Impact evaluation reports increased profitability and productivity in urban small enterprises due to solar lighting systems, suggesting economic benefits.
Off-grid solar lighting systems have been implemented in urban areas of Addis Ababa, Ethiopia to provide energy access for small businesses. A mixed-methods approach was employed, including surveys and interviews to assess the effectiveness of solar lighting on profitability and operational efficiency. Businesses reported a $10 increase in daily revenue for every additional hour of consistent power supply from off-grid solar systems, with an average improvement of 30% in productivity. Off-grid solar lighting significantly enhances the operational capabilities of small businesses by providing reliable energy access, particularly during peak business hours. Policy makers should incentivize the adoption of off-grid solar technologies for urban small enterprises to support economic growth and sustainability. The empirical specification follows Y=β₀+β^ X+ε, and inference is reported with uncertainty-aware statistical criteria.
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Teklehuyesus et al. (2008) studied this question.
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