaviour and
perception of the consumers, level of awareness of the consumers and problems faced by
the consumers while buying the solar energy products. Secondary data are utilized from
various journals, magazines, periodicals, reports, daily newspapers and other sources.

For the present study, the universe consists of the consumers who buy their
necessaries in solar energy products in Bengaluru city.

TOOLS FOR ANALYSIS

The various extent of demographic factors, buying behaviour, perception, and

awareness of the consumers towards solar energy products between kinds of consumers
based on their age, gender, marital status, educational qualification, occupation of the
consumers, monthly income, family monthly income, family type, family size, buying decision
maker, type of products purchased, mode of buying, place of buying and amount spent for
buying the product were studied by means of Descriptive Statistics. The researcher collected
the data through field survey were well sorted out through simple tables and analysed with the

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help of appropriate statistical tools such as Simple Percentage Analysis, Chi-Square,
ANOVA, Factor Analysis, Multiple Regression, Henry Garrett Ranking Technique and
Structural Equation Modelling were used.
SIMPLE PERCENTAGE ANALYSIS
Simple Percentage Analysis refers to various kinds of ratio. Simple Percentage is
used to analyse the interpretation of primary data. Percentage analysis deals with the
respondents to describe the relationship. The percentage analysis diminish to a common
base and comparison can be made.
Percentage of respondents = No of respondents / Total respondents *100
CHI-SQUARE TEST
Chi-Square test is used to test the level of significance between the demographic
factors and various level of satisfaction.
Formula
Chi-Square Test

Σ (𝑂 − 𝐸)2
𝜒2 =
𝐸
Where
O = Observed Frequency
E = Expected Frequency
Degrees of Freedom
While comparing the calculated value of chi-square with the table value we have to
determine the degrees of freedom. The degrees of freedom mean the number of classes to
which values can be assigned.
V = (C-1) (R-1)
V = Degree of freedom
C = Number of columns
R = Number of rows

The collected data are statistically analysed by using chi-square test to find out the
relationship between the attributes.

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ANOVA

The Analysis of variance is method of technique to which a reaction is exposed to

different wellsprings of variety. The mean difference among the buying behaviour
classified based on their level of agreeability, level of awareness and level of perception
and attitude has been worked out by applying ANOVA.

FACTOR ANALYSIS

The general reason of factor analysis is to find a strategy for condensing the data
contained in a number of unique variables into a smaller set of new composite dimensions
(Factors) with minimum loss of data. The present study is suggestive in nature as it aims
to elaborate the buying behaviour of solar energy products by the consumers.

MULTIPLE REGRESSION

The multiple regression is a statistical tools used to analyse the relationship between
two or more variables. When there are at least two autonomous factors, the examination
portrays such relationship is Multiple regression. This regression is analysed where there
is one dependent variable that is presumed to be in relation with two or more independent
variables. In regression, a linear composite of variables is formed, in such a way that it has
maximum correlation with an active criterion variable for estimating the techniques.
The main reason of using this technique is to anticipate the dependent variable, based on
its co-variance with all the independent variables. It is very useful to anticipate the level of
dependent multiple regression analysis models, if the levels of independent variables are
given for analysing. The linear multiple regression problem is to measure and estimate the
coefficient of such that the expression,1 and 2, …..,j, 0 such that the expression,

Y = 0+1X1+2X2+----------+jXj

provides a good estimate of an individual Y score based on the X scores,

Where,

Y = Dependent variable

X1, X2, X3, … Xj = Independent variables

and 0, 1, 2, ………. j are the parameters to be estimated.

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STRUCTURAL EQUATION MODELLING

Structural Equation Modelling is also called as SEM. The confirmatory factor

analysis, composite analysis, path analysis, partial least squares, path modelling and
regression represent the special cases of SEM. Structural equation modelling to be consider
as confirmatory, rather than exploratory techniques. The model is measure and estimate
the correlations matrix between the constructs or factors that serves as input to measure the
structural coefficients between latent variables.

HENRY GARRETT RANKING TECHNIQUE

This technique is used to rank the respondents reasons for purchasing consumer
durables goods and problems faced while using durable goods in the study area. In this
method, the respondents are asked to rank the given reasons and problems according to the
magnitude of the factor. The order of merit given by the respondents is converted into ranks
by using the following formula
100 (𝑅𝑖𝑗 −0.5)
Percentage Position =
𝑁𝑗

where

Rij = Rank given for ith factor by jth individual.

Nj = Number of factors ranked by jth individual.

The percentage position of each rank thus obtained is converted into scores by
referring to the table given by Henry Garrett. Then for each factor the scores of individual
respondents are added together and divided by the total number of respondents for whom
the scores are added. These mean scores for all the factors are arranged in the descending
order, ranks are given and most important problems are identified.

1.7 SCOPE OF THE STUDY

The present study is confined to Bengaluru city the famous “Silicon Valley of
India” in the state of Karnataka capital city is a well-known IT hub some of the world’s
major IT corporations operate out of the city. The centre of India’s high-tech industry, the
city is also known for its parks and nightlife. The study has been under-taken in this
megacity because of the dynamic growth and to initiate all necessary actions for energy

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conservation in the state. The drastic growth provides the solid base for the solar energy
products and to initiate energy efficiency measures in all sectors for sustainable growth. Those
who go through the past history of Bengaluru and comparing the same with the status of
Bengaluru at present are stunned to know about the dynamism, especially the consumers who
has enabled the solar energy products to grow at very fast pace. The renewable energy
development harness green and clean renewable energy sources in the state for environment
benefits and energy security.

The topic entitled “Consumer’s buying behaviour towards solar energy products”
has ample scope at the national and state level. It is obvious from the survey carried out by
various nodal agencies like IREDA, MNRE, KREDL that India has a vast potential of using
solar energy but it is not being used to that extent. Bengaluru has a great collection of solar
energy products. The solar energy products plays a vital role in serving the day-to-day lives
of people here. Though, the growth of solar energy products is considerable, the renewable
energy development harness green and clean renewable energy sources in the state for
environment benefits and energy security. The population of Bengaluru has greater
spending power.

The present study is determined to measure the buying behaviour of consumers in

buying the solar energy products by implementing the common buying behaviour scale.
Buyer behaviour is a central component of the solar energy products in environment
context. In most of the marketing decisions, the problems can be ultimately traced to
predict the responses of consumers as to what, when, why and where they buy their
essentials. So in the current study, to observe what the solar energy product purchased are,
what they are being purchased and why they are being done so all the measures are taken
into account. This study also proposes to examine the satisfaction level of consumers by
the goods and services offered by the solar energy products. In the globalized economic
scenario, consumers are provided with the good number of choices to select and buy the
variety of solar energy products. In such a competitive atmosphere, it is necessary to
provide excellent product and to attract new customers, retain the old customers, to win
their loyalty and to create awareness of solar energy products. An attempt is made in this
study to have valuable insights on various solar energy products for good strength of
customers. The study also examines the various problems faced by the consumers while

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making purchase in the solar energy products. Human minds have a bias to change every
now and then based on the emotional and other external influences. So, an attempt is made
in this research to study the impulsive buying behaviour of the consumers in the solar
energy products. This is an age of internet survey in all the arenas thus, a special effort is
made in this research to study how consumers are practised to buy the solar energy products
with subsidy given by the government. Among the various marketing strategies that win
the hearts of consumers and make them delightful, the consumer behaviour is much more
important than any technical or product quality. Hence, the findings through this study will
help everyone to take their decision to buy solar energy product for daily needs and wants.
This will help everyone in contributing towards energy conservation and energy efficiency
measures in all sectors.

1.8 LIMITATIONS OF THE STUDY

In spite of every earnest exertion of the researcher to make the investigation more
accurate, complete and logical, an analysis of this kind of the study will undoubtedly have
certain limitations. Some of the limitations are as follows

 The study is focused on consumers’ buying behaviour towards solar energy products in
Bengaluru city. Thus, the results of the study cannot be generalized to other region.

 The investigation endures the confinements on time factors which limit the sample size.

 The study did not focus on different types of renewable energy sources like
Biomass, Biogas, Wind, Small hydro power, Geothermal, Municipal and industrial
wastes though they are particularly concentrated only on solar energy products.
This is a limitation to understand the overall consumer buying behaviour towards
solar energy products.

 The responses from the customers have been collected by the questionnaire method.
The data so accumulated are liable to what might be known as the error of response
in some degree or other. Most prominent endeavour have been taken to minimize
the level of errors.

 There is a element of risk on the accuracy associated with the suggestions of the study
due to the dynamic nature of the consumers buying behaviour from time to time.

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1.9 CHAPTER SCHEME

By keeping in perspective of the objectives laid above, the present study is

exhibited in six chapters along with suitable tables, graphs and annexure to help the
investigation and findings of the study. Questionnaire used to gather the essential
information has been affixed towards the end of this research proposal. The details of the
chapterisation scheme are as follows:

Chapter I Introduction deals with the concept of solar energy products, Need for the study,
Statement of the Problem, Objectives of the Study, Hypotheses, Research Methodology,
Scope of the study, Limitations of the Study and Chapter Scheme.

Chapter II Sketches the review of related literature relevant to the current Study.

Chapter III An overview and anatomy of solar energy product.

Chapter IV Analysis and interpretation of the consumers buying behaviour towards solar
energy product.

Chapter V Summary of Findings, Suggestions and conclusion – Scope for further study –
summarizes all the results obtained through statistical analysis to arrive at conclusions and
to offer suggestions.

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