Solar home systems in Ethiopia: Sustainability challenges and policy directions

Abstract The current energy access in Ethiopia stands at 44%, where 33% is provided through grid connections and 11% through off grid solutions. In order to increase the electricity access, the Ethiopian government has launched National Electrification Program laying out the country’s ambition towards universal access by 2025 through a combination of 65% grid-connected and 35% off-grid energy systems such as the solar home systems (SHS). With the government’s ambitious plans and increased market diffusion of SHS in the rural communities of Ethiopia, the country requires evidence based comprehensive data on the key challenges of SHS in order to maintain sustainability of the systems. This paper aims to explore the key sustainability challenges associated with the utilization of SHS and provides recommendations to overcome such challenges. This has been achieved through a field questionnaire survey. The study found out that high initial investment cost, lack of local manufacturing, lack of full awareness of the operation, frequent failure of the systems, lack of sufficient maintenance experts, high maintenance and installation costs, lack of spare parts are considered to be the key challenges that are affecting the market diffusion and sustainability of the systems. To overcome these challenges, evidence based policies are recommended.