Name: Meenakshi Swami & Sarabjeet Kaur
Country: India

Year: 2025
Volume: Volume-12, Issue-2 (July-December)
Page Number: 102-119
DOI: https://doi.org/10.5281/zenodo.17310168

ABSTRACT:
This study investigates the impact of cost and return on investment in renewable energy
sources on investor preferences and decision-making. Using Structural Equation Modeling
(SEM), a structural model was developed to examine these relationships based on various
indicators. Primary data from investors and prospective investors in renewable energy sector
were collected for items representing latent variables, and the analysis confirmed the
robustness of the findings. The results revealed that both cost and return on investment
significantly influence investment evaluation metrics, highlighting the critical role of
financial factors in renewable energy investment decisions. The findings suggest that cost
and return are major drivers in investment decisions, with small investors particularly
influenced by financial risks and opportunities. To stimulate investment, it is recommended
that attractive financial packages, government support, and incentives be provided to enhance
investor confidence and promote greater participation in renewable energy investments.
Keywords: SEM Analysis, initial cost, Cost and return on investment, choice of investment,
renewable energy sector, renewable energy, RE investments, investors preference, zero
emissions, public opinion, policy, public and private sectors, investors and prospective
investors, investment evaluation metrics, financial factors, investment decisions, drivers in
investment decisions, financial risks and opportunities, financial packages, government
support, and incentives, participation, growth potential of renewable energy, long-term
financial returns, opportunities, social and environmental, funds, SDG