Assessing the Socio-Economic Impact and Sustainability of Microfinance-Enabled Solar Home Systems in Rural Bangladesh: A Mixed-Method Study (2019–2025)

DOI

10.2991/978-2-38476-581-2_4How to use a DOI?

Keywords

CO2 emissions; SDGs; microfinance; solar home systems; sustainable energy; Bangladesh

Abstract

The achievement of 99% energy access in Bangladesh by 2025 is a national milestone, but 1-2 million people in remote places still rely on kerosene, resulting in respiratory health hazards and CO₂ emissions. This study investigates assessing the socio-economic impact and sustainability of microfinance-enabled solar home systems in Rural Bangladesh through partnerships led by the IDCOL with Microfinance Institutions such as Grameen Shakti and BRAC. The core objectives are: (1) to evaluate the socio-economic influence of SHS on health in off-grid communities; (2) to identify limitations of current microfinance models amid national grid expansion; and (3) to explore transitions toward AI-integrated and Pay-As-You-Go (PAYG) sustainable energy solutions. Employing a mixed-method approach, the study analyses secondary data from IDCOL reports (2019–2024), World Bank assessments (2018–2023), Grameen Shakti, BRAC case studies and in-depth interviews with users. Findings show that by 2024, over 6 million SHS units generated 250 MW of off-grid solar power, reducing kerosene use by 80–90%, averting 2.7 million tons of CO₂ emissions annually, and improving household health. The study proposes practical innovations expanded PAYG financing, green bonds, strengthened community MFI models, and AI-driven maintenance to overcome costs, battery waste, and grid-integration challenges. This research provides actionable insights for policymakers, MFIs, and retailers. By offering strategies to sustain equitable energy access, it supports Bangladesh’s renewable energy goals and delivers practical lessons for other developing countries navigating similar energy transitions.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Fariha Fairouz Proma
AU  - Md Golam Mubasshir Rafi
AU  - Nowshin Noweer Nisa
PY  - 2026
DA  - 2026/05/30
TI  - Assessing the Socio-Economic Impact and Sustainability of Microfinance-Enabled Solar Home Systems in Rural Bangladesh: A Mixed-Method Study (2019–2025)
BT  - Proceedings of the International Conference on Challenges and Trends in Arts and Social Sciences (ICCTASS 2025)
PB  - Atlantis Press
SP  - 30
EP  - 42
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-581-2_4
DO  - 10.2991/978-2-38476-581-2_4
ID  - Proma2026
ER  -