Determinants of microfinance facility for installing solar home system (SHS) in rural Bangladesh

Khan, Tahsina; Khanam, Shamsun Nahar; Rahman, Habibur; Rahman, Syed Mahbubur

doi:10.1016/j.enpol.2019.05.047

Cited by 50 publications

(34 citation statements)

References 35 publications

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“…Financing at lower interest rates significantly improves the economics of investment in residential solar PV (Hagerman, Jaramillo and Morgan 2016). In another study, Khan et al 2019 found that 60% of the users of the solar home system prefer installment payment financed through microcredit. This flexible financing scheme may increase the market share of the solar PV system, reach a greater number of households and increase their acceptance of the PV system to uplift the living standard in remote and underserved communities (Pode 2013).…”

Section: Summary Of Findings and Relation To Prior Studiesmentioning

confidence: 99%

Optimal Investment Strategy for Solar PV Integration in Residential Buildings: A Case Study in The Philippines

Guno¹,

Agaton

Villanueva³

et al. 2020

Int. J. Renew. Energy Dev.

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In developing countries, particularly in rural areas, long periods of power outages are experienced as the electricity grid is technically or economically unfeasible. As solar photovoltaic (PV) is the most potential and suitable source of renewable energy for these areas, this paper analyzes the economic viability of its integration in different types of residential buildings. Applying real optionsapproach under uncertainty in electricity prices, this study compares the attractiveness of adopting solar PV over continuing electricity from the grid focusing on various investment payment schemes including (i) full payment, (ii) distributed payment for 5 or 10 years without a down payment, and (iii) distributed payment for 5 or 10 years with 20% or 40% down payment. Applying the model with the case of the Philippines, the resultswith the full payment strategy obtain option values of USD 6888 for building type-I, USD 15349 for building type-II, USD 21204 for building type-III, USD 27870 for building type-IV, and USD 34251 for building type-V. These option values increase by 21.6% and 22.5% with distributed payment scheme to a 5- or 10-year period and increase by 5% and 13% for distributed payment with 40% and 20% down payment. These option values decrease with investments at later periods. Contrary to the conventional option valuation results of an optimal decision to wait, our findings show the otherwise as earlier investment reduces the risk of opportunity loss from delaying the adoption of solar PV. Among the payment schemes analyzed, the distribution of PV system cost in a 10-year installment periodwithout down payment shows to be the most optimal investment strategy which may encourage lower-income and risk-averse consumers whose decision to adopt solar PV is affected by cost barriers, economic status, and household income. The study suggests the government, particularly in developing countries, to support the integration of own-use solar PV in buildings through incentives and subsidies, as well as financial institutions to offer more affordable terms of payment that encourages low to medium income households to adopt solar PV.Further, this will not only augment the energy deficiency in these countries but also support the global aspirations of reducing greenhouse gas emissions and its adverse effects through gradually shifting to renewable sources of energy.

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Section: Summary Of Findings and Relation To Prior Studiesmentioning

confidence: 99%

Optimal Investment Strategy for Solar PV Integration in Residential Buildings: A Case Study in The Philippines

Guno¹,

Agaton

Villanueva³

et al. 2020

Int. J. Renew. Energy Dev.

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“…This paper is focused on the evaluation of a user-scale electric system, named Solar Home System (SHS), composed of a photovoltaic (PV) system, a battery energy storage system (BESS), a charge controller (CC), an inverter (In) and a backup power source (the grid or a backup generator) [1]. The installation of SHSs are motivated by different objectives, typically the electrification of remote rural areas [2,3,4,5] or the economic gains (self-consumption and feed-in remuneration) in grid connected installations [6,7]. Besides the economic viability of such installations, the increasing concerns about the environmental problems dealing with the traditional power systems, fueled by fossil fuels, has brought environmental sustainability analyses to be as important as the economic ones [8].…”

Section: Introductionmentioning

confidence: 99%

Environmental and economic optima of solar home systems design: A combined LCA and LCC approach

Rossi

Heleno

Basosi

et al. 2020

Science of The Total Environment

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This paper compares the economic and environmental optimal design of Solar Home Systems (SHSs) and explores the role of economic incentives (such as tariffs and technology costs) in approximating the two optima. To achieve that, we present a methodology for the environmental and economic evaluation of grid-connected SHSs: user-scale electric systems involving a photovoltaic (PV) power system and a battery energy storage system. The proposed methodology is based on a mixed integer linear programming (MILP) optimization, life cycle assessment and life cycle costing. This methodological framework is applied to a case study involving a typical SHS installation in Italy. The results of the environmental optimal design brought to the evaluation of a 3.25 kW PV assisted by 8.66 kWh of nickel cobalt manganese batteries, whereas the costs of the SHS are minimized by a small PV system (less than 1 kW). Results underline that the environmental optimal configurations rely on battery technologies, which entails a significant cost compared to the grid connection. In contrast, the economic optimal design solutions is less impactful than the grid mix both from an environmental and economic points of view. Thanks to a reduction of batteries and PV costs, the environmental impact of the economic optimal design is expected to decrease in the future.

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“…In some communities in South Asia, upper-and middle-class households that require more energy or are attempting to mitigate centralised grid power supply uncertainties are leading users of SHSs. In India, Nepal, and Pakistan, upper-and middle-class households were more likely to install SHSs than lower-class households [32][33][34], whereas in Bangladesh, relatively well-off households were better positioned to purchase higher capacity SHSs [35]. This was partly because they could afford the substantial down payment for the SHSs, while lower-class households could not meet this requirement [36].…”

Section: Social Differentiation and Adoption Of Shssmentioning

confidence: 99%

Solar Home Systems in South Asia: Examining Adoption, Energy Consumption, and Social Practices

Ojöng

2021

Sustainability

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Renewable electricity generation from solar energy has rapidly increased in South Asia. This paper presents a systematic review of 79 scholarly papers on the topic of solar home system adoption, energy consumption, and social practices in South Asia. Using an intersectionality lens, the paper demonstrates that various categories of difference, such as gender, age, class, and ethnicity, intersect and shape the adoption of this technology in South Asia. Utilizing a social practice theory lens, the paper shows that solar home systems shape the spatial and temporal arrangements and practices of members of households that have adopted the technology, as well as their counterparts who have not. This technology has a practical but also symbolic function; the symbolic function and social meaning are derived from the economic and socio-cultural contexts. As this renewable energy technology is embedded in economic and socio-cultural contexts, people reconfigure it in creative ways to meet their everyday energy needs. The paper identifies research gaps and suggests future research agendas.

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Determinants of microfinance facility for installing solar home system (SHS) in rural Bangladesh

Cited by 50 publications

References 35 publications

Optimal Investment Strategy for Solar PV Integration in Residential Buildings: A Case Study in The Philippines

Optimal Investment Strategy for Solar PV Integration in Residential Buildings: A Case Study in The Philippines

Environmental and economic optima of solar home systems design: A combined LCA and LCC approach

Solar Home Systems in South Asia: Examining Adoption, Energy Consumption, and Social Practices

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