Determinants of adoption of renewable energy in Kenya

Abstract

Kenya being on the equator experiences enough solar energy of between 4-6 KWh/M2 which provides excellent opportunity for solar energy development. Nonetheless, the cost of acquiring it is becoming an inhibiting factor as demonstrated by the slow adoption of the technology despite the huge potential the country possesses. Moreover adoption of biogas as a source of energy is also very low. Therefore, this study sought to investigate the determinants of adoption of solar and biogas using cross sectional data collected from 70 districts across the country. The study used bivariate probit model so as to account for interdependence in adoption decisions. However, the results indicated that decisions to adopt solar and biogas are independent. Thus the study used separate probit equations to investigate the impact of household head characteristics, household characteristics and economic factors on adoption of both solar and biogas. The result revealed that household heads with secondary and post secondary education and household size significantly influence adoption of solar energy while gender of the household head and household size significantly influences adoption of biogas. The study recommended that government and other stakeholders should create awareness and sensitize the learned people regarding the benefits of adopting solar energy so as to increase adoption of solar energy among the educated people. Further, government should create incentives to encourage men to adopt biogas by sensitizing them on the importance of biogas a source of renewable energy.