Assessing The Norwegian Solar Industry: The Role of Learning towards Solar Adoption in Norway

Abstract

There is an urgent need for a more renewable energy source to reduce the effect of the greenhouse gas emissions in the world (EU 2010). This need for a renewable energy source as an alternative to fossil fuel has given rise to government incentives and subsidies in the solar industry in Norway. Amidst the subsidies, there are still challenges that have prevented optimal diffusion of the solar technology in Norway. For this reason, this study aims to examine the solar industry and to understand the underlying reasons behind the low solar technology diffusion in Norway. There is a large body of literature on the role of R&D and Government incentives in stimulating the adoption and diffusion of solar in Norway. However, this project contributes to expound on the role of firms’ action in stimulating solar adoption in Norway. This study combines the learning curve theory and organizational learning theory as a framework for this project. The learning curve was used to assess the influence of experience on the performance of the firms while the organizational learning theory was used to explain how learning is likely to affect solar adoption. The study uses both a quantitative and qualitative research method to examine the past, the current state and the influence of learning on the future of the solar technology. The results showed that there was no significant relationship between firms’ experience and the firm’s performance due to learning. The study finally proposes that high performance in the firms alone is not enough to boost adoption unless other external problems are rectified. Thus, increased interaction between the firms and its environment is likely to result in better knowledge and understanding that will lead to increased solar adoption.