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Economic Viability and Socio-Environmental Impacts of Solar Home Systems for Off-Grid Rural Electrification in Bangladesh

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  • Swati Anindita Sarker

    (School of Economics and Management, University of Chinese Academy of Sciences, Haidian District, Beijing 100190, China
    Department of Agricultural Economics, EXIM Bank Agricultural University Bangladesh, Chapainawabganj 6300, Bangladesh)

  • Shouyang Wang

    (School of Economics and Management, University of Chinese Academy of Sciences, Haidian District, Beijing 100190, China)

  • K M Mehedi Adnan

    (College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China
    Department of Agricultural Finance & Banking, Sylhet Agricultural University, Sylhet 3100, Bangladesh)

  • Muhammad Khalid Anser

    (School of Public Administration, Xi’an University of Architecture and Technology, Xi’an 710055, China)

  • Zeraibi Ayoub

    (School of Economics and Finance, Xi’an Jiao-Tong University, Xi’an 710049, China)

  • Thu Hau Ho

    (School of Management, Xi’an Jiao-Tong University, Xi’an 710049, China)

  • Riffat Ara Zannat Tama

    (College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China)

  • Anna Trunina

    (School of Economics and Management, University of Chinese Academy of Sciences, Haidian District, Beijing 100190, China)

  • Md Mahmudul Hoque

    (Institute of Development Studies (IDS), University of Sussex, UK BN1 9RH)

Abstract

This study conducted a questionnaire-led survey to explore the financial feasibility and socio-environmental impacts of stand-alone solar home systems (SHS) through stratified random sampling. Based on the above consideration, fifteen cases of studies of various watt peak (Wp) capacities have been investigated to evaluate the economic viability of solar home systems. The results revealed that most of the cases have positive net present value (NPV) and low payback periods, with an internal rate of return (IRR) value ranging from 16% to 131%, which signifies a high rate of investment exchange. Solar home systems are economically profitable for micro-enterprises and households with low-income generation activities as opposed to the households using it only for lighting. The study found that solar home systems with a capacity above 30 Wp are the most economically viable option, which can also avoid 6.15 to 7.34 tonnes of CO 2 emissions during the 20 years of life-cycle, while providing different applications including lighting, recreation, information, health, and economic benefits.

Suggested Citation

  • Swati Anindita Sarker & Shouyang Wang & K M Mehedi Adnan & Muhammad Khalid Anser & Zeraibi Ayoub & Thu Hau Ho & Riffat Ara Zannat Tama & Anna Trunina & Md Mahmudul Hoque, 2020. "Economic Viability and Socio-Environmental Impacts of Solar Home Systems for Off-Grid Rural Electrification in Bangladesh," Energies, MDPI, vol. 13(3), pages 1-15, February.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:3:p:679-:d:316693
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    References listed on IDEAS

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