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A First Step up the Energy Ladder? Low Cost Solar Kits and Household’s Welfare in Rural Rwanda

Sources:

Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor

Authors:

Michael Grimm

Anicet Munyehirwe

Jorg Peters

Maximiliane Sievert

Date:

1 October 2014

Pico-photovoltaic (PV) kits have become a lower-cost alternative to investment intensive grid electrification. Using a randomized controlled trial, the authors examine uptake and impacts of a simple pico-PV kit that barely exceeds the benchmark of what the UN considers modern energy. They find significant effects on households’ budget, productivity and convenience. Despite these effects, the data show that adoption will be impeded by affordability, suggesting that policy has to consider subsidized dissemination strategies.