Solar microgrids have been introduced in rural areas of Ethiopia to improve access to electricity and enhance livelihoods. A mixed methods approach combining quantitative data from surveys with qualitative insights from interviews for comprehensive understanding. Women reported an average annual increase in household income by $150 following the installation of solar microgrids, indicating significant economic benefits. Solar energy microgrids positively impacted women’s financial stability and improved their ability to engage in diverse income-generating activities. Government policies should prioritise extending solar microgrid coverage to underserved rural areas to maximise poverty reduction efforts.