Solar home systems have huge positive impact on livelihoods in India

A recently released report by GOGLA, the global association for the off-grid solar energy industry, has established the huge positive impact of solar home systems (SHS) on livelihoods in India. In times when the government is looking to create more jobs to boost demand and with it the economy, the research report titled “Powering Opportunities in South Asia” funded by UK AID and conducted by Altai Consulting, concludes that four Full Time Employment (FTE) jobs are created in India for every 100 SHS sold. The research surveyed 949 households in South Asia, primarily including rural customers from the Indian states of Assam and Uttar Pradesh.

India has long been one of the key markets for the small-scale solar sector. Nearly 9,50,000 products, including solar lanterns, solar kits and solar home systems, were sold in the first six months of 2019 alone. New innovations such as solar water pumps, TVs, fans and refrigerators as well as pay-as-you-go technologies are now creating new and innovative ways for the Indian market to benefit from clean solar technologies.

Indian households with a solar home system also report significant improvements to their quality of life, as people feel safer and their children have more time to study. Systems also provide big boosts to income for 1 in 10 owners who are using their SHS to light and power businesses and unlock more work hours.

An overwhelming 94 percent of the households surveyed reported an improvement to their quality of life after buying a solar home system, with a majority reporting positive impacts in the areas of safety (90 percent) and education (66 percent).

Viraj Gada, GOGLA’s India Regional Representative, said, “The Powering Opportunities in South Asia report shows that even with the impressive strides made by the Indian government to increase grid access, small-scale solar continues to have an important role for Indian households. Although a majority of customers are using their solar home systems as a backup to the central grid, the additional energy security and power the systems provide are boosting quality of life and unlocking economic opportunities for those in rural and remote areas.”

Key findings

• Ninety percent report that they feel safer since purchasing the SHS.
• Twelve percent of households undertake more economic activities thanks to their SHS.
• Ninety-four percent of households report that their quality of life has improved since purchasing the SHS.
• Sixty-six percent of customers say that their children have more time to do their homework.
• Eleven percent of households generate additional income once they purchase an SHS.
• Households create an additional $66 per month on average among households generating income.
• SHS helps households to work more hours or start new activities. Overall, this additional work translates into 4
• FTE jobs per 100 SHSs sold.
• For 61 percent of households, the SHS is a backup to the grid.