Economic viability of solar home systems: Case study of Bangladesh

Bangladesh is richly endowed with solar energy. Solar Photovoltaic (PV) system seems to be an appropriate form of renewable energy despite the monsoon type of climate in Bangladesh. The most attractive use of solar home system (SHS) in Bangladesh is the lighting system. People in rural Bangladesh predominantly use kerosene oil based lamps for illuminating their homes at night. Dry cell batteries are used for radio and gradually car batteries are becoming popular for running TV near grid areas where the charging facilities are available. The cost of kerosene and charging cost of battery are quite high and solar home system can compete with them in this particular field. Six cases were analyzed to find out the economic sustainability of the solar home systems at selected villages in Gazipur district, Bangladesh during October 2004–December 2004 and also questionnaire survey method was followed to collect data. This study reveals that the solar home system is financially attractive for small rural business and household lighting with entertainment. Only for household lighting purpose the system is not financially and economically viable without considering social benefits.