Off-grid Solar Lighting Systems and Small Businesses in Urban Addis Ababa: An Impact Evaluation

Off-grid solar lighting systems have been implemented in urban areas of Addis Ababa, Ethiopia to provide energy access for small businesses. A mixed-methods approach was employed, including surveys and interviews to assess the effectiveness of solar lighting on profitability and operational efficiency. Businesses reported a $10 increase in daily revenue for every additional hour of consistent power supply from off-grid solar systems, with an average improvement of 30% in productivity. Off-grid solar lighting significantly enhances the operational capabilities of small businesses by providing reliable energy access, particularly during peak business hours. Policy makers should incentivize the adoption of off-grid solar technologies for urban small enterprises to support economic growth and sustainability. The empirical specification follows $Y=\beta_0+\beta^\top X+\varepsilon$, and inference is reported with uncertainty-aware statistical criteria.