Although business models presumably have a prominent role in socio-technical change remarkably little research has been conducted in this domain, more particularly in the context of developing economies. In this paper, we tap into this knowledge gap and study business model components and the challenges they face. We argue that the market value of renewable energy technologies will increase when new business models are implemented to overcome financial and institutional challenges. We complement concepts of the business model literature with the insights from the sustainable transitions literature. This paper addresses two research questions: What are the challenges of business and financial models in the transition towards decentralized solar energy driven systems? And what are the promising opportunities for new business models in a developing country context? To answer these research questions, we use a case study research design focusing on niche market development of solar thermal and solar photovoltaic (PV) technology in Lebanon. Data collection involved analysis of relevant text documents and expert interviews with 30 informants across different groups of stakeholders. Data analysis involved qualitative interpretation of collected data against concepts from the business model and Strategic Niche Management literatures. The results show that business model challenges initially were highly dependent on donor aid, which contributed to the launch and network creation of niche markets. Later, a shift to micro-finance and business startup models was observed, which showed promising development. Knowledge transfer and community empowerment were found to play an important role in developing new business models that involve consumers more closely. As this development is expected to take place more often, we expect that new opportunity pathways will develop in developing economies like Lebanon.

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Climate change and environmental problems are of major concern to governments, organisations, and consumers. This stresses the need for a transition towards clean renewable energy systems. To enable the diffusion of cleaner energy technology it is not enough to just have supportive policies in place. The challenge is to ensure that consumers adopt them. This article integrates insights from different research traditions into a research model to analyse consumers’ adoption decision-making behaviour. The innovation-diffusion model by Rogers was used and hypotheses from environmental psychological models were later added. A survey was conducted among householders to assess the adoption of solar heating systems in the Metn neighbourhood in Lebanon (N = 200). The results revealed that adopters and non-adopters differ significantly according to socio-demographic factors, such as income and household size.
The study confirmed the significance of typical variables of the diffusion of innovation model, such as relative advantage, observability, independent judgment-making, and novelty-seeking; even when testing integrative analytical models. Furthermore, the results indicate that, by integrating hypotheses from environmental psychology models to the diffusion of innovation model, a reasonable fit was achieved which is higher than the value of each model tested separately. The results can be of use to policy makers. The article ends with suggestions for future research.@en

In light of climate change and global commitments, a great amount of programs and policies have been implemented by governments targeting the diffusion of renewable energy technologies. Successful diffusion relies on the understanding, persuasion and acceptance by consumers and other stakeholders. This article investigates the views, roles and influence of stakeholders on the adoption of solar energy technology in Lebanon. The main research questions are: What are the stakeholders' views, roles and influence on the diffusion process of solar energy technologies? And are specific socio-cultural factors therein that influenced adoption? The influence of different stakeholders (end users, public representatives, banking sector, suppliers, consultants and NGOs) was assessed via qualitative data analysis, in particular semi-structured interviews. Our research perspective combines grounded and critical theoretical approaches with a case study research design allowing for a semi-inductive process to elaborate and complement new insights to the current body of literature on adoption of clean technology innovation, with a particular focus on the socio-cultural dimension. The results show that contextual factors, specifically related to the social, cultural, geographic and market dimensions, played a crucial role in shaping market development, especially in relation to the uptake of solar energy technology by different consumer groups. Based on the results of this study we argue that more scholarly attention should be awarded to the influence of the socio-cultural dimension and stakeholders' perspectives on adoption of renewable energy technology.

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There is abundant solar potential in the Middle East North Africa region. Yet access to sustainable energy is still a fundamental challenge in many countries of this region. In this paper we seek to understand the success and failure of the development and the diffusion of solar energy technologies by analysing using a Strategic Niche Management framework to compare the niche development of solar thermal energy and solar photovoltaics in Lebanon. This paper has two main questions: (1) How have the solar thermal niche and the solar photovoltaic niche developed in Lebanon, and how do they compare? (2) In which ways does the Strategic Niche Management framework help us to understand the development of solar energy niches in a developing country context? To answer these questions, a cross case analysis of solar thermal and solar photovoltaic systems was conducted. Due to the absence of research using Strategic Niche Management in Middle Eastern developing countries, this study uses an illustrative case from a country in this region to contribute new insights. Moreover, unlike the Strategic Niche Management research that only focuses on single case studies, this paper presents the results of a comparative study of two niches. The main Strategic Niche Management propositions were grouped and compared per item (i.e. on voicing and shaping expectations, social networks, and learning). The results show that the solar thermal niche affected the solar photovoltaic niche to a large extent. This was especially in relation to the learning and coordination processes. This has gradually contributed to establishing a clear vision. However, both niches lacked a niche manager who was able to coordinate, manage and maintain the dynamics of the niche processes. It also lacked horizontal collaboration between key actors involved (i.e. ministries). International donors were found to play a crucial role in initiating and shaping the market with certain constraints of prioritization in the region. The paper ends with conclusions and ideas for future research on solar energy niche development in the context of developing countries.

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