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Bangladesh has the world s fastest growing, off-grid solar home
system (SHS) coverage. In the past decade, the number of SHS
installations has risen phenomenally from a five-year target of
50,000 in 2003 to 50,000 a month in 2013, with support from the
World Bank and other development partners. Even so, only 10 percent
of off-grid households have been reached, suggesting ample room for
continued expansion. Given the recent surge in SHS adoption, a key
policy issue is whether the partial subsidy provided under the
current program, implemented by the Infrastructure Development
Company Limited (IDCOL), should be continued. Surge in Solar
Powered Homes: Off-Grid Experience in Bangladesh assesses the
country s remarkable growth in SHS, its support schemes, and the
welfare impacts for rural households, using both large-scale
household survey and institutional data. The book s findings
clearly demonstrate that the social benefits from SHS adoption far
exceed the cost of the subsidy. Within the current market incentive
structure, there is tremendous scope for broadening the rural
market reach. But the high upfront cost of purchasing a SHS at
current market prices is a barrier to future sales, suggesting the
continued need for IDCOL s well-targeted, subsidized operation."
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