Innovating in the off-grid sector: Sustainable supply chains and business models for solar home system provision in Bangladesh and Kenya

Abstract

According to researchers and planners, the provision of solar home systems benefits rural electrification and electricity access. It creates opportunities for income generating activities, economic growth, and innovation. This article introduces an ontology of evaluation methods for the provision of solar home systems and demonstrates how a complementary approach can be used to value innovation and sustainability on the supply side. For both case studies, Kenya and Bangladesh, a historical event analysis of sector data from 2013 to 2021 is carried out to measure diffusion-based innovation. Business model innovation is then used to assess the value of solar firms' organizational innovation. It is found that above all high levels of entrepreneurial activities and resource mobilization are key factors for a strong supply side. If these factors are complemented by innovative, user-centric business models, sustainable supply of solar home systems can be achieved. Limitations are highlighted and the implications of non-quantifiable assessment criteria are addressed. From a supply standpoint, researchers and planners may utilize the results to demonstrate the advantages of private sector-led solar home system provision, to answer concerns about the sustainability of their deployment, and to guide and design further research studies.