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Improvement of Farmers’ Livelihood Through Solar Home System: Empirical Evidences from Four Districts in Bangladesh

Md. Saidur Rahman
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

Nowrin Islam Toma
Agricultural Engineering Division, Bangladesh Institution of Nuclear Agriculture, Mymensingh, Bangladesh

A. K. M. Abdullah Al-Amin
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

Md. Aktarul Islam
Agricultural Engineering Division, Bangladesh Institution of Nuclear Agriculture, Mymensingh, Bangladesh

Abstract/ Executive Summary:

The environment friendly renewable energy (i.e., solar energy) is expanding day by day to mitigate the demand of electricity in the remote areas. Considering the significance of the solar energy, the present study was conducted to explore the core economics of using solar household system and its impact on rural livelihoods and assessing the welfare aspects of such adoption. The survey was conducted in 240 households from February to April of 2018 in four upazilas, namely Madarganj, Roumari, Fulchori and Charvadrason of Jamalpur, Kurigram, Gaibandha and Faridpur districts, respectively. A combination of descriptive and statistical techniques was applied to analyze the data. The results revealed that the age groups of 30-45 years had the maximum frequency of 52.08%. About 70.42% of the household heads were below S.S.C level and 14.16% were S.S.C passed. Among the household heads, about 60.83% were farmers and 8.33% were in other agriculture related occupation. The cash inflow of existing solar panel was Tk. 3520.00 and average salvage value was Tk. 4119.58. Assuming 12% discount rate, NPV was Tk. 18064.17 and BCR was 2.01 as well as IRR 32.39% which was greater than opportunity cost of invested capital. Average 2.07 working hour per day extended after installation of solar home system. Overall socio-economic benefit was increased. About 48.23% households’ quality of life switched to good condition, 32.50% household’s agricultural production increased and 45% households’ social security is in good condition. The adoption of solar panel was economically viable and overall welfare increased in the study areas.

Keywords: Solar energy, Solar home system, Farmers’ livelihoods

Location: The Charvadrason upazila of Faridpur district, Fulchori upazila of Gaibandha district, Madarganj upazila of Jamalpur district and Roumari upazila of Kurigram district, Bangladesh

Start Date: 00-02-2018

End Date: 00-04-2018

Program Area: Socio-economic and Policy

Non-commodity: Livelihood

Objectives:

To explore the core economics of using solar energy and its impact on farmers’ income, livelihood and future prospect of solar panel use in Bangladesh.

Methodology:

The study was conducted in the Charvadrason upazila of Faridpur district, Fulchori upazila of Gaibandha district, Madarganj upazila of Jamalpur district and Roumari upazila of Kurigram district. A total of 240 households (i.e., 60 from each upazila) were selected through multistage cluster sampling technique and conducted direct face to face interview by using a semi-structure questionnaire. Data were collected by the researchers in the month of February to April 2018. To examine the impact of solar panel on livelihood of the households, DFID (2000) Sustainable Livelihoods Framework was used. Some other analytical techniques were used for the study to achieve the objective. Payback Period (PBP) were calculated by the following formula (Jim, 2002). PBP =TI/NR. Where, TI = Amount of total investment; and NR= Annual profit, which is annual gross income less annual operational cost. Likert scale was used to determine the perception about solar house system on livelihood of the rural households. Perception score for each respondent was calculated by using Perception Index (Roy, 2009) and it was calculated by using the following formula: Perception Index (PI) = 5×SA + 4×A + 3×U + 2× DA + 1×SDA. Where, SA = Total number of respondents expressing their perception ‘strongly agree’ for the statement; A = Total number of respondents expressing their perception ‘agree’ for the statement; U = Total number of respondents expressing their perception ‘undecided’ for the statement; DA = Total number of respondents expressing their perception ‘disagree’ for the statement; and SDA = Total number of respondents expressing their perception ‘strongly disagree’ for the statement. A constraint facing index (CFI) was computed by using the following formula: CFI = (Ch × 3) + (Cm × 2) + (Cl ×1) + (Cn ×0). Where, Ch = Number of responses indicating high constraint; Cm =Number of responses indicating medium constraint; Cl = Number of responses indicating low constraint; and Cn = Number of responses indicating no constraint.

Source of Information: J Bangladesh Agril Univ 18(2): 486–491, 2020

Article Link (Online Journal): https://doi.org/10.5455/JBAU.93384

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The adoption of solar panel was economically viable and has positive impact on asset ownership and enhance the quality of life and productivity in the rural areas as well as it contributes to achieve the Sustainable Development Goals (SDGs) more rapidly. In this survey, it is found that micro financing system increases the affordability to purchase a solar system in the rural areas. The SHS roles on social development is more dramatic to facilitate economic development and overall welfare as well. Clear household lighting and fresh air improve education, health, facilitates in access to information, communication, entertainment which increase perception on safety. Solar panel needs to be subsidized and need to make available so that people in the remote areas all over the country can buy it easily. The proper policy guidelines and implementation will accelerate the use of renewable energy which will enhance the economy and the livelihoods of the rural people.

Knowledge Management: Journal