Expected ROI of off grid solar storage project in Ethiopia 2025

Is Ethiopia a good place to invest in solar energy?

Ethiopia has a rapidly growing economy and offers tremendous opportunities to solar PV suppliers worldwide, having among the strongest solar resources in the world. In particular, the region offers excellent potential for off-grid energy systems with solar PV systems being promoted to replace fuel-based lighting and off-grid electrical needs.

Is the public interested in installing solar home systems in Ethiopia?

The government of Ethiopia in collaboration with development partners and private sector is promoting the distribution and installation of solar home systems to the rural communities. However, there is no clear data that shows the public is interested to install solar home systems.

How much does a solar PV system cost in Ethiopia?

These cost structures align with Ethiopia's export tariffs to Kenya, which are priced at USD 6.5 cents per kWh. Currently, there are practically no roof-top solar PV systems in Ethiopia. With the planned increase in the tariff, many households and businesses may find it attractive with small individual solar PV sys-tems.

Are there roof-top solar PV systems in Ethiopia?

Currently, there are practically no roof-top solar PV systems in Ethiopia. With the planned increase in the tariff, many households and businesses may find it attractive with small individual solar PV sys-tems. Individual solar PV systems will often send power back to the grid, e.g. during mid-day, where generation is high, and demand may be low.

Should large-scale hydropower be deployed at multiple sites in Ethiopia?

The early deployment of large-scale hydropower at multiple sites in Ethiopia should be prioritised. In-vestments in hydropower serve as the key driver of electricity exports in the medium term, thereby providing a source of foreign currency.