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 lighting. It is important to understand the demand and supply-side factors affecting adoption of technology. For this purpose, this study investigates the factors influencing household adoption of the solar home system (SHS).Methodology: The data used for the econometric model was collected from randomly selected 228 solar home system adopter and 143 non- adopter households in Baso Liben district, Amhara regional state of Ethiopia. The logistic regression model was applied to examine the factors affecting households’ willingness to adopt SHS. Results: The finding of this study shows significant variation in many of the socioeconomic and demographic characteristics between adopters and non-adopters. The result of the binary logistic regression model indicated that as income of a household increase, their propensity to adopt solar home system also increases. Likewise, participation in off-farm income activities, house type, educational status of the head, training access, media access, and prior knowledge of the technology positively correlated with the probability of adoption. On the other hand, the gender of the head (being male) and access to electricity were negatively associated with the adoption of SHS. Conclusion: Therefore, 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.