Determinants of Green Energy Utilization Among Small and Medium-sized Enterprises in Ekiti State Ngeria

Abstract

This study investigated the determinants of green energy adoption among small and medium-sized enterprises (SMEs) in Ekiti State, Nigeria. Primary data was obtained from 320 participants through a well-structured questionnaire. The data was analyzed using descriptive and inferential statistics. Logistic regression analysis was employed to ascertain the impact of solar energy usage by SMEs, while a one-sample t-test was utilized to examine the hypothesis that there was no substantial disparity in green energy expenditure between agricultural and non-agricultural SMEs in the research region. The findings indicated that non-agricultural SMEs were highly examined (72.2%) compared to agricultural SMEs (27.8%). Most SMEs had completed secondary school, while some had OND/NCE (23.1%) and B.Sc./HND (20.6%) degrees. The entrepreneurs had 7.1 years of business experience and earned an average monthly salary of N92,206.30. The utilization of solar energy was the predominant approach (71.9%) for alleviating the environmental effects of greenhouse emissions. Three significant factors that influenced the utilization of solar energy by small business owners were the average monthly estimated power costs (-6.211E-005), the average cost of wiring a small firm's production environment (1.934E-005), and the BEDC service support rating (1.806). SMEs experienced an abnormally high rate of inaccurate billing (90%) from the power distribution company (BEDC) and an unreliable power supply (89%) with less than 4 hours of energy each day. The t-test results indicate a significant difference in green energy investment between the two groups, at a level of significance of 1%. This study suggests that the Ekiti State government should actively stimulate the growth of green energy among SMEs by promoting collaboration, increasing awareness, and fostering public-private partnerships.