Impacts of public solar PV electrification on rural micro-enterprises: The case of Ghana

Micro-enterprises are a key component in rural enterprise creation and income generation. In rural areas far removed from grid-electricity, public solar photovoltaic (PV) electrification projects have served useful purposes by contributing to improve the economic activities of micro-enterprises beyond daylight hours. Through fee-for-service approach some rural micro-enterprises in Ghana were provided with access to solar PV systems to enhance their output. It is expected that the effect of solar PV electrification on enterprise output would be of research interest. However, the relationship is under-researched. Hence, there is lack of data particularly quantitative ones to show the benefits that can be derived from the sustainable use of solar PV to electrifiy rural micro-enterprises. Using systematic sampling and developing a set of enterprise-level indicators, micro-enterprises with and without solar PV were surveyed in eight rural communities in five regions of Ghana. The results revealed that the cost avoided by using solar PV in the enterprises instead of kerosene lanterns was US$1-5/month. The results established a statistically significant association between solar PV lighting and additional income after sunset of US$5-12/day in grocery (merchandise) enterprises. Without the external lighting of solar-electrified enterprises, the businesses of about two night vendors were affected. Further to the impacts on income and cost savings the study discussed affordability, factors preventing the extension of working hours after sunset and sustainability issues. (C) 2010 International Energy Initiative. Published by Elsevier Inc. All rights reserved.