Purpose: This research scrutinized the influence of the Lemons market problem arising from information asymmetry in the solar products market. On the other hand, certain innovation diffusion factors were also studied that encouraged the adoption of solar products.

Methodology: A purposive sampling technique was used to select customers or potential customers of solar products from rural regions of Pune district. A structured questionnaire was circulated, and 568 complete responses were collected. The collected data were analyzed using structural equation modeling with software such as SPSS and AMOS.

Findings: Lemons market problem had a significant negative influence on the adoption of solar products, while innovation diffusion factors had a positive and significant effect. Practical

Implications: Marketers, dealers, and sellers of solar products should address information asymmetry by transparently communicating the actual quality and benefits of their products. They should provide free trials and peer demonstrations to escalate solar adoption. Signaling techniques such as certifications, warranties, clear pricing, and reliable after-sales services could address the Lemons Market problem and boost solar adoption.

Value: Unlike previous studies on solar adoption, the current research pioneered the analysis of the combined effects of the diffusion of innovation factors and the market for Lemons theory in the context of solar acceptance. Thus, this study clarified vital barriers and drivers of solar adoption contributing to the solar energy and marketing literature.

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