Background: Although, solar energy is abundant, accessible, affordable, and ecologically and environmentally friendly, in rural Ethiopia the majority of households are still using pollutant kerosene for lightning. It is important to understand demand and supply-side factors affecting the adoption of the technology. For this purpose, this study investigates the factors influencing household adoption of solar home system (SHS).
Methodology: The data used for the econometric model was collected from randomly selected 228 adopters and 143 non-adopter households in Baso Liben district, Amhara region of Ethiopia. The logistic regression model was applied to examine the factors affecting household adoption of solar home system.
Results: The finding of this study shows significant variation in many socioeconomic and demographic characteristics between adopters and non-adopters of solar home system. The result of the binary logistic regression model indicated that as income of household increase, their propensity to adopt solar home system also increases. Likewise, participation in off-farm income activities, house type, educational status, training access, media access, and prior knowledge positively correlated with the adoption of SHS. On the other hand, gender and access to electricity are negatively associated with the adoption of SHS.
Conclusion: Policy measures should create awareness through training, education, and information access or better media availability, and improving the economic status of households through creating lucrative off-farm income-earning opportunities to achieve enhanced adoption of the solar home system.