1 s2.0 S0306261922010522 Main
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1 s2.0 S0306261922010522 Main
Applied Energy
journal homepage: www.elsevier.com/locate/apenergy
H I G H L I G H T S
A R T I C L E I N F O A B S T R A C T
Keywords: We seek to contribute to understanding household interest in battery storage, particularly the role of customer
Trust trust in their utility company. Using data from a survey of California households, we examine whether customers’
Battery storage trust in their utility company is associated with their interest in battery storage. We find that customer trust that
Household energy decisions
their utility company acts in their best interest is associated with lower levels of interest. Trust that the utility
Electric utility
company is competent has some effect. Perceptions that battery storage has financial and environmental benefits
and low nonmonetary costs are also associated with higher levels of interest.
* Corresponding author.
E-mail addresses: tfamilia@wsu.edu (T. Familia), chorne@wsu.edu (C. Horne).
https://doi.org/10.1016/j.apenergy.2022.119772
Received 10 March 2022; Received in revised form 16 July 2022; Accepted 27 July 2022
Available online 7 August 2022
0306-2619/© 2022 Elsevier Ltd. All rights reserved.
T. Familia and C. Horne Applied Energy 324 (2022) 119772
energy installations or vaccines often focuses on people’s understanding Although we emphasize the potential importance of trust, we also
of risks — that is, how they perceive the probable costs and benefits of expect perceptions of costs and benefits to be relevant. Battery storage
the technology. When people’s assessments differ from those of experts, has potential financial benefits. Customers who have battery storage are
the tendency is to blame this difference on poor assessment capabilities able to store the electricity they buy at low prices to use at times of day
and failures of reasoning and to try to remedy those failures through when prices are high. If they have solar panels, they can also store
education. But decisions may be based on more than just costs and electricity their panels produce to use at night or other times when the
benefits. Sociologists argue that because people are dependent on social sun is not shining, thereby reducing the overall amount of electricity
institutions, their decision-making also reflects their assessments of they buy from their utility company. If they do not currently have solar
those institutions [4]. In particular, people’s trust in relevant institutions panels, they might anticipate such future use. This means that house
affects the decisions they make [5]. holds may anticipate that battery storage may be able to help them save
Trust is an individual’s expectation that another actor will behave in money on their utility bills. Research on household energy decisions and
a way that benefits (or at least does not harm) the individual [6]. Thus, energy technologies generally shows that for the majority of adopters,
trust occurs in the context of relationships [7,8,9,10]. When an indi saving on electricity bills is an important consideration [28]. A related
vidual trusts another actor, they believe that the other intends to act in driver is protecting oneself against future higher costs (e.g., [29,30]).
the individual’s interest (the other cares about the individual’s interests Recent research also shows that some customers are motivated to in
and not just their own) and that the other is competent [11,12,13]. Thus, crease the value of their homes (which may be the case for both solar and
when a customer trusts their utility company, they believe that the nonsolar households) [31]. Accordingly, we expect that beliefs that
utility company cares about their interests and performs in a competent battery storage will be financially beneficial will increase interest in it.
way. Battery storage may also have environmental consequences [32]. As
Research shows that trust in institutions has declined substantially in noted above, households with battery storage and solar panels can store
the US (e.g., [14]) and other wealthy countries, (e.g., [15]). Low levels electricity to use when the sun is not shining. At times of high demand,
of trust are thought to have a number of negative consequences, solar energy that has been stored can be used instead of electricity from
including reducing effective collective action and lowering people’s coal or natural gas generation plants that must increase capacity to meet
confidence that they can address important problems (e.g., [16]). In the that demand [33]. This means that households can reduce their reliance
energy domain, research shows that distrust in policymakers is associ on electricity provided by the utility company (which is likely to be
ated with less acceptance of energy policy [17]. Trust is also important generated by fossil fuels). Conversely, there are negative environmental
for public acceptance of large-scale generation (e.g., [18]). When people impacts related to the battery material lifecycle [34]. Research on en
distrust installers of electricity generation facilities (such as windfarms ergy technologies often finds that perceived environmental conse
or energy transmission lines) they are less accepting of those facilities (e. quences affect decision-making (e.g., [35]). And there is some evidence
g., [19,20]). that opinions about the environmental impacts of battery storage vary
Customer trust in companies also has significant implications for [36]. Consistent with existing literature, we predict that:
their engagement with those companies [21]. Trust research shows that
people who trust a company are more likely to engage with it (for H2: Perceptions that battery storage is financially and environmen
example, by purchasing items from it), whereas those who do not trust a tally beneficial will increase interest.
company will take their business elsewhere (e.g., [22]). In general, when
people do not trust a company, they are likely to want to distance Battery storage also comes with potential costs. The most obvious of
themselves from it. these is financial. In general, people are less likely to adopt technologies
Despite the research on trust in the energy domain and on customer they view as expensive [37]. The cost of installing a battery storage
trust in companies broadly, there is little research on how customer trust system remains high and many see battery storage as not yet financially
in their utility company might affect customer energy decisions. The few viable [38]. Battery storage may also come with nonmonetary costs.
studies that exist show that people who trust their utility company may People may be wary of the difficulties of identifying the right kind of
be more willing to participate in a utility program [6] and to purchase system and getting it installed, and they may be concerned about
home energy management systems [23]. Data suggest, however, that maintenance (e.g., [39]). If people perceive high financial and nonfi
customers generally have low levels of trust in their electric utilities. For nancial costs, they may be less interested in battery storage.
example, polling data show that people have less trust in electric and gas
utilities than in other industries (e.g., restaurants, technology, auto, H3: Perceptions that battery storage is costly will decrease interest.
farming and agriculture) [24]. Similarly, focus group research shows
consumers placing little trust in power companies [25]. And people tend 3. Methods
to see utility policies and bill increases as self-serving [26].
As described above, trust research suggests that such low levels of To test these hypotheses, we rely on survey data collected from
trust are likely to lead people to want to disengage from a company. But California homeowners in the fall of 2019. The survey covered a range of
customers in the utility company context have little power to do this. questions related to solar energy and battery storage. The Washington
Typically, in the US, people can only purchase electricity from the utility State University Institutional Review Board determined that the study
in their geographic area. They cannot simply leave one utility company was exempt from review (Certificate of Exemption #17222-01); an
for another. They are captive. So, what might they do? One possibility is invitation letter provided recipients with information about the study,
that customers may seek other ways to increase their independence. enabling them to make an informed choice about whether or not to
Research suggests, for example, that people’s interest in rooftop solar participate.
panels is driven, in part, by their interest in becoming more independent
from their utility company by producing at least some of their own 3.1. Sampling and procedures
electricity (e.g., [27]). Investment in battery storage may constitute
another kind of step that customers can take to increase independence. California is a useful site for this research because it is on the leading
The implication is that people who distrust their utility company will be edge of integrating renewable energy sources into the grid and has a
more interested in battery storage. Accordingly, we predict that: sizable share of installed small-scale battery storage — 83 percent of
residential battery storage in the US is located in California [40]. Thus,
H1: Customer trust in their electric utility will be negatively associ although penetration of battery storage is still low, California residents
ated with interest in battery storage. may be somewhat more familiar with battery storage than people in
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T. Familia and C. Horne Applied Energy 324 (2022) 119772
Table 1 Community Survey [44]. For example, 74 percent of the sample has a
Descriptive statistics. bachelor’s degree or higher, whereas only 47 percent of the ACS sample
Variable Mean or Percent (sd) N has a degree. Mean income in the sample is $129,377, compared to
$108,219 in the ACS sample. And 69 percent of the sample is white,
Battery Storage Interest 3.16 1.46 3075
Intent 2.47 1.01 3144 compared to 57 percent in the general population. For details on soci
Competence: Costs 2.80 0.99 3112 odemographic characteristics see Appendix Table A2.
Competence: Fires 2.67 1.19 3108
Competence: Reliability 3.92 0.93 3130
Competence: Service 3.50 0.89 3110 3.2. Measures
Benefits 3.52 0.82 1933
Nonmonetary Costs 2.83 0.73 1839 The dependent variable is respondents’ interest in residential battery
Monetary Costs 2.72 1.14 2344
storage. We asked participants how interested they were in getting
Env Worry 4.17 0.78 2923
Education 2.14 1.29 2994 household battery storage (1 = not at all; 5 = very) (for exact wording of
Liberal 4.31 1.61 2857 all questions see Appendix Table A3).
Age 59.13 14.12 2903 Our independent variables are trust, benefits, and costs. To assess
White 69 % n/a 2921 trust, we asked questions to get at both the intent and competence
Female 42 % n/a 2996
components of the concept. To assess perceptions of utility company
Income (10 k) 12.94 5.81 2717
Solar Potential 4.34 0.85 3166 intent, we asked participants how much they trusted their utility com
Have Solar 71 % n/a 3211 pany to act in their best interest (1 = strongly distrust; 5 = strongly
trust). This measure is consistent with existing approaches to studying
trust in institutions (e.g., [45,46]). To assess perceptions of utility
other parts of the country and better able to answer questions about it.
company competence, we focused on four domains, asking how good a
The survey included two samples – households that had solar and
job the respondent’s utility company did at providing a reliable supply
those that did not – as we expect trust, costs, and benefits to be relevant
of electricity, providing good customer service, keeping costs reason
for both groups. In California, people who install solar are required to
able, and maintaining the grid to prevent wildfires (1 = very bad; 5 =
obtain a permit [41]. Many counties make this permit information
very good).
publicly available on county websites. We scraped county sites for
To measure respondents’ perceptions of financial and environment
permit addresses producing data for 82,439 filings (for a list of counties
benefits we asked a series of questions asking how much they agreed
with permit information see Appendix Table A1). To identify non
that battery storage could save their household money in the long run,
adopters, we purchased mailing lists for these counties. We then
improve the resale value of their home, reduce their household’s carbon
randomly selected respondents from these two samples. The total
emissions, and reduce their household’s environmental impact (1 =
number of eligible addresses was 26,023 – 12,353 households with solar
strongly disagree; 5 = strongly agree). These items were highly corre
and 13,670 households without solar.
lated (Cronbach’s alpha = 0.86).
The survey was conducted using the Tailored Design Method [42]
To assess participants’ perceptions of the monetary costs of battery
and used a mail push to web design. Households were initially mailed a
storage, we asked respondents how affordable battery storage was for
letter providing them with a link to the study and inviting them to
them. We recoded this so that affordable = 1 and unaffordable = 5. To
participate. The invitation included a one-dollar pre-incentive. To follow
assess perceptions of nonmonetary costs, we asked them to what extent
up, households were sent a post card reminder. Next, a paper copy of the
they agreed that battery storage was a hassle to install for their house
questionnaire was mailed to the household. Finally, a last reminder was
holds and difficult to maintain (1 = strongly disagree; 5 = strongly
mailed to non-responders. We obtained a total of 3402 surveys for a 13.1
agree). The two nonmonetary cost measures were correlated (Cron
percent response rate. This included 2,234 solar adopters (a 18.1 %
bach’s alpha = 0.68).
response rate) and 1168 nonadopters (8.5 % response rate). Although
Because research shows that environmental attitudes may be rele
our invitation letter stated that we were interested in people’s opinions
vant for household energy decisions, we also included questions asking
on whether they had solar or not, people who did not have solar may
participants about their environmental commitments (1 = strongly
have felt they had little to contribute. In addition, our response rate may
disagree; 5 = strongly agree). These items were also highly correlated
have been affected by the wildfires, outages, and evacuations in Cali
(Cronbach’s alpha = 0.93).
fornia in the fall of 2019.
We conducted a principal components factor analysis with varimax
Because of our focus on homeowners and our response rate, our
rotation that included the battery benefits, battery costs, and environ
sample is likely not representative of Californians generally. Instead,
mental items. This yielded three factors – benefits, nonmonetary costs,
participants have characteristics similar to those of solar adopters [43].
and environmental worries. The Eigenvalue for benefits was 2.374, for
Survey participants are more educated, wealthier, and whiter than the
nonmonetary costs 1.386, and for environmental worry was 5.637.
general population in California as determined by the American
Monetary costs did not load with any other factors. The model explained
Table 2
Correlations.
[1] [2] [3] [4] [5] [6] [7] [8] [9]
Note. N = 1283
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T. Familia and C. Horne Applied Energy 324 (2022) 119772
4. Results 5. Discussion
The analyses reported here exclude respondents who had don’t know The results are partially consistent with our predictions. Respondent
responses or missing data (for alternative and exploratory analyses see beliefs that their utility companies have positive intent toward cus
Appendix B Tables B1-B3). Table 1 reports mean responses to the in tomers are positively associated with interest in battery storage. How
dependent and dependent variable questions. Table 2 reports the cor ever, their perceptions that the utility company is competent, for the
relations between the theoretically relevant variables. None of the most part, are not associated with interest. Only beliefs that the utility
predictors in our models showed variance inflation factors higher than company does a bad job providing a reliable supply of electricity in
1.94, suggesting that multicollinearity is not a problem for the models crease interest. We interpret the trust results as suggesting that when
we fit [48,49]. people believe that their utility company does not care about customers,
To test our hypotheses, we conducted regression analyses with in they are more interested in distancing themselves from it. If they do not
terest in battery storage as the dependent variable (see Table 3). Hy believe that their electricity supply is reliable and the utility company
pothesis 1 predicts that people who trust their utility company will be does not do a good job restoring power, they may be more interested in
less interested in battery storage. To test this hypothesis we use our battery storage in order to maintain electricity for their household
intent and competence measures of trust. Consistent with our hypoth during power outages. Perceptions that battery storage is beneficial in
esis, we find a statistically significant negative association between crease interest; perceptions that getting a battery system is difficult and
Intent and interest in battery storage (see the Intent coefficient Models that maintenance is a hassle are associated with lower interest.
1–3). Focusing on model 3, the results suggest a one unit increase in The trust literature tends to highlight the positive collective out
Intent to be associated with a 0.11 decrease in interest. We find no effect comes of trust [16]. Here we show that the consequences of trust may be
of perceptions that the utility company was doing a good job with complicated – distrust increases interest in behaviors (installing battery
storage) that may have positive environmental consequences that
4
T. Familia and C. Horne Applied Energy 324 (2022) 119772
benefit many people. In order for batteries to benefit the collective, factors drive trust in different kinds of entities [56,57] and from whom
however, customers will need more trust in their utility company rather customers prefer to purchase energy technologies [58]. We acknowl
than less. Further, we find that, of the intent and competence dimensions edge that trust in utility companies, although significant, is only one
of trust, intent has the most consistent effects. Our results suggest a more dimension relevant to battery storage adoption. Because battery storage
complicated picture of the relation between trust and the collective good is just one element of the energy delivery system, consumer trust in other
than is sometimes assumed. relevant actors may also be relevant. For example, in the case of
As a practical matter, the fact that distrust in utility companies is microgrid implementation, trust in neighbors and in the quality of data
associated with greater interest in household battery storage is a po protection may also be important [59].
tential problem. As the electric grid incorporates more distributed Although the primary purpose of the study was to examine the role of
renewable energy (such as customer solar panels) and storage (house trust, we also asked questions about the benefits and costs of battery
hold solar panels), utility companies will no longer simply sell electricity storage. As rates of uptake increase, people’s understanding of these
to consumers. Instead, consumers will also be producers and storers of benefits and costs will likely grow and shift. Future studies may want to
electricity (e.g., [51]). The fact that renewable energy is less predictable assess customers’ knowledge regarding a broader range of battery
than fossil fuels (the sun does not always shine) further increases the characteristics.
challenges of managing the grid and ensuring that demand and supply Our survey was disseminated at one point of time. The data are cross-
are balanced. Household battery storage is a lever for addressing im sectional and do not provide causal evidence. Future research could use
balances. Residential batteries can be locally aggregated and dispatched experimental designs to assess factors that affect trust in industry actors
in real-time [52]. But in order for utility companies to coordinate supply and how trust affects interest in energy technologies. Longitudinal
and demand, they will need to work with customers, particularly those research may also give some purchase on causal associations. Our study
who produce electricity (through rooftop solar panels) and store it also measures interest in battery storage, not actual adoption.
(through battery storage). This will be difficult if households do not trust
their utility company. If households see solar panels and battery storage
as a strategy for becoming more independent from their utility company, 5.2. Conclusion
they are unlikely to want to coordinate more closely with it. And without
such coordination, household production and storage of electricity may We find that people who trust that their utility company has positive
create problems for the electricity delivery system (and other customers) intent towards customers are less interested in battery storage; those
rather than ameliorate them. who trust that their utility company does a good job providing a reliable
supply of electricity may also be less interested. Utility companies have
historically invested substantially in reliability, and more recently have
5.1. Limitations
emphasized customer service. Moving forward, demonstrating the
concern of industry actors for the well-being of customers may also be
Because of the response rate and our focus on homeowners, the re
important. Our research contributes to the understanding of why
sults cannot be generalized to Californians broadly. Further, it is possible
households might be interested in battery storage and highlights the
that California is unique because of its wildfire history and high elec
potential importance of customer trust in utility companies for the en
tricity prices. We expect that levels of customer trust in their utility
ergy transition.
company may vary across states depending on history — extreme
weather events, reports of utility malfeasance, high electricity costs, and
so forth. Consumer trust may also vary with the characteristics of the CRediT authorship contribution statement
household. Therefore, we do not expect levels of distrust to be the same
across locations. However, it is worth keeping in mind that over the last Thomas Familia: Conceptualization, Writing – original draft,
decade many regions of the United States have experienced extreme Methodology, Formal analysis. Christine Horne: Funding acquisition,
weather events causing extended power outages. From the Sandy Hur Project administration, Investigation, Writing – review & editing,
ricane that devastated the Northeast in 2012, the Irma and Dorian Supervision.
hurricanes that heavily impacted Florida and the Eastern coastline in
2017 and 2019, to the cold freeze in Texas in 2021, many states have
Declaration of Competing Interest
faced an increase in large-scale natural disasters and accompanying
outages. It is likely that customer distrust in electric utilities is an issue in
The authors declare that they have no known competing financial
these states [53–55]. Whatever the level of distrust in a state, we expect
interests or personal relationships that could have appeared to influence
the prediction regarding the associations between customer perceptions
the work reported in this paper.
that their utility company does not care about their interests and
customer interest in battery storage to apply broadly. Future research
Data availability
should assess the associations between trust and interest in different
contexts, while also considering the practicality of household produc
Data will be made available on request.
tion of renewable energy (such as solar). Future research should also
assess the effects of the intent and competence components of trust. It
may be that regions with different histories of utility competence react Acknowledgment
differently to these indicators. Future research could also examine
whether the ownership structure of utility companies matters. Does trust This material is based upon work supported by the U.S. Department
vary depending on whether the utility is investor owned (and profit of Energy, Office of International Affairs and Office of Electricity under
driven) or operated by a municipality or cooperative? Award Number DE-IA0000025.
We have focused here on utility companies because, at present, they
are the key point of intersection between consumers and the electricity Appendix A
delivery system. But moving forward, it is possible that other kinds of
organizations will matter. It may be important to know more about what
5
T. Familia and C. Horne Applied Energy 324 (2022) 119772
Table A1
California rooftop solar record availability.
County Record Availability County Record Availability
Table A2
Descriptive statistics.
Solar Non-adopters Solar Adopters
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T. Familia and C. Horne Applied Energy 324 (2022) 119772
Table A3
Survey items.
Variable Survey Question / Statement Response Categories Recodes
7
T. Familia and C. Horne Applied Energy 324 (2022) 119772
Table A3 (continued )
Variable Survey Question / Statement Response Categories Recodes
6 = don’t know
Battery Q37C Household battery 1 = strongly disagree
Hassle storage is hassle for my 2 = disagree
(Non- household to install 3 = neither disagree
monetary nor agree
Cost 4 = agree
Factor) 5 = strongly agree
6 = don’t know
Monetary Q37A My household can 1 = strongly disagree Original question
Costs afford battery storage 2 = disagree is reverse coded
3 = neither disagree for this analysis
nor agree
4 = agree
5 = strongly agree
6 = don’t know
Care Q49A I care about conserving 1 = strongly disagree
conserve nature 2 = disagree
(Env 3 = neither disagree
Worry nor agree
Factor) 4 = agree
5 = strongly agree
Care Q49C It is important to me to 1 = strongly disagree
LocEnv take care of the 2 = disagree
(Env environment in my 3 = neither disagree
Worry local community nor agree
Factor) 4 = agree
5 = strongly agree
Care Q49F It is important to me to 1 = strongly disagree
EnvGlobe protect the environment 2 = disagree
(Env for people around the 3 = neither disagree
Worry world nor agree
Factor) 4 = agree
5 = strongly agree
Care Q49G It is important to me to 1 = strongly disagree
EnvFuture protect the environment 2 = disagree
(Env for future generations 3 = neither disagree
Worry nor agree
Factor) 4 = agree
5 = strongly agree
Care Q49I I am worried about 1 = strongly disagree
Climate climate change 2 = disagree
(Env 3 = neither disagree
Worry nor agree
Factor) 4 = agree
5 = strongly agree
Care Q49J I am worried about the 1 = strongly disagree
Climate impacts of climate 2 = disagree
Comm change in my 3 = neither disagree
(Env community nor agree
Worry 4 = agree
Factor) 5 = strongly agree
Care Q49K I am worried about the 1 = strongly disagree
Climate impacts of climate 2 = disagree
Globe change around the world 3 = neither disagree
(Env nor agree
Worry 4 = agree
Factor) 5 = strongly agree
Educ Q52 What is the highest level 1 = less than hs Recoded to 5
of school completed by 2 = hs grad or ged categories:
anyone in the household? 3 = some college, 0 = 1,2,3
no degree
4 = ass degree 1=4
5 = bach degree 2=5
6 = masters degree 3=6
7 = prof or 4=7
doc degree
Liberal Q58 What categories best 1 = extremely 1 = ext cons
describes your political liberal
views? 2 = liberal 2 = cons
3 = slightly liberal 3 = slightly cons
4 = moderate 4 = moderate
5 = slightly 5 = slightly lib
conservative
6 = conservative 6 = liberal
7 = extremely 7 = ext lib
conservative
(continued on next page)
8
T. Familia and C. Horne Applied Energy 324 (2022) 119772
Table A3 (continued )
Variable Survey Question / Statement Response Categories Recodes
Table A4
Factor Analysis.
Item Env Worry Benefits Non-monetary Costs
Note. Principal components analysis, varimax rotation. We initially ran this analysis including monetary costs. Because nonmonetary cost does not load with other
factors, we reran the analysis excluding it.
9
T. Familia and C. Horne Applied Energy 324 (2022) 119772
Appendix B We also conducted analyses in which we allowed the N for each model to
vary depending on the responses for each model (see Appendix
As noted, the analyses reported in the paper include only re Table B1). This means that as we added variables to the model (and had
spondents for whom there were no missing data or don’t know responses. more missing data and don’t knows), the N drops. We find substantially
Table B1
OLS Regression showing associations with battery storage interest.
Model 1 Model 2 Model 3
Note. Unstandardized coefficients; standard errors in parentheses; *** p <.001, ** p <.01, * p <.05.
Table B2
Missing data analysis - Comparisons of Means Across Full and missing sociodemographic characteristics.
Battery storage non-adopters
Note. t-test comparing the factors of interest in the full sample to the sample when dropping observations with unique missing values in the following sociodemographic
variables: Age, Female (=1), Educ, White (=1), Income, Solar Potential, and Liberal. Differences are statistically significant if p-value less than 0.05.
10
T. Familia and C. Horne Applied Energy 324 (2022) 119772
Table B3
Missing data summary by gender.
Female Male
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