This section will present the results of the quantitative analysis of the responses to the survey, with the aim of shedding light on the determinants that influence property owners in the UAE to invest in microgrid technology. The data obtained from the survey of 59 property owners have been meticulously analyzed, employing robust statistical methods including descriptive statistics, correlation, and regression analyses. The findings presented here are not just statistical interpretations but are also contextualized within the broader background of the UAE’s strategic energy objectives, market dynamics, and sustainability goals.
5.3. Hypotheses Testing through Linear Regression
Linear regression is instrumental in evaluating the strength and direction of relationships between variables and provides a quantitative understanding of how changes in one variable may predict changes in another. The regression analysis in
Table 3 through the ANOVA table assesses the overall statistical significance of the regression model. The regression sum of squares (18.963) and residual sum of squares (1.918) contribute to the total sum of squares (20.881). With 6 degrees of freedom for regression and 52 degrees of freedom for residual, the F statistic (85.690) is highly significant (Sig. < 0.001). This implies that at least one of the independent variables significantly predicts the dependent variable. The low residual sum of squares indicates that the model captures a substantial portion of the variability in the dependent variable.
The ANOVA in
Table 3 assesses the overall statistical significance of the regression model. The regression sum of squares (18.963) and residual sum of squares (1.918) contribute to the total sum of squares (20.881). With 6 degrees of freedom for regression and 52 degrees of freedom for residual, the F statistic (85.690) is highly significant (Sig. < 0.001). ANOVA table is generated through SPSS. The regression Df (6) represents the number of predictors, while the residual Df (52) is calculated as the total number of observations minus the parameters estimated in the model, usually reported as the total minus the number of predictors minus 1. This implies that at least one of the independent variables significantly predicts the dependent variable. The low residual sum of squares indicates that the model captures a substantial portion of the variability in the dependent variable.
The model summary in
Table 4 provides an overview of the regression model’s performance. The R Square value of 0.908 indicates that approximately 90.8% of the variability in the dependent variable is accounted for by the independent variables. The adjusted R square (0.898) considers the number of predictors, offering a slightly more conservative estimate. The Std. error of the estimate (0.192) reflects the accuracy of the model, measuring the average distance between the observed and predicted values. Overall, the high R square suggests a robust model fit, indicating that the included predictors effectively explain the variance in the dependent variable.
The regression analysis in
Table 5 presents the coefficients and statistical significance of each predictor variable. The constant (intercept) is not statistically significant (
p = 0.658). The predictor variables, namely UAE strategy, CO
2 emission reduction, and disaster recovery, demonstrate statistically significant relationships with the dependent variable (
p < 0.05). The t-values indicate the strength and direction of these relationships. UAE strategy (t = 17.566) exhibits a particularly strong influence, followed by CO
2 emission reduction (t = 2.313), as shown in
Figure 5. Other variables such as profitable returns, digitalization, and renewable energy do not show statistically significant relationships with the dependent variable at the conventional significance level (
p > 0.05). The standardized coefficients (Beta) provide insights into the relative importance of each predictor, with UAE strategy having the highest impact on the dependent variable.
Based on the results of collinearity statistics, it can be stated that VIF values below 10 suggest low multicollinearity. In our analysis, the variables “UAE Strategy”, “Profitable Returns”, “Digitalization”, “Renewable Energy”, “CO2 Emission Reduction”, and “Disaster Recovery” have VIF values ranging from 1.087 to 2.155. This means that there is an acceptable level of multicollinearity. Tolerance values close to 1 indicate low multicollinearity. Here, all variables have tolerance values above 0.4, with “UAE Strategy” having the lowest at 0.623. Hence, the collinearity for “UAE Strategy,” is not severe. Overall, the collinearity statistics suggest that multicollinearity is generally low among the independent variables.
Based on the regression results in
Table 5, only three variables are positively associated with willingness to invest, which are UAE strategy, CO
2 Emission Reduction, and Disaster Recovery. Then, these variables were tested again using stepwise regression analysis. Stepwise regression is used to select the most relevant independent variables for inclusion in a regression model. It iteratively adds or removes variables based on their statistical significance. Stepwise regression contributes the most to explaining the variation in the dependent variable. Further, it automates the variable selection process to deal with a large number of potential predictor variables. The results are presented in the
Table 6 and
Table 7.
In the stepwise regression analysis in the
Table 6 and
Table 7, UAE Strategy emerges is the only significant predictor of willingness to invest (
p < 0.001), indicating its strong positive impact. CO
2 Emission Reduction and Disaster Recovery were excluded from the model due to their non-significant contributions, as these has shown negligible effects on willingness to invest (β = 0.058 and −0.065, respectively).
Based on the results of the regression analysis, and as shown in
Figure 6, we can develop the following responses to the hypotheses of
Section 3.1:
H1. If the microgrid is aligned with UAE strategic direction, then consumers should be willing to invest in microgrid.
The highly significant positive coefficient for UAE strategy (B = 0.939, p < 0.001) strongly supports the hypothesis. As microgrids align with UAE strategy, there is a substantial increase in consumers’ willingness to invest. This underscores the strategic importance of aligning energy initiatives with national goals. When the UAE strategic direction is in a positive trend which supports customers and offers services that are beneficial to them, then customers become willing to invest in microgrid projects. The hypothesis supports that the perception that UAE government views MG as a promising avenue for aligning personal values with energy choices.
H2. If microgrid projects bring profitable returns, then consumers should be willing to invest in microgrids.
While the variable profitable returns show marginal significance (B = 0.038, p = 0.102), data analysis indicates that the p-value is above 0.1, which makes the association less significant. A p-value of 0.05 or below would have provided strong support to the hypotheses. A value of 0.102, as in this case, makes the relationship weak. In this regard, H2 is not acceptable. The reason of the non-significance of this variable could be because all respondents catered are those who own a villa. These individuals might be less concerned about the cost and can invest conveniently in microgrids. Consequently, the overall results do not support the hypotheses.
H3. If the microgrid supports digitization, then consumers should be willing to invest in it.
Digitalization (B = 0.015, p = 0.756) lacks significance, indicating it may not be a significant predictor of the participants’ willingness to invest. The relationship between these variables is not found, hence, we reject the H3. Respondents may have considered digitization as a form of gaining energy independence. This balancing act illustrates that the benefits need to be higher than the challenges for people to enthusiastically invest in microgrids. Individuals and businesses want to be sure that digitalization it is beneficial and profitable.
H4. If the microgrid improves the utilization of RE, then consumers should be willing to invest in it.
The non-significant coefficient for renewable energy (B = −0.057, p = 0.105) suggests that improved utilization may not be a driving factor in consumer investment decisions. This calls for a reevaluation of the assumed relationship between renewable energy and the willingness to invest. Hence, we reject the 4th hypothesis. The idea of utilizing renewable energy corresponds to the group opinion about microgrids. Breaking down the complexity and showing that microgrids can be affordable is important. It is like unraveling a mystery; the more awareness there is about the issue, the less intimidating it becomes. Targeted communication that speaks directly to these concerns can be a game-changer.
H5. If the microgrid reduces CO2 emissions, then consumers should be willing to invest in it.
The significant positive coefficient for CO2 emission reduction (B = 0.145, p = 0.025) indicates that consumers are more willing to invest when microgrids contribute to lower carbon emissions. This aligns with the concept that environmental concerns influence investment decisions. Therefore, the fifth hypothesis can be accepted. Beyond the association between sustainability and willingness to invest, it can be said that there is a strong emphasis on the environmental impact of microgrid adoption. Respondents had a commitment to reducing their ecological footprint, showcasing a values-driven approach that extends beyond mere cost considerations.
H6. If the microgrid improves disaster recovery, then consumers should be willing to invest in it.
The highly significant coefficient for disaster recovery (B = −0.120, p < 0.015) indicates that enhanced disaster recovery is associated with reduced willingness to invest. This warrants in-depth exploration of the factors influencing investor perceptions in the context of disaster recovery management. Hypothesis Six is, therefore, acceptable, as the p-value is high significant (below 0.001).
It is evident from the data collected here that the participants prefer to understand the risks and benefits of microgrid technologies before they are prepared to invest in it. Disaster management is about more than just money; it is about whether microgrids can easily fit into how things already work. Businesses are concerned about how microgrids can make their operations smoother.
5.4. Comparison of Findings with the Existing Literature
The comparison of findings with the existing literature is a critical aspect of research, providing valuable insights into the alignment or divergence of current study outcomes with established knowledge. In the context of the research on villa owners’ willingness to invest in microgrid technology in the UAE, it is essential to compare the study’s findings with the existing body of literature on renewable energy adoption, consumer behavior, and technology investment in similar contexts.
Strategic alignment and community awareness are identified as key factors that significantly impact consumers’ willingness to invest in microgrid technology [
8,
18]. This is consistent with previous research that highlights the importance of using standards of sustainability and clear communication to involve local communities [
19,
20]. For UAE villa owners, aligning their investment plans with government policies on the environment might serve as a catalyst for consumer commitment [
8], echoing the global trend of reducing CO
2 emissions [
9]. Nevertheless, some inconsistencies necessitate additional investigation.
Profitability (which shows all that has been achieved, taking into account projects, savings, sales, revenues, and other elements of the enterprise), has been shown to have an impact on investment decisions, although previous research suggests that they may not be as significant as financial returns (return on investment) [
12,
35,
40]. This necessitates additional examination of the financial factors that influence the decisions of villa owners in the UAE. The lack of a significant correlation between digitalization and the participants’ willingness to invest contradicts previous studies that have indicated beneficial effects of digitalization [
16]. This discrepancy raises inquiries regarding the specific factors that may influence consumer attitudes in the UAE. The alignment of renewable energy programs with the national strategy increases the rate at which they are adopted [
6], as it corresponds with the UAE’s strategy’s favorable association with the willingness to invest. In addition, the importance of reducing CO
2 emissions is in line with the worldwide emphasis on sustainability [
30]. Nevertheless, the lack of a substantial correlation with digitization contradicts the findings in the literature [
4], which justifies the need to investigate the specific subtleties in the UAE context. The impact of disaster recovery on the willingness to invest is a subject of interest, as it may correspond with the findings of previous research [
18]. Therefore, comprehending the unique socioeconomic and geographical features particular to the UAE might provide valuable insights for designing resilient microgrids.
To sum up, several studies discuss the effects of public awareness on the willingness of its members to invest in and pay for microgrid projects [
6,
18,
19,
20,
21,
22,
23,
24,
25,
26,
27,
28,
29]. For instance, for [
19], the marginal significance of profitable returns in influencing the public’s willingness to invest contrasts with some studies that emphasize the pivotal role of financial returns in driving technology adoption. This discrepancy could stimulate further exploration into the unique economic considerations of villa owners in the UAE.