Best practices for photovoltaic household electrification programs logo

This report identifies an important economic niche for photovoltaic (PV) systems within rural electrification programs. Chapter 1 sketches the evolution of household photovoltaic systems. Chapter 2 describes solar home systems, their costs, consumer perceptions and the potential niche for household PV in rural electrification. Chapter 3 analyzes the economics of solar home systems vis- -vis grid and off-grid options. Chapter 4 outlines financial constraints to solar home system diffusion. Chapter 5 examines vehicles for program implementation. Chapter 6 sets out financing and cost recovery requirements. Chapter 7 focuses on technical standards. Chapter 8 lists the main conclusions and recommendations. Annex 1 summerizes the four case studies of household experiences in Indonesia, Sri Lanka, the Philippines, and the Dominican Republic. Annex 2 details the economic analysis and assumptions used to define the economic niche for solar home systems in rural electrification. It also examines the impact of productive loads and load growth on solar homes system competitiveness. The main conclusion of the report is that PV systems are a viable complement to grid-based energy service delivery and that within the rural electrification framework such systems can find a cost -effective niche and sustainable market.

Publisher: World Bank

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