While this article doesn't get into mechanism, it appears that the biggest predictor of whether someone puts solar panels on their roof is whether their neighbors do. This suggests a snowball effect similar to what we've seen with EV's -- that climate action breeds more climate action, meaning that individual choices (when supported by policy) can scale to big impacts!

https://www.nature.com/articles/s41598-021-87714-w

Decay radius of climate decision for solar panels in the city of Fresno, USA - Scientific Reports

To design incentives towards achieving climate mitigation targets, it is important to understand the mechanisms that affect individual climate decisions such as solar panel installation. It has been shown that peer effects are important in determining the uptake and spread of household photovoltaic installations. Due to coarse geographical data, it remains unclear whether this effect is generated through geographical proximity or within groups exhibiting similar characteristics. Here we show that geographical proximity is the most important predictor of solar panel implementation, and that peer effects diminish with distance. Using satellite imagery, we build a unique geo-located dataset for the city of Fresno to specify the importance of small distances. Employing machine learning techniques, we find the density of solar panels within the shortest measured radius of an address is the most important factor in determining the likelihood of that address having a solar panel. The importance of geographical proximity decreases with distance following an exponential curve with a decay radius of 210 meters. The dependence is slightly more pronounced in low-income groups. These findings support the model of distance-related social diffusion, and suggest priority should be given to seeding panels in areas where few exist.

Nature
@JacquelynGill Cool! There are some other papers that suggest that the visibility of the solar panels also plays a role. Neighbors are more likely to install panels when the panels are more visible. (See link below). Peer effects are important!
https://pubsonline.informs.org/doi/abs/10.1287/mksc.2021.1306
Visibility and Peer Influence in Durable Good Adoption

@JacquelynGill So interesting. We put solar panels on our landmarked house over the summer, and it was such an ordeal with DOB. But! multiple neighbors now want to wade into the same ordeal! Whoot!
@JacquelynGill Interesting study. The peer effect makes perfect sense. I wonder if power prices are starting to bite more now though.
It looks like this research was done just before the invasion of Ukraine and the subsequent spike in power costs brought on by oil, gas and coal prices.
In Australia at least, this is a significant issue and rooftop solar which attracts a govt subsidy is a no brainer. This is the policy you mention.
Huge solar resource in this country. If you have rooftop solar you are paying next to nothing for your electricity unless you live in locations that have seasonal heating or air cond needs.
The more important issue here is equity. How to support low income, renters, apartment owners and others who can’t install solar panels.
Community solar banks and batteries is one solution being implemented here.
FOMO takes on a whole new meaning when your electricity bill is increasing by 60-70%.
@JacquelynGill I’d love to put in solar but my roof is in the wrong place/shape.
@ianlewis Mine is not great, either, though we're still hoping to, especially if we can leverage our detached garage. I'm not a huge fan of solar farms where I live, largely because they're not being deployed in smart places (rooftops, parking lots) -- instead, they're in places that should be used for food or forests.