A comparative evaluation of household preferences for solar photovoltaic standalone and mini-grid system: An empirical study in a costal village of Indian Sundarban

Solar PhotoVoltaic (SPV) based systems have been widely accepted technology for rural electrification in developing countries. The standalone SPV home lighting system has increasingly been popular among rural households, while SPV mini-grid supply system is being promoted for rural electrification schemes. This study uses data from household survey to explore the impact of household characteristics on the preference for electrical energy from SPV systems. Econometric evidence shows heterogeneity in behavioural pattern for these two SPV systems. The flexibility in use and cost of systems might explain this difference. Household characteristics such as monthly household income, household size, occupational status of household head, number of room and type of house significantly influence household’s decision for SPV standalone home lighting systems. For SPV mini-grid supply household’s income and monthly expenditure on kerosene are significant predictors. The result reported in this paper might be a valuable input for policy makers to frame right policy mix with regard to provide subsidy on rural electrification programmes.