HOUSEHOLDS’ WILLINGNESS TO PAY FOR ROOFTOP SOLAR ELECTRICITY GENERATION: A CASE STUDY IN HARAR TOWN, ETHIOPIA

Abstract

The potential of solar energy in addressing global energy challenges, particularly in regions like Ethiopia with abundant sunlight, cannot be overstated. This study investigates the potential of solar energy adoption, particularly through solar rooftops, as a solution to address energy challenges in regions with abundant sunlight, such as Ethiopia. Focusing on urban households in Harar town, Ethiopia, the study assess their readiness to adopt solar rooftops for electricity generation and their awareness of solar technologies. Through a cross-sectional contingent valuation survey involving 381 sampled respondents, systematic random sampling and face-to face interviews were conducted using structured questionnaire. Both descriptive and econometric analyses were employed, with logistic and ordinal regression models assessing households' WTP and awareness levels, respectively. The findings underscore the significant positive impact of factors such as household head education, income, price of grid electricity and house ownership type on the willingness to pay for solar rooftops. Interestingly, there's a negative correlation observed between willingness to pay and the price of solar rooftops. Additionally, education and awareness about climate change emerge as key drivers positively impacting solar technology acceptance. The study suggests a holistic approach to increase the uptake of solar energy, involving awareness initiatives, financial aid, and improved credit accessibility. Emphasizing its benefits, promoting its adoption, and facilitating financial support can encourage households to embrace solar alternatives. Collaborative endeavors among stakeholders, including community initiatives and favorable policies, are essential for fostering sustainable energy practice..