A study on the factors affecting household solar adoption in Kerala, India Chandan Parsad Rajagiri Business School, Kochi, India Shashank Mittal Department of OB and HR, Rajagiri Business School, Kochi, India, and Raveesh Krishnankutty Department of Finance and Economics, Rajagiri Business School, Kochi, India Abstract Purpose – Recent research on the energy system highlights the need for understanding the bandwidth of drivers and inhibitors of household investor’s behaviour in rooftop PV (or photovoltaic power system) and to fit the broader socio-economic context in which they are deployed. However, apart from few exceptions, these newer perspectives have not been duly applied in the research on rooftop PV. This paper aims to fill this gap and to shed new light on rooftop PV investment decisions. Design/methodology/approach – This study has been conducted with the primary data collected using two data sets of 237 households and 387 households of Indian southern state Kerala using survey-based questionnaire. The findings from first data set revealed that households considering the adoption of PV were likely influenced by six distinct factors, three motivators and three inhibitors. Second data set for multi-state analytic approach was proposed whereby the research model was tested using structural equation modelling (SEM). The outcomes of SEM were used as inputs for an artificial neural network (ANN) model for forecasting investor investment decision in in renewables. The ANN model was also used to rank the relative influence of significant predictors obtained from SEM. Findings – In line with the risk–return framework, government subsidies act as primary motivator which helps in overcoming the initial risk of investment in the new technology. Further, low prices and low cost of maintenance are some of the financial motivators which may likely mitigate the long-term apprehension of returns and maintenance cost. Lastly, the strongest motivators of PV investment come from the environmental and financial motivator in the form of PV subsidies, which further solidifies the role of policy interventions in investment decision. The ANN model identified the technical barrier and knowledge and awareness factors play a significant role in forcasting the investor investing decision. Practical implications – The study results will be useful for policymakers for framing strategies to attract and influence their investment in renewable energy. Originality/value – Building upon behavioural finance and institutional theory, this paper posits that, in addition to a rational evaluation of the economics of the investment opportunities, various non-financial factors affect the household’s decision to invest in renewables. Keywords Private household investment in rooftop PV, Behavioural finance, Risk–return framework in energy investment, Financial motivators and barriers, Environmental, Energy and awareness and institutional factors Paper type Research paper Introduction Sun-powered vitality is a sustainable free wellspring of vitality that is supportable and limitless, dissimilar to limited and non-renewable energy sources. It is likewise a non- contaminating wellspring of vitality, and it does not discharge any ozone-harming substances while creating power. Despite the established multi-fold benefits of solar energy and its widespread diffusion around the world, the private household investment in the rooftop solar remains largely elusive; that too when extensive credit lines, incentive drives, concessional offerings and lucrative loans were made available by governments across the world Factors affecting household solar adoption The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/1741-0401.htm Received 25 November 2019 Revised 26 March 2020 23 May 2020 Accepted 29 May 2020 International Journal of Productivity and Performance Management © Emerald Publishing Limited 1741-0401 DOI 10.1108/IJPPM-11-2019-0544