Consumer Behaviour Report: Solar Panel Purchase in Australia

This report, focusing on the 'Take the Power Back' topic, investigates consumer behavior related to solar panel adoption in Australia. It begins with an introduction highlighting the high electricity costs and the government's push for renewable energy through solar panels. The literature review explores the current state of solar panel usage, referencing the rapid growth in installations and the use of Porter's Generic Strategy (Cost leadership, Differentiation, Cost-focus, and Differentiation focus) to explain consumer choices. The report then discusses marketing strategies, including low-cost approaches and outsmarting competitors, emphasizing the importance of understanding the target market and promoting the benefits of solar energy. Finally, it recommends cost-effective and diversification strategies, along with the adaptation of storing electricity, and the need for promotional activities to educate consumers. The report concludes that using solar panels and battery storage is the best way to mitigate financial crises related to electricity bills in Australia.

Running head: CONSUMER BEHAVIOUR
CONSUMER BEHAVIOUR
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Introduction..................................................................................................................................2
2. Literature Review........................................................................................................................2
2.1 Overview of the literature......................................................................................................2
2.2 Theoretical framework and concept......................................................................................3
3. Marketing Strategies....................................................................................................................5
4. Recommendation and Conclusion...............................................................................................6
References........................................................................................................................................8
Appendices....................................................................................................................................10

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Topic: ‘Take the Power Back’ – Encouraging Australian household
1. Introduction
Electricity is one of the strongest energies that consumer uses frequently and pays a huge
bill for that. The electricity control board has faced some confrontation to restore the energy and
that is the key challenge for some of the energy constrains process. The topic ‘Take the Power
Back’ is one of the concepts that saving energy for the future resources and the innovative nature
is the key matter for the nation. The producing solar energy from the Solar panel is the key
process in Australia (Abc.net.au, 2018). The electricity bills are quite high in Australia and the
process is quite struggling for the government also. Thus, the interference of solar electricity is
being introduced in this manner and a financial haphazard condition is also resolved.
The target market of solar panel is rural and suburb people. They have faced lots of issue
with electricity. In some cases, where the situation is not permissible for the electric
connectivity, electric lines are not connected properly to enlighten the space and that is the
reason, these people use solar panel system as the source of their electricity.
The problem contains in urban, rural, and suburb areas, where the increase bill payment
is the issue and innovation control is the key process to mitigate that. The production of
controlling and using this environmental friendly system for the development of electricity is the
key issue in Australia. The savings of energy and use it for the development of other sectors is
the prime aspect of opportunities but as the system is apparently implies on the heat of sun and
some wiring and controlling are based on the panel, so sun absence or the damage of panel may
considered as the problem also.
2. Literature Review
2.1 Overview of the literature
In case of dollar power aspect in Australia, almost 7800 MW photovoltaic solar power
has been installed and the renewable energy target of Australia has reached as per the rapid
increase. In South Australia, mainly for the use of household and education programs, solar

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system has been used in the initial way. This is a record-breaking rooftop installation for
Australia and in the single year, this is a huge leap for the production and installation of solar
panels. With 111 MW of new panels the nation has gained almost 69% rises of solar panels
implemented in 2018 (Abc.net.au, 2018). There are 30 new industrial solar farms are scheduled
on that moment and there are 18 large projects are under the construction. The projects are large
scaled and that will provide enough scope for the development of energy capacity. The turbo
boost solar ranges are important in that case.
2.2 Theoretical framework and concept
In case of theoretical framework of the process, the Porter’s Generic Strategy is the best
way to explain the process and this strategy is the best way to define the situation. There are four
segmentations in the theory for the competitive advantage and in case of solar panel system
installation, the process is quite relevant that people use the effectiveness of the panel and use
this for their house. Cost leadership, Differentiation, Cost-focus, and Differentiation focus are the
segments and that enhances enough scope for that (Ewert etal., 2015)

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Figure 1: Porter’s Generic Strategy
(Source: Ewert et al., 2015)
The process of increasing profit and reducing cost is the main mater of this strategy and
that is the reason low-cost will encourage people to have this system at their house and make
more utilization of it. There is a reasonable profit will be there for the manufacturing and
retailing company, whereas the major reason it implies on the heat so transfer of heat and cost for
the set of planning and the installation charge needs to be reduced by that process. As
commented by Tam et al., (2017), the differentiation strategy highlights the development and
innovation and also process some high-quality products and services for the sustainable gain in
the market. Market research is important for that matter and several confronting shields will be
there for the risk mitigating process (Capp & Driscoll, 2016). The process of differentiation
makes the different decision in labour, material and facilities cases and that process of
differentiation helps them in analysing the product diversification. As opined by Ma et al.,
(2016), the focus strategy is concentrating on the niche market focus group. This is the focus
group that has linked to the people and their need. There is some padding issue that also
mentioned in that case for the calculative advances in the business. The resource market will be
high in that case and that will provide enough chances for the new and existing customers.
The reason, this theoretical aspect concept has been chosen, is segmentation of people
needs and increase electric price in case of normal electricity process. That is the reason people
are trying to make an alternative way-out so the energy can be reused (Burtt & Dargusch, 2015).
The use of low-cost strategy in this process signifies the solar panel installation and other
technical changes are a lot less than bill payment. The process is long lasting and people can rely
on that fact. 3.5 million Solar panels have already been installed in 2017 and that is the high
segment that loves that alternative way and imposes that (Abc.net.au, 2018).
The interconnection between the low-cost implementation and generate energy in this
process is the most important aspect of the process. The financial benefit that people will define
in that case signifies the low initial cost as well. In process of delivering normal electricity, the
organisation even charged a good amount of money and after a month huge electricity bill also
come (Simpson & Clifton, 2016). The constructed governments departments those people are

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taking care of electric energies are stated the issue that energy consumed by the people is more
than expected, so price development is the key step that has been taken by them. The use of solar
panel and harnessing solar energy and use it after the sun sets is the entire process of the flow.
The process supports CSR activities as the green, clean and renewable aspect of the process help
the entire system to move on and have better homely installation process in every household in
Australia. This is the crucial aspect to allow a new technology in the nation and gain some
additional benefits as well.
3. Marketing Strategies
Marketing strategy is one of the important steps that need to be channelized in the right
manner for the development and the expansion of solar panel. The official announcement has
come from the Australia government as they are hosting 1.5 million solar power system and
which is equivalent to the 18% of Australian households are owing a PV system
(Theguardian.com, 2018). Low cost marketing strategy is quite useful in that case and that
signified by the responses from the Australian civilians. The authority of the government
officials has planned lowest price system for the solar panel. They want that Australia will be the
country which will introduce the solar panel at the lowest rate in the world. Australia ranked 8th
in the world as per the installation in 2014 but the level of enhancement in 2017 and 2018 is
phenomenal for the nation (Abc.net.au, 2018).
The PV system contributes 2.5% of Australian electricity needs and Queensland hosts
most of the solar power system in the country. There are 28% of the households in there are
controlled by the state authority (Theguardian.com, 2018). Hence, the strategy of promotion is
the key aspect of solar power distributions. Some of the states are highlighting the promotion of
this and state the reason and advantages the people will get if they choose the alternative way of
contemporary electricity uses.
State System (Approx.) % with PV
ACT 16,370 12%
NSW 325,400 13%
NT 5000 7%
QLD 464,002 28%

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SA 192,380 30%
TAS 26,200 13%
Table 1: Number of installation and percentage of different states
(Source: Abc.net.au, 2018)
The last strategy that has been taken in this process is outsmarting the competitors. The
process can be only doable if the organisations who manufacture the solar panel like ‘Tindo
Solar’, ‘Australian Solar Manufacturing Pty Ltd’, or ‘Solar Energy Australia’ will know their
industry and target market. Then they have to analyse the possible thinking and innovation that
need to make so the people get more reliable on them and use solar panel rather than normal
electricity (Theguardian.com, 2018). The rising price of electric is the major way and these
organisations have to showcase that these panels are not extract any money from customers, after
the installation process and then it’s completely free. Solar saving equations and get interact with
aboriginals like Murrawarri, Ngunnawal, and Tuggeranong, Tiwi, Warlpiri, Kalkadoon, Guugu
Yimithirr, and people like Dieri, Karuna, Adnyamathanha are the key prospect to stretch the
business market and help them to grow as well and bring back them to the actual socialised
country (Yu & Halog, 2015). This marketing strategy is quite free in that case as the focus
market is the people who have not have any money to spare off and that is the reason these
marketing strategies will help in case of long-term business help.
In case of addressing a lot of people the aspect of the low-cost business will be helpful as
the catering section is huge in that case but in case of fewer amounts of people will be a drastic
move for the organisation. The consumer can get this thing at the low cost and that will be
beneficial for them but on the other hand, after the installation, so much money in the month
basis cannot be claimed by the organisation (Chandel, Naik & Chandel, 2015). The levelling and
connection problem and setting issues are the crucial things that affected the business.
4. Recommendation and Conclusion
The cost-effective and diversification strategy is the best strategy that can be used in this
project. The way of promotion will be low-cost electric that ensures environmental sustainability

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as well. The adaptation of storing electricity is the new form of the process the helps customers
to consume what they want and they need not pay for that. The technological improvement and
energy storage is the big issue and that awareness needs to be conveyed by the executives to
civilians. Promotional seminars and events need to be formulated and that will be the best part of
providing them knowledge about the situation they in and they will be.
Therefore it can be concluded that financial problem regarding electricity is the main
issue and electricity bills are creating a headache for civilians in Australia, so using the solar
panel and battery to store the electric is the best way to mitigate the financial crisis situation.

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References
Abc.net.au (2018) Solar power: What happens when we start producing more electricity than
we can consume? Retrieved from: http://www.abc.net.au/news/2018-03-07/solar-power-
what-happens-when-theres-too-much/9522192 [Accessed on 1st June, 2018]
Burtt, D., & Dargusch, P. (2015). The cost-effectiveness of household photovoltaic systems in
reducing greenhouse gas emissions in Australia: linking subsidies with emission
reductions. Applied energy, 148, 439-448.
Capp, F. W., & Driscoll, W. J. (2016). U.S. Patent No. 9,438,035. Washington, DC: U.S. Patent
and Trademark Office.
Chandel, S. S., Naik, M. N., & Chandel, R. (2015). Review of solar photovoltaic water pumping
system technology for irrigation and community drinking water supplies. Renewable and
Sustainable Energy Reviews, 49, 1084-1099.
Ewert, F., Rötter, R. P., Bindi, M., Webber, H., Trnka, M., Kersebaum, K. C., ... & Semenov, M.
A. (2015). Crop modelling for integrated assessment of risk to food production from
climate change. Environmental Modelling & Software, 72, 287-303.
Ma, W. W., Rasul, M. G., Liu, G., Li, M., & Tan, X. H. (2016). Climate change impacts on
techno-economic performance of roof PV solar system in Australia. Renewable
Energy, 88, 430-438.

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Simpson, G., & Clifton, J. (2016). Subsidies for residential solar photovoltaic energy systems in
Western Australia: Distributional, procedural and outcome justice. Renewable and
Sustainable Energy Reviews, 65, 262-273.
Tam, V. W., Le, K. N., Zeng, S. X., Wang, X., & Illankoon, I. C. S. (2017). Regenerative
practice of using photovoltaic solar systems for residential dwellings: An empirical study
in Australia. Renewable and Sustainable Energy Reviews, 75, 1-10.
Theguardian.com (2018) Australia's solar power boom could almost double capacity in a year,
analysts say retrieved from:
https://www.theguardian.com/australia-news/2018/feb/11/australias-solar-power-boom-
could-almost-double-capacity-in-a-year-analysts-say [Accessed on 1st June, 2018]
Yu, M., & Halog, A. (2015). Solar photovoltaic development in Australia—a life cycle
sustainability assessment study. Sustainability, 7(2), 1213-1247.

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Appendices
Appendix 1
Figure 2: Rate of installation
(Source: sunwiz.com.au, 2012)
Appendix 2

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Figure 3: Progress towards renewable energy target
(Source: cleanenergyregulator.gov.au, 2018)