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The impact of off-grid solar home systems in Kenya on energy consumption and expenditures

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  • Wagner, Natascha
  • Rieger, Matthias
  • Bedi, Arjun S.
  • Vermeulen, Jurgen
  • Demena, Binyam Afewerk

Abstract

This paper assesses the impact of solar home systems (SHS) on energy consumption and energy-related expenditures among Kenyan households. Based on a pipeline comparison approach of more than a thousand households, we find that access to a SHS leads to a net increase of 24 to 36 min in daily lighting use due to a 3 h increase in the use of LED lamps, accompanied by a reduction in the use of “dirty” lamps. We also find a one litre reduction in the monthly use of kerosene for lighting. These changes in energy use along with a decline in the cost of charging mobile phones leads to a reduction in overall monthly expenditure of KSh 193 (about EUR 1.60). For the most popular SHS, these economic effects translate into a payback period of about six years. In addition to the economic benefits, we find small positive environmental effects, increased satisfaction from better quality lighting and an increase in time spent watching TV. Setting the costs against the combined benefits of SHS suggests a positive payoff for this particular off-grid electricity option and a viable way forward in providing off-grid energy solutions with a wide range of functionalities in developing countries.

Suggested Citation

  • Wagner, Natascha & Rieger, Matthias & Bedi, Arjun S. & Vermeulen, Jurgen & Demena, Binyam Afewerk, 2021. "The impact of off-grid solar home systems in Kenya on energy consumption and expenditures," Energy Economics, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:eneeco:v:99:y:2021:i:c:s0140988321002206
    DOI: 10.1016/j.eneco.2021.105314
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    Cited by:

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    3. Nathanael Ojong, 2022. "Fostering Human Wellbeing in Africa through Solar Home Systems: A Systematic and a Critical Review," Sustainability, MDPI, vol. 14(14), pages 1-15, July.
    4. Best, Rohan, 2023. "Assets power solar and battery uptake in Kenya," Energy Economics, Elsevier, vol. 123(C).
    5. Onu, Uchenna Godswill & Silva, Giuseppe Scabello & Zambroni de Souza, Antonio Carlos & Bonatto, Benedito Donizeti & Ferreira da Costa, Vinicius Braga, 2022. "Integrated design of photovoltaic power generation plant with pumped hydro storage system and irrigation facility at the Uhuelem-Amoncha African community," Renewable Energy, Elsevier, vol. 198(C), pages 1021-1031.
    6. Subedi, Mukti Nath & Bharadwaj, Bishal & Rafiq, Shuddhasattwa, 2023. "Who benefits from the decentralised energy system (DES)? Evidence from Nepal’s micro-hydropower (MHP)," Energy Economics, Elsevier, vol. 120(C).
    7. Richard S. J. Tol, 2023. "Navigating the energy trilemma during geopolitical and environmental crises," Papers 2301.07671, arXiv.org.
    8. Beyene, Abebe D. & Mekonnen, Alemu & Jeuland, Marc & Czakon, Sebastian, 2024. "Socioeconomic impacts of solar home systems in rural Ethiopia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    9. Abigail Opokua Asare & Laura Schuerer, 2024. "Incidence of Carbon Pricing in Tanzania: Using Revenues to Empower Low-Income Households with Renewable Energy," Working Papers V-446-24, University of Oldenburg, Department of Economics, revised Jul 2024.
    10. Mukisa, Nicholas & Manitisa, Mele Sikimeti & Nduhuura, Paul & Tugume, Erick & Chalwe, Chanda Karen, 2022. "Solar home systems adoption in Sub-Saharan African countries: Household economic and environmental benefits assessment," Renewable Energy, Elsevier, vol. 189(C), pages 836-852.

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