Financial constraints still a major obstacle

Financial constraints remain a major obstacle in the use of off-grid solar power in the country. A recent survey by Daily Samakal-CPD found that 43 percent of the customers of Infrastructure Development Company Limited (IDCOL) solar home system users have taken connections through loan-based installments. Although their monthly installments average Tk 600, 13 percent of customers are still struggling to meet the installment payment pressure.

The survey also revealed that the average cost of each IDCOL system is about Tk 9,000, while the TR/KAVITA programme systems have been completed at a relatively low cost - on average under Tk 1,000. However, the average cost of private rooftop solar installations stands at more than Tk 23,000.

According to experts, this cost structure is discouraging many rural and low-income families from adopting solar home systems. As a result, although the alternative energy system has potential, limited financial capacity is hindering its expansion. A large portion of the users who participated in the survey said that they are not interested in investing again unless installment financing is easy or the price of the package is further reduced.

However, the survey revealed a positive aspect that people are very interested in low-cost off-grid solar connections. This interest rate is highest among TR/KABITA programme participants, at 84 percent. About 80 percent of rooftop users and 71 percent of EDCOL users expressed interest in adopting advanced and affordable solar packages in the future. Researchers believe that these results indicate the growing confidence and potential market for solar energy among rural and marginalised communities.

The survey also said that users are more interested in relatively large packages instead of systems limited to basic lighting. Since such packages allow for running essential household appliances including lights and fans, it is more consistent with the real electricity needs of the family. Experts believe that if such advanced systems are made available at affordable prices, the use of solar home systems will increase significantly, in addition to grid electricity.

Policymakers say it is important to bring solar packages within the income range of the common people by introducing easy installment facilities, subsidies and low-interest loans. Along with ensuring quality equipment and after-sales service, solar energy can play a greater role as a supporting force in the rural electricity system.