Clean energy and extreme poverty: The cost burden of donated solar home lighting systems

Abstract

People living in extreme poverty may not be able to afford donated solar home lighting systems. These systems improve quality of life but they may not lift people out of poverty. Users must participate in savings programs, maintain savings themselves, or be able to arrange credit to pay for substantial future costs, such as battery replacement. The monthly savings needed for component replacement in typical solar home systems is less than many rural households spent on candles or other lighting sources before the system was installed, reducing energy costs. However, some households cannot always afford to buy traditional lighting sources. In these cases, the solar home system may increase their energy cost burdens or force the systems to fail when components need replacement. Before implementing home lighting programs in poor communities, sponsors must realistically assess households' ability to pay the ongoing system costs necessary. If households will not be saving money by using solar lighting, the development agenda should be reviewed to determine if the provision of electricity is the most urgent need.