Determinants of Uptake of Industrial Solar in Nairobi Metropolitan

Abstract

Sub-Saharan Africa countries have abundant solar energy estimated in terawatts which can be harnessed to meet ever rising energy needs. Yet there are barriers affecting uptake of industrial solar by industries. This research aimed to establish determinants and how they effect of uptake of industrial solar mini grids in Nairobi Metropolitan area. The study objectives were; to explore the effect of financial capability, influence of Energy Act (2019), effect of business model and influence of public policy awareness on uptake of industrial solar. Descriptive research design was used. Target population was 30 industrial consumers in Nairobi Metropolitan area and three officials; a representative from Ministry of Energy, Kenya Association of Manufactures and one of the developers. The study established that energy regulations had a significant relationship with uptake of industrial solar resulting to delays, corruption and bureaucracy in implementation of energy regulations. Business model had also a significant effect towards uptake of industrial solar due to reliability and investment cost involved. Public policy awareness had a significant effect towards uptake of industrial solar and that promotion of the policy awareness was largely done by developers. The study recommends adoption of net metering, central publicly available database for industrial solar for planning purposes and need to offer affordable interest rates to investors in industrial solar with favourable loan application terms.

Keywords: Uptake of Industrial solar, Financial capacity, Business model, Public Policy awareness, Net Metering.

DOI: 10.7176/JETP/12-2-02

Publication date: April 30^th 2022