IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v36y2011i8p4821-4827.html
   My bibliography  Save this article

Financial viability and eco-efficiency of the solar home systems (SHS) in Bangladesh

Author

Listed:
  • Chakrabarty, Sayan
  • Islam, Tawhidul

Abstract

To analyze financial viability as well as eco-efficiency of the solar home systems in Bangladesh six case studies are carried out in some selected villages of Chhatak upazila in Bangladesh where NGOs like Grameen Shakti and BRAC are delivering and servicing solar home systems. Financial viability of the SHS is measured by comparing prior expenditure (before implementing SHS) for kerosene, automobile battery and other conventional sources. Eco-efficiency refers to an estimator that seeks to maximize the effectiveness of financial viability while counting their costs on the environment. The financial viability and eco-efficiency for six different cases of SHS are calculated and compared. This provides information about the relative performance of the product in six different situations. Solar electrification results a number of income generating new green employments for the rural community in Bangladesh. Although financial viability of SHS is sensitive to kerosene subsidy, this study reveals that the SHS is financially more attractable when it is used for small income generating activities other than used only for lighting purpose. However, almost in all cases this technology is indispensable for improving environmental standard and eco-efficiency of the rural community.

Suggested Citation

  • Chakrabarty, Sayan & Islam, Tawhidul, 2011. "Financial viability and eco-efficiency of the solar home systems (SHS) in Bangladesh," Energy, Elsevier, vol. 36(8), pages 4821-4827.
    • Handle: RePEc:eee:energy:v:36:y:2011:i:8:p:4821-4827
    DOI: 10.1016/j.energy.2011.05.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544211003410
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2011.05.016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rehman, Shafiqur & Bader, Maher A. & Al-Moallem, Said A., 2007. "Cost of solar energy generated using PV panels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(8), pages 1843-1857, October.
    2. Chaurey, A. & Kandpal, T.C., 2009. "Carbon abatement potential of solar home systems in India and their cost reduction due to carbon finance," Energy Policy, Elsevier, vol. 37(1), pages 115-125, January.
    3. Mondal, Md. Alam Hossain & Denich, Manfred & Vlek, Paul L.G., 2010. "The future choice of technologies and co-benefits of CO2 emission reduction in Bangladesh power sector," Energy, Elsevier, vol. 35(12), pages 4902-4909.
    4. Usón, Alfonso Aranda & Capilla, Antonio Valero & Bribián, Ignacio Zabalza & Scarpellini, Sabina & Sastresa, Eva Llera, 2011. "Energy efficiency in transport and mobility from an eco-efficiency viewpoint," Energy, Elsevier, vol. 36(4), pages 1916-1923.
    5. Gössling, Stefan & Peeters, Paul & Ceron, Jean-Paul & Dubois, Ghislain & Patterson, Trista & Richardson, Robert B., 2005. "The eco-efficiency of tourism," Ecological Economics, Elsevier, vol. 54(4), pages 417-434, September.
    6. Hossain Mondal, Md. Alam, 2010. "Economic viability of solar home systems: Case study of Bangladesh," Renewable Energy, Elsevier, vol. 35(6), pages 1125-1129.
    7. Purohit, Pallav, 2009. "CO2 emissions mitigation potential of solar home systems under clean development mechanism in India," Energy, Elsevier, vol. 34(8), pages 1014-1023.
    8. K Hossain, A & Badr, O, 2007. "Prospects of renewable energy utilisation for electricity generation in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(8), pages 1617-1649, October.
    9. Posorski, R & Bussmann, M & Menke, C, 2003. "Does the use of Solar Home Systems (SHS) contribute to climate protection?," Renewable Energy, Elsevier, vol. 28(7), pages 1061-1080.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ahammed, Faisal & Azeem, Abdullahil, 2013. "Selection of the most appropriate package of Solar Home System using Analytic Hierarchy Process model in rural areas of Bangladesh," Renewable Energy, Elsevier, vol. 55(C), pages 6-11.
    2. Khan, Tahsina & Khanam, Shamsun Nahar & Rahman, Md Habibur & Rahman, Syed Mahbubur, 2019. "Determinants of microfinance facility for installing solar home system (SHS) in rural Bangladesh," Energy Policy, Elsevier, vol. 132(C), pages 299-308.
    3. Ghafoor, Abdul & Munir, Anjum, 2015. "Design and economics analysis of an off-grid PV system for household electrification," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 496-502.
    4. Yi, Hongtao, 2014. "Green businesses in a clean energy economy: Analyzing drivers of green business growth in U.S. states," Energy, Elsevier, vol. 68(C), pages 922-929.
    5. Komatsu, Satoru & Kaneko, Shinji & Ghosh, Partha Pratim & Morinaga, Akane, 2013. "Determinants of user satisfaction with solar home systems in rural Bangladesh," Energy, Elsevier, vol. 61(C), pages 52-58.
    6. Chakrabarty, Sayan & Boksh, F.I.M. Muktadir & Chakraborty, Arpita, 2013. "Economic viability of biogas and green self-employment opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 757-766.
    7. Halder, P.K., 2016. "Potential and economic feasibility of solar home systems implementation in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 568-576.
    8. Md Asaduzzaman Shoeb & GM. Shafiullah, 2018. "Renewable Energy Integrated Islanded Microgrid for Sustainable Irrigation—A Bangladesh Perspective," Energies, MDPI, vol. 11(5), pages 1-19, May.
    9. Nathanael Ojong, 2021. "Solar Home Systems in South Asia: Examining Adoption, Energy Consumption, and Social Practices," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    10. Pranpreya Sriwannawita & Staffan Laestadiusb, 2015. "Determinants of the Diffusion of Solar Home Systems: Case Study among Low-Income Inhabitants in Bangladesh," Energy & Environment, , vol. 26(5), pages 803-816, September.
    11. Xavier Lemaire, 2018. "Solar home systems and solar lanterns in rural areas of the Global South: What impact?," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 7(5), September.
    12. Bisaga, Iwona & Puźniak-Holford, Nathan & Grealish, Ashley & Baker-Brian, Christopher & Parikh, Priti, 2017. "Scalable off-grid energy services enabled by IoT: A case study of BBOXX SMART Solar," Energy Policy, Elsevier, vol. 109(C), pages 199-207.
    13. Paleta, Rita & Pina, André & Silva, Carlos A., 2012. "Remote Autonomous Energy Systems Project: Towards sustainability in developing countries," Energy, Elsevier, vol. 48(1), pages 431-439.
    14. Rahman, Syed M. & Ahmad, Mokbul M., 2013. "Solar Home System (SHS) in rural Bangladesh: Ornamentation or fact of development?," Energy Policy, Elsevier, vol. 63(C), pages 348-354.
    15. Roche, O.M. & Blanchard, R.E., 2018. "Design of a solar energy centre for providing lighting and income-generating activities for off-grid rural communities in Kenya," Renewable Energy, Elsevier, vol. 118(C), pages 685-694.
    16. Mishra, Pulak & Behera, Bhagirath, 2016. "Socio-economic and environmental implications of solar electrification: Experience of rural Odisha," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 953-964.
    17. Thomas, P.J.M. & Sandwell, P. & Williamson, S.J. & Harper, P.W., 2021. "A PESTLE analysis of solar home systems in refugee camps in Rwanda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    18. Owusu-Sekyere, Enoch & Cissé, Fatoumata Nankoto & Achandi, Esther Leah, 2024. "Impact of solar energy subscription on the market performance of micro, small & medium enterprises in Nigeria," Energy Policy, Elsevier, vol. 188(C).
    19. Ahmed, Monir Uddin & Nurul Hossain, A.K.M. & Hasanuzzaman, Syed, 2015. "Exploring the depth of energy penetration in economic advancement: Perspective of Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 1033-1047.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mollik, Sazib & Rashid, M.M. & Hasanuzzaman, M. & Karim, M.E. & Hosenuzzaman, M., 2016. "Prospects, progress, policies, and effects of rural electrification in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 553-567.
    2. Komatsu, Satoru & Kaneko, Shinji & Ghosh, Partha Pratim & Morinaga, Akane, 2013. "Determinants of user satisfaction with solar home systems in rural Bangladesh," Energy, Elsevier, vol. 61(C), pages 52-58.
    3. Alam Hossain Mondal, Md. & Sadrul Islam, A.K.M., 2011. "Potential and viability of grid-connected solar PV system in Bangladesh," Renewable Energy, Elsevier, vol. 36(6), pages 1869-1874.
    4. Chaurey, Akanksha & Kandpal, Tara Chandra, 2010. "Assessment and evaluation of PV based decentralized rural electrification: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2266-2278, October.
    5. Mandelli, Stefano & Barbieri, Jacopo & Mereu, Riccardo & Colombo, Emanuela, 2016. "Off-grid systems for rural electrification in developing countries: Definitions, classification and a comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1621-1646.
    6. Halder, P.K., 2016. "Potential and economic feasibility of solar home systems implementation in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 568-576.
    7. Pode, Ramchandra, 2013. "Financing LED solar home systems in developing countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 596-629.
    8. Mondal, Md. Alam Hossain & Denich, Manfred, 2010. "Assessment of renewable energy resources potential for electricity generation in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2401-2413, October.
    9. Md. Monirul Islam Chowdhury & Syed Masiur Rahman & Ismaila Rimi Abubakar & Yusuf A. Aina & Md. Arif Hasan & A. N. Khondaker, 2021. "A review of policies and initiatives for climate change mitigation and environmental sustainability in Bangladesh," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(2), pages 1133-1161, February.
    10. Islam, Md. Tasbirul & Shahir, S.A. & Uddin, T.M. Iftakhar & Saifullah, A.Z.A, 2014. "Current energy scenario and future prospect of renewable energy in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 1074-1088.
    11. Halder, P.K. & Paul, N. & Joardder, M.U.H. & Khan, M.Z.H. & Sarker, M., 2016. "Feasibility analysis of implementing anaerobic digestion as a potential energy source in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 124-134.
    12. Parida, Bhubaneswari & Iniyan, S. & Goic, Ranko, 2011. "A review of solar photovoltaic technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(3), pages 1625-1636, April.
    13. Singh, Shobhana & Kumar, Subodh, 2013. "Solar drying for different test conditions: Proposed framework for estimation of specific energy consumption and CO2 emissions mitigation," Energy, Elsevier, vol. 51(C), pages 27-36.
    14. Fabio Iraldo & Benedetta Nucci, 2016. "Proactive environmental management in hotels: What difference does it make?," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2016(2), pages 81-106.
    15. Villanthenkodath, Muhammed Ashiq & Mahalik, Mantu Kumar, 2021. "Does economic growth respond to electricity consumption asymmetrically in Bangladesh? The implication for environmental sustainability," Energy, Elsevier, vol. 233(C).
    16. Bhawani Ghimire & Umaporn Muneenam & Kuaanan Techato, 2024. "Preference on Renewal Energy by Operators of Tourist Standard Hotels in Kathmandu, Nepal," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 277-286, March.
    17. Huda, A.S.N. & Mekhilef, S. & Ahsan, A., 2014. "Biomass energy in Bangladesh: Current status and prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 504-517.
    18. Toledo, Olga Moraes & Oliveira Filho, Delly & Diniz, Antônia Sônia Alves Cardoso, 2010. "Distributed photovoltaic generation and energy storage systems: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 506-511, January.
    19. Li, Danny H.W. & Lam, Tony N.T. & Chan, Wilco W.H. & Mak, Ada H.L., 2009. "Energy and cost analysis of semi-transparent photovoltaic in office buildings," Applied Energy, Elsevier, vol. 86(5), pages 722-729, May.
    20. Rômulo de Oliveira Azevêdo & Paulo Rotela Junior & Luiz Célio Souza Rocha & Gianfranco Chicco & Giancarlo Aquila & Rogério Santana Peruchi, 2020. "Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments," Sustainability, MDPI, vol. 12(17), pages 1-40, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:36:y:2011:i:8:p:4821-4827. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.