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It's not just Porsches and Prada shoes that are the objects of conspicuous consumerism.

Solar power panels on your roof can also speak volumes about your finances and your green credentials.

Chunbo Ma, in the School of Agricultural Resource Economics, is looking at how we can make better use of Australia's world class solar power resources without wasting government money.

Studies in the US have shown that conspicuous consumerism applies to photovoltaic (PV) panels.

"In California, some residents insist on installing their panels on the roof facing the street, even if it's in permanent shade, so that people can see they have them!" he said.

Assistant Professor Ma's research has found that conspicuous consumerism extends to the choice of green power from Synergy.  "Our hypothetical survey returned findings that up to 70 per cent of people who said they would choose it opted for the minimum amount, about 25 per cent," he said.

"This compared with Synergy's actual data which showed an average of 32 to 35 per cent, just above entry level. People are buying a concept rather than being truly committed. You can tell your friends that you care for the environment when you are not actually a consistent contributor."

Professor Ma said there was a concern that PV subsidies were regressive, as wealthy families would be more likely to install PVs.

"However in Perth, the highest numbers of PV panels are not found in the wealthier suburbs, but in areas like Mandurah and the northern suburbs."

The highest percentage of PV panels in a Perth suburb is about 15 per cent of the homes, or one in seven.

"We have seen frequent stop-start of subsidy policy and feed-in-tariffs at both federal and state government level, as a result of over-subscription, which indicates a lack of understanding of consumer demand and decision making," Professor Ma said. "Even when the subsidy reduced, people still bought and installed PV panels.  I think the Government underestimated people's support for renewable energy.

"Perhaps it doesn't need to offer incentives.  Why give away taxpayers' dollars when people are willing to make the change themselves?  That money could be spent on all sorts of other good things like health and research," he said.

Professor Ma said the University subscribed to Nearmap, an online service provided by a local company which flies over Perth and supplies high resolution aerial photographs.

"These photographs have allowed us to see the cluster effect of PV panels. While government subsidies were important to begin with, I think the peer effect is also a crucial driving force. When your neighbour gets PV panels on the roof, you chat about it and it gives you confidence to do the same, just as with any appliance. And you see local clusters developing over time.

"If it was a marketing strategy, rather than peer-to-peer information, PV diffusion would present different patterns across communities and over time."

He said people usually looked at the initial cost of installation, then calculated their savings on power bills before installing PV panels.

"But what is often ignored is the premium it adds to your property. We estimate a three to five per cent premium, all other things being equal. On a $500,000 home, at three per cent, that's $15,000, much more than the current cost of purchase and installation of panels.

"We need to verify this but I think it's something that real estate agents could use as a selling point and it could also mean the scheme needs less government support."

Professor Ma has an ARC grant of $372,000 over three years and hopes that his outcomes will be useful for the energy industry and the government for formulating business strategies and policies.