A matter of risk? Investigating the battery purchase decision in the German photovoltaics market

What roles do risk propensity and perceived risk play in interaction with the Big Five personality traits in the adoption of battery storage for photovoltaic systems? The purchase of high-priced equipment, such as battery storage, for enhancing energy efficiency is always a decision made under uncertainty. Consequently, the purchase always includes a risk component, the strength of which consumers evaluate on the basis of their individual psychological dispositions. This article examines the interaction of the Big Five personality traits, risk propensity, and two domains of perceived risk as determinants of the purchase decision using path analysis based on an online survey of photovoltaic system owners in Germany. Negative direct effects on battery adoption were demonstrated for openness and neuroticism while extraversion had a positive effect. While perceived financial risk showed a negative direct effect and perceived risk in trust in persons and companies involved had a positive direct effect on battery adoption, the influence of general risk propensity was not significant. No mediation of risk propensity via perceived risk could be detected, while neuroticism was mediated via perceived financial risk.