The Commercialization of Solar Energy as a Means for Rural Development

Access to modern sources of energy provides opportunities for social and economic development to rural communities in the developing world. Solar electric systems are sometimes economically and environmentally preferable to fossil-fired generation for providing this access. Though a donor model is often used, market-based expansion of the use of solar electricity in these communities has also been successful. Key issues for market models, some of which are also pertinent to donor models, include: availability of both physical system components and the human capacity to install, use and maintain them in a market environment; acceptability and perception of value of the technology and its resulting impacts; affordability and financing; synergy with - rather than competition from - donors in the same geographic location; and government policies that support market environments.