Socio-economic impact of solar home systems in rural Sri Lanka: a case-study

Abstract

The use of solar photovoltaic systems of 25 Wp to 50 Wp (frequently called solar home systems, or SHSs) has been spreading fast in the rural areas of Sri Lanka as a source of energy used for domestic lighting, mainly because of the financial incentives provided by the donor agencies and aggressive marketing strategies of the SHS dealers in rural areas. This paper presents the outcome and the analysis of a study conducted with the objective of investigating the social, economic and environmental impact of SHSs in rural Sri Lanka. The study involved conducting a survey of 125 households having SHSs, in the Uva province of Sri Lanka, through personal visits. It was evident that the households are extremely satisfied with the technology that has replaced their kerosene lamps, which had been providing household lighting requirements. The quality of life, in terms of activities such as longer study hours of children, longer TV watching hours for the family and lessening the risk of fatal kerosene lamp accidents, has improved with the introduction of the SHSs. It is concluded that the large-scale penetration of solar home systems in Sri Lanka has helped rural communities both in terms of improved socio-economic conditions and reduced adverse environmental impacts, contrary to the belief that the financial burden of such systems imposed on the families outweighs the benefits. But when comparing the benefits of SHSs against the extension of the national grid, the country needs to seriously examine its options for the areas currently targeted by SHS dealers. 1. Introduction Around 60 % of Sri Lanka’s national primary energy supply comes from renewable sources of energy; biomass and large hydro plants. Attempts have been made to promote solar photovoltaics (PV) for rural lighting, wind energy for lift irrigation, agricultural residues for industrial heating, biogas generators for domestic use and solar water heaters for industry, hotels and domestic use, but their contributions have still remained relatively small [ECF, 2003]. The Ceylon Electricity Board, the state-owned utility responsible for over 80 % of electricity generation and transmission and over 90 % of distribution, started popularizing solar PV for rural domestic lighting in the early 1980s by providing solar PV systems at a subsidized rate to rural consumers. Recently the private sector has taken the initiative and been successful in reaching rural households on a large scale for supplying solar home systems (SHSs) of modular sizes, mainly 24 Wp and 50 Wp [Gunaratne, 1994]. This rapid