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Research Paper | Agricultural Economics | Bangladesh | Volume 6 Issue 10, October 2017

Use of Solar Panel at Rural Areas in Bangladesh: Impacts, Financial Viability and Future Prospects

Mohammad Ataur Rahman | Md. Ibrahim Kholilullah

Abstract: Electricity is the life blood of power for most of the country's economic activities. Solar panels may be a reliable and good source for supplying electricity throughout the country. The study was undertaken to determine the intensity of solar panel system is practiced in Bangladesh, the Net Present Value (NPV), Benefit -Cost Ratio (BCR) and IRR of the solar panel, the impact of solar panel on livelihoods, the future prospect of solar panel in Bangladesh, and the problems and constrains of the solar panel faced by the households. Sherpur upazila of Bogra district and Haluaghat upazila of Mymensingh district in Bangladesh were selected purposively because of the intensity of solar panel users and familiarity of the area. A total 140 households were selected through multi-stage cluster sampling technique and conducted direct face to face interview by using semi-structure questionnaire. Survey method was followed to collect data from the respondents. Data were collected by the researcher through personal interview and focus group discussion. Tabular technique was applied for the analysis of data and sustainable livelihood framework was used for the analysis of household assets. It was found that in Bogra district about 52.86% respondents used low capacity of solar panel, about 28.57% respondents used medium capacity of solar panel and 18.57% respondents used high capacity of solar panel. In case of Mymensingh district about 62.86% respondents used low capacity of solar panel, about 31.43% respondents used medium capacity of solar panel and 5.71% respondents used high capacity of solar panel. Financial analyses were done on the basis of investment decision making tools like Net Present Value (NPV), Benefit Cost Ratio (BCR), Internal Rate of Return (IRR) and Payback Period (PBP). NPV, BCR, IRR and PBP were Tk.312, 1.01, 10.26% and 6.08 years, respectively in Bogra district and Tk.1051, 1.04, 8.72% and 7.06 years, respectively in Mymensingh district. Most of the respondents reported that both their income, expenditure level as well as their livelihoods had increased after using the solar panels. After getting the solar panel purchased most of the livelihood assets were improved. But 34% and 13% of the respondents said that the land leased and cash in hand were unchanged in Bogra district and 11% and 23% respondents in Mymensingh district, respectively. The expected value of NBI was positive (45.87) means the project is preferable for continuing the business for the future in Bogra district and the value was also positive (127.58) in Mymensingh district. About 95% of the respondents reported shortage of sunlight in rainy day as problem in Bogra district and this figure was 92.85% in Mymensingh district. It may be conclude that Bangladesh has a great potentiality to adopt more solar panels especially in household level since it has positive impact on livelihoods.

Keywords: Solar Panel, Financial Viability, Future Prospects, Bangladesh

Edition: Volume 6 Issue 10, October 2017,

Pages: 398 - 404

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