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ID: 167015

Determinants of microfinance facility for installing solar home system (SHS) in rural Bangladesh / Khan, Tahsina

Khan, Tahsina	Journal Article
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Summary/Abstract

Access to electricity in rural areas of the developing parts of the world is yet to reach a minimum satisfactory level. Bangladesh is no different, and hence widespread dissemination of solar home system (SHS) is a suitable vehicle to ensure greater access to electricity in remote rural areas of the country. A substantial portion of four million installed SHSs in Bangladesh has availed microcredit provided by various microfinance institutions. However, what determines the users' preference towards microcredit in installing SHS on the rooftop is yet to be answered. This research aims at analyzing the determinants of microfinance for installing SHS in rural Bangladesh. This research employed binary logistic regression to analyze the factors that affect selection of different mode of purchase: upfront payment or installment purchase. It identified a set of independent variables based on existing literature in order to investigate their influence on households’ choice between cash payment and installment purchase. The research found that more than 63% of the rural households in the study areas used SHS financed through microcredit. Level of education, location, family size and occupation affects choice of purchase mode. Logistic regression analysis showed that age, location and size of SHS affect the likelihoods of choosing upfront payment or installment purchase.

Key Words

Bangladesh ; Microcredit ; Solar Home System (SHS)

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ID: 126510

Solar Home System (SHS) in rural Bangladesh: ornamentation or fact of development? / Rahman, Syed M; Ahmad, Mokbul M

Rahman, Syed M	Journal Article
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2013.

Summary/Abstract

Energy requirement has been growing every day due to higher population growth, and consequently higher consumption. About one third of rural households of Bangladesh are connected to the grid. To meet the gap, solar energy has been treated as a feasible option for people in rural areas where grid connections are not available. A good number of organizations have been working together to provide Solar Home System (SHS) in rural Bangladesh. There is little evidence that supply of small scale energy supports significant rural development. This paper aims at understanding how increased energy access through SHS in rural Bangladesh contributes towards rural development. Recent published literatures on SHS in Bangladesh have been studied to get insight into the technical, financial, and operational as well as economic and social issues. Later the findings have been critically analyzed with respect to selected indicators of rural development. The study identified that increased access to energy through SHS in rural Bangladesh provides mostly recreational and leisure benefits with the so called 'social status'; income generation is negligible while support for education is average.

Key Words

Bangladesh ; Rural Development ; Solar Home System (SHS)

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