Analyzing Solar Adoption Using Lemons Market Problem with Diffusion of Innovations Theory

Authors

  •   Kimaya Nahar Ph.D. Scholar (Corresponding Author), Symbiosis Institute of International Business, Symbiosis International (Deemed) University, Pune, Maharashtra ORCID logo https://orcid.org/0009-0008-0459-4746
  •   Madhura Ranade Assistant Professor, Symbiosis Institute of International Business, Symbiosis International (Deemed) University, Pune, Maharashtra ORCID logo https://orcid.org/0000-0003-2970-9948

DOI:

https://doi.org/10.17010/ijom/2026/v56/i4/175444

Keywords:

renewable energy marketing, lemon market, solar adoption, consumer behavior, diffusion of innovation, information asymmetry.
Publication Chronology: Paper Submission Date : September 20, 2025 ; Paper sent back for Revision : February 23, 2026 ; Paper Acceptance Date : March 25, 2026 ; Paper Published Online : April 15, 2026.

Abstract

Purpose : This research scrutinized the influence of the Lemons market problem arising from information asymmetry in the solar products market. On the other hand, certain innovation diffusion factors were also studied that encouraged the adoption of solar products.

Methodology : A purposive sampling technique was used to select customers or potential customers of solar products from rural regions of Pune district. A structured questionnaire was circulated, and 568 complete responses were collected. The collected data were analyzed using structural equation modeling with software such as SPSS and AMOS.

Findings : Lemons market problem had a significant negative influence on the adoption of solar products, while innovation diffusion factors had a positive and significant effect.

Practical Implications : Marketers, dealers, and sellers of solar products should address information asymmetry by transparently communicating the actual quality and benefits of their products. They should provide free trials and peer demonstrations to escalate solar adoption. Signaling techniques such as certifications, warranties, clear pricing, and reliable after-sales services could address the Lemons Market problem and boost solar adoption.

Value : Unlike previous studies on solar adoption, the current research pioneered the analysis of the combined effects of the diffusion of innovation factors and the market for Lemons theory in the context of solar acceptance. Thus, this study clarified vital barriers and drivers of solar adoption contributing to the solar energy and marketing literature.

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Published

2026-04-15

How to Cite

Nahar, K., & Ranade, M. (2026). Analyzing Solar Adoption Using Lemons Market Problem with Diffusion of Innovations Theory. Indian Journal of Marketing, 56(4), 30–46. https://doi.org/10.17010/ijom/2026/v56/i4/175444

Issue

Volume 56, Issue 4, April 2026

Section

Articles
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