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

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.

► SHS is financially viable and sustainable.
► SHS could generate and promote rural green employment.
► Kerosene price/subsidy is highly sensitive in determining financial and eco-efficiency of the SHS.