Assessing Electric Water Heater Adoption and Feasibility for Micro-Enterprise Electrification in Banda Aceh
DOI:
https://doi.org/10.46799/adv.v4i11.715Keywords:
electric water heater, electrification, Technology Acceptance Model, PLS-SEMAbstract
Indonesia's dependence on subsidized liquefied petroleum gas (LPG), coupled with recurring shortages in Aceh, creates cost and supply risks for coffee shops that require hot water for up to 18 hours per day. This study assesses the financial feasibility of electric water heaters (Ie Warm) under the PLN RENCONG program as an alternative to LPG and examines coffee shop owners' intentions to adopt the technology in Banda Aceh. Financial feasibility was evaluated through installation trials at two coffee shops using the payback period, net present value (NPV), internal rate of return (IRR), and profitability index (PI). Adoption intentions were analyzed using an extended Technology Acceptance Model (TAM) incorporating cost affordability and perceived safety, with partial least squares structural equation modeling (PLS-SEM) applied to survey data from 72 valid respondents. Electricity had a lower cost per unit of useful energy than LPG, resulting in savings of 62.1% compared with non-subsidized LPG cylinders and 24.2% compared with subsidized cylinders. All investment scenarios were financially feasible, with payback periods ranging from 5.14 to 23.64 months and positive NPV values. Perceived usefulness was the only belief construct that significantly influenced attitude (? = 0.809), while attitude strongly predicted behavioral intention (? = 0.785). Perceived ease of use had no significant effect on attitude (? = 0.016), whereas perceived safety was the strongest predictor of perceived usefulness (? = 0.700). However, behavioral intention remained below the neutral point, and 97.2% of respondents had never observed the device in operation. Therefore, this study proposes a segmentation, targeting, and positioning (STP) strategy emphasizing product demonstrations, safety, and supply security, with initial targeting focused on coffee shops that use non-subsidized LPG cylinders and have sufficient electrical capacity.
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