The economics of residential solar water heaters in emerging economies: The case of Turkey

Erdal Aydin*, Piet Eichholtz, Erkan Yonder

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


In many emerging economies, household consumption of polluting solid fuels is still very high. We study the economics of one specific clean energy appliance that has been an important alternative for solid fuels in many developing countries: solar water heaters. Using a dataset including detailed information for around 23,000 turkish households, 61% of which still use solid-fuel stoves, we first examine the determinants of the adoption of solar water heaters. We document that income, education, geographical location and the type of space heating system are important factors driving the adoption of solar water heaters. Analyzing the energy consumption of households, we find that total household energy consumption is reduced by around 13% when a solar water heater is present. Relating their presence to housing market outcomes, we document that the perceived value of owner-occupied homes increases by 6%, and find a three percent rent premium in the rental housing market.
Original languageEnglish
Pages (from-to)285-299
Number of pages15
JournalEnergy Economics
Publication statusPublished - Sept 2018


  • Solar water heating
  • Solid fuels
  • Green energy
  • Residential sector
  • House prices


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