Surge in Solar-Powered Homes
ebook ∣ Experience in Off-Grid Rural Bangladesh · Directions in Development
By Shahidur R. Khandker

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Bangladesh has the worldâs fastest growing, off-grid solar home system (SHS) coverage. The number of SHS
installations has risen phenomenallyâfrom a five-year target of 50,000 in 2003 to 50,000 a month a decade
later. By early 2014, installations totaled more than 3 million. Even so, this figure represents just 10 percent of
the countryâs off-grid households, suggesting ample room for continued program expansion. Surge in Solar-Powered Homes: Experience in Off-Grid Rural Bangladesh assesses the countryâs remarkable
growth in SHS, its support schemes, and welfare impacts for rural households. Drawing on both large-scale
household survey and institutional data, the bookâs authors examine the effectiveness of SHS technology in
improving rural peopleâs quality of life and the program delivery and financing mechanisms, including partial
subsidies, currently in place, administered by the Infrastructure Development Company Limited (IDCOL). The bookâs findings clearly demonstrate that the welfare benefits of SHS adoption far outweigh the social
cost of the subsidy. The benefits of lighting aloneâreplacing polluting kerosene lamps with solar-powered
electric lightingâresult in significant cost savings and income gains for adopter households. The findings
confirm that SHS increases childrenâs study time, householdsâ sense of security, and womenâs empowerment.
Within the current market incentive structure, there is tremendous scope for broadening the rural market
reach. But the high upfront cost of purchasing a SHS at current market prices is a barrier to future sales,
suggesting the continued need for IDCOLâs well-targeted subsidized operation. Bangladeshâs highly successful SHS program leveraged a unique combination of geographical, institutional,
and socioeconomic factors; however, certain elements could be easily replicated elsewhere. This book
will be of interest to policy makers struggling with the task of increasing rural peopleâs access to electricity,
particularly in poor or remote areas where national grid extension is uneconomical. Development
practitioners can also benefit from learning about the welfare impacts of SHS on rural households and
market-based implementation models designed to meet rural householdsâ basic electricity needs.