Who uses solar water heaters? Evidence from the Palestinian Territories

In many developing countries, households' adoption of renewable energy systems constitutes an off-grid solution and an autonomous response to energy constraints. Within this context, it is important for policymakers to consider household-related characteristics when promoting the adoption of residential solar energy systems. In this paper, we focus on the water heating aspect of energy poverty and tackle the case of Palestinian households who are impacted by this issue. Specifically, using 2020 survey data from 3122 households and Probit regression analysis, we examine the determinants of domestic solar water heater (SWH) adoption. Our main findings on socioeconomic characteristics are that families with more females are more likely to adopt SWHs, whereas families with more children of all genders are less likely to do so. The installation of SWHs is also positively correlated with the households' main income and their heads' educational attainment and age. We also control for dwelling characteristics and find that households in urban areas and those living in a house, owning the dwelling, and having a bathroom are more likely to adopt SWHs. These findings help policymakers design and implement more tailored measures in regions characterized by both energy poverty and high potential for solar energy, such as the Palestinian Territories.