Assessing the Economic Viability of Solar Electrification Against Grid Extension in Rural Ghana

Abstract

Electricity availability is crucial for socioeconomic development, particularly in developing nations' rural areas. As a result, solar electrification has therefore been recommended as a more sustainable and cost-effective option for rural electrification. The research aim was to compare the economic viability of solar electrification against grid extension in rural Ghana, by examining the cost-benefit of solar electrification and grid extension and identifying the most cost-effective and sustainable approach for providing electricity to rural communities in Ghana. Hundred respondents were selected for this study using a simple random sampling technique. Most respondents believe that solar systems are cheaper to install estimating between GHS 40000 and GHS 50000 compared to grid extensions which averages about GHS 320000, as they can be installed by professionals. Solar electricity offers a good return on investment and doesn't require monthly bills, making it economically sound. Maintenance is easy and cost- efficient compared to grid extensions. Solar electrification doesn't emit carbon emissions of greenhouse gases, and it improves grid security. Most respondents agree that solar electrification generates employment opportunities and is cost-competitive with conventional electricity. They also believe solar energy ensures clean energy for sustainable development and poverty alleviation. Solar electrification is a cost-effective and environmentally friendly alternative to grid extension, reducing carbon footprint and providing reliable power. Its initial capital investment is crucial for its economic viability. The study recommends research on hybrid systems integrating solar electrification with grid extension, exploring new technologies like energy storage and smart grids, and exploring regulatory frameworks and policy incentives to promote private sector investments in solar electrification in rural Ghana.