Knowledge and adoption of solar home systems in rural Nicaragua

Solar home systems (SHSs) are a promising electrification option for many households in the developing world. In most countries SHSs are at an early stage of dissemination, and thus face a hurdle common to many emerging alternative energy technologies: many people do not know enough about them to decide whether to adopt one or not. This study uses survey data collected in Nicaragua to investigate characteristics that predict the knowledge and adoption of SHSs among the rural population. First, a series of probit models is used to model the determinants of four measures of SHS knowledge. Next, a biprobit model with sample selection is employed to investigate the factors that predict SHS adoption, conditional on having sufficient knowledge to make an adoption decision. Comparison of the biprobit formulation to a standard probit model of adoption affirms its value. This study identifies multiple determinants of SHS knowledge and adoption, offers several practical recommendations to project planners, and provides an analytical framework for future work in this policy-relevant area.

Research highlights
► Solar home systems (SHSs) are a promising rural electrification option in the developing world.
► As with many emerging renewable energy technologies, lack of knowledge may limit SHS adoption.
► We use probit models to investigate the determinants of SHS knowledge in rural Nicaragua.
► We also employ a biprobit model linking the determinants of knowledge and adoption.
► We find that in analyzing SHS adoption, accounting for sample selection based on knowledge is key.