Adoption of solar energy technology among Households: Evidence from Ethiopia

Abstract

The global demand for improved energy is steadily rising, yet access and consumption remain lowest in developing countries. Consequently, adopting renewable energy technologies is crucial to meet the increasing energy needs. However, limited research has been conducted on factors influencing households' decisions to adopt renewable energy technologies in Ethiopia. The study aims to examine the determinants of households' adoption of solar energy technology using the binary logit model. To achieve the objective, the study applied cross-sectional data from 347 randomly selected households within six kebeles in Aysaita district. The findings indicate that household income, educational level, perception of solar energy, frequency of extension contact, and access to training significantly and positively influenced the adoption of solar energy technology. Conversely, sex and age of the household head significantly and negatively affected the adoption of solar energy technology. Therefore, the expansion of income-generating opportunities targeting households is highly suggested. Furthermore, efforts to raise awareness about the benefits of solar energy, strengthen institutional services, and expand educational and household training centers should get special attention. • The study aims to examine the determinants of solar energy technology adoption among rural households. • Approximately 27.95 % of sample households adopted solar energy technology, while about 99.14 % are using traditional sources. • Sex, age, perception, and total income had highly significant impacts on the adoption of solar energy. • Policies targeting rural households on increasing income-generating activities and the expansion of institutional services, and educational centers are highly needed.