Economic Viability and Socio-Environmental Impacts of Solar Home Systems for Off-Grid Rural Electrification in Bangladesh

Swati Anindita  Sarker; Shouyang Wang; KM Mehedi  Adnan; Muhammad Khalid Anser; Zeraibi Ayoub; Thu Hau Ho; Riffat Ara Zannat Tama; Anna Trunina; Md Mahmudul Hoque

doi:10.3390/en13030679

Economic Viability and Socio-Environmental Impacts of Solar Home Systems for Off-Grid Rural Electrification in Bangladesh

Swati Anindita Sarker
, Shouyang Wang
, KM Mehedi Adnan
, Muhammad Khalid Anser
, Zeraibi Ayoub
, Thu Hau Ho
, Riffat Ara Zannat Tama
, Anna Trunina
, Md Mahmudul Hoque

Huazhong Agricultural University
University of Chinese Academy of Sciences
EXIM Bank Agricultural University
Sylhet Agricultural University
Xi'an University of Architecture and Technology
Xi’an Jiaotong University
Institute of Development Studies

Research output: Contribution to journal › Article › peer-review

56 Citations (Scopus)

82 Downloads (Pure)

Abstract

This study conducted a questionnaire-led survey to explore the financial feasibility and socio-environmental impacts of stand-alone solar home systems (SHS) through stratified random sampling. Based on the above consideration, fifteen cases of studies of various watt peak (Wp) capacities have been investigated to evaluate the economic viability of solar home systems. The results revealed that most of the cases have positive net present value (NPV) and low payback periods, with an internal rate of return (IRR) value ranging from 16% to 131%, which signifies a high rate of investment exchange. Solar home systems are economically profitable for micro-enterprises and households with low-income generation activities as opposed to the households using it only for lighting. The study found that solar home systems with a capacity above 30 Wp are the most economically viable option, which can also avoid 6.15 to 7.34 tonnes of CO₂ emissions during the 20 years of life-cycle, while providing different applications including lighting, recreation, information, health, and economic benefits.

Original language	English
Article number	679
Number of pages	15
Journal	Energies
Volume	13
Issue number	3
DOIs	https://doi.org/10.3390/en13030679
Publication status	Published - 5 Feb 2020
Externally published	Yes

Bibliographical note

This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).

Funder

This research was supported by the “CAS-TWAS President’s Fellowship” and The National Nature Science Foundation of China under Grant numbers 71390330 and 71390331.

Funding

Funders	Funder number
National Natural Science Foundation of China	71390330, 71390331

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

solar home system
economic viability
financial analysis
environment
Bangladesh

ASJC Scopus subject areas

Control and Optimization
Energy (miscellaneous)
Energy Engineering and Power Technology
Electrical and Electronic Engineering
Fuel Technology
Renewable Energy, Sustainability and the Environment

Access to Document

10.3390/en13030679Licence: CC BY

PublishedFinal published version, 1.18 MBLicence: CC BY

Cite this

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title = "Economic Viability and Socio-Environmental Impacts of Solar Home Systems for Off-Grid Rural Electrification in Bangladesh",

abstract = "This study conducted a questionnaire-led survey to explore the financial feasibility and socio-environmental impacts of stand-alone solar home systems (SHS) through stratified random sampling. Based on the above consideration, fifteen cases of studies of various watt peak (Wp) capacities have been investigated to evaluate the economic viability of solar home systems. The results revealed that most of the cases have positive net present value (NPV) and low payback periods, with an internal rate of return (IRR) value ranging from 16\% to 131\%, which signifies a high rate of investment exchange. Solar home systems are economically profitable for micro-enterprises and households with low-income generation activities as opposed to the households using it only for lighting. The study found that solar home systems with a capacity above 30 Wp are the most economically viable option, which can also avoid 6.15 to 7.34 tonnes of CO2 emissions during the 20 years of life-cycle, while providing different applications including lighting, recreation, information, health, and economic benefits.",

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note = "This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).",

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doi = "10.3390/en13030679",

language = "English",

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AU - Sarker, Swati Anindita

AU - Wang, Shouyang

AU - Adnan, KM Mehedi

AU - Anser, Muhammad Khalid

AU - Ayoub, Zeraibi

AU - Ho, Thu Hau

AU - Tama, Riffat Ara Zannat

AU - Trunina, Anna

AU - Hoque, Md Mahmudul

N1 - This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).

PY - 2020/2/5

Y1 - 2020/2/5

N2 - This study conducted a questionnaire-led survey to explore the financial feasibility and socio-environmental impacts of stand-alone solar home systems (SHS) through stratified random sampling. Based on the above consideration, fifteen cases of studies of various watt peak (Wp) capacities have been investigated to evaluate the economic viability of solar home systems. The results revealed that most of the cases have positive net present value (NPV) and low payback periods, with an internal rate of return (IRR) value ranging from 16% to 131%, which signifies a high rate of investment exchange. Solar home systems are economically profitable for micro-enterprises and households with low-income generation activities as opposed to the households using it only for lighting. The study found that solar home systems with a capacity above 30 Wp are the most economically viable option, which can also avoid 6.15 to 7.34 tonnes of CO2 emissions during the 20 years of life-cycle, while providing different applications including lighting, recreation, information, health, and economic benefits.

AB - This study conducted a questionnaire-led survey to explore the financial feasibility and socio-environmental impacts of stand-alone solar home systems (SHS) through stratified random sampling. Based on the above consideration, fifteen cases of studies of various watt peak (Wp) capacities have been investigated to evaluate the economic viability of solar home systems. The results revealed that most of the cases have positive net present value (NPV) and low payback periods, with an internal rate of return (IRR) value ranging from 16% to 131%, which signifies a high rate of investment exchange. Solar home systems are economically profitable for micro-enterprises and households with low-income generation activities as opposed to the households using it only for lighting. The study found that solar home systems with a capacity above 30 Wp are the most economically viable option, which can also avoid 6.15 to 7.34 tonnes of CO2 emissions during the 20 years of life-cycle, while providing different applications including lighting, recreation, information, health, and economic benefits.

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KW - financial analysis

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Economic Viability and Socio-Environmental Impacts of Solar Home Systems for Off-Grid Rural Electrification in Bangladesh

Abstract

Bibliographical note

Funder

Funding

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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Cite this