Expanding energy access in rural off-grid communities: a study on household adoption and affordability of solar home systems in Kwara State, Nigeria

Abstract

This investigation scrutinizes the adoption dynamics and willingness to pay (WTP) for Solar Home Systems (SHS) within the context of rural off-grid communities in Kwara State, Nigeria. A comprehensive survey was administered to 400 households to explore their perspectives towards SHS and to ascertain their valuation of these systems. The results reveal a favourable disposition towards SHS, with a notable proportion of participants favouring personal ownership of SHS even in the event of future grid electricity availability in their localities. The consensus among respondents was that SHS provide sufficient energy to cater to their needs and could potentially act as an income source. The Payment Card (PC) method within the Contingent Valuation (CV) framework was utilized to determine WTP, eliciting precise values from the surveyed households. The derived average monthly WTP for SHS fluctuated between 72% and 75% of the current market rates, exposing an affordability challenge as the WTP falls short of the prevailing market prices. In light of fostering wider adoption, it is imperative for policymakers and SHS providers to consider market price reductions and the initiation of innovative pricing mechanisms that align with household financial capacities. Further research is encouraged on alternative financing strategies and potential subsidy programs to bridge the affordability gap and bolster SHS accessibility in off-grid rural areas. Understanding the household adoption dynamics and WTP for SHS is instrumental in driving sustainable energy transitions and enhancing the living standards of rural dwellers.