According to the United Nations there are currently 1.4 billion people globally who lack access to electricity. In most circumstances connecting these individuals to the existing electricity grid is not a feasible option. New developments in solar technology present an alternative to traditional fuel-based generator systems, allowing households a choice in servicing their off-grid electricity needs. In this paper I ask, under what conditions will a household adopt a renewable energy technology over a fuel-based alternative? Upon calibrating a model of optimal choice between consumption of energy services and a composite good, I find that under current prices and technology conditions, households with low income levels (below 1,330 $US and up to 6,570 $US) will choose home solar systems as their technology of choice.
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