An analysis of factor affecting the solar home system market in Rwanda

Abstract

The Solar Home System (SHS) has emerged as the answer to rural electricity in Rwanda, a developing nation where improving rural living conditions, rural electrification, and sustainable development are the primary development objectives. This study investigates the causes of the recent fall in SHS for lighting users in Rwanda based on adaptability and size in the choice to purchase SHS. In this article, adoption and sizing decisions that affect the choice to buy a home solar system are attempted to be quantified. Multivariate Probit (MVP) model are used to analyze the data. The same non-income factors— kerosene, rechargeable batteries, phone charging time, the number of children, and indoor pollution are presented in this research as the primary criteria for adjusting SHS and determining size. The study found that the level of kerosene use is found to have a substantial impact on the decision to begin using the light of SHS. It’s also found that non-income factors play a big role in the spread of SHS in rural Rwanda. The study concludes that household income alone is insufficient to estimate the latent demand for SHS in Rwanda.