The Benefits of Solar Energy for Low-Income Communities
Published at - March 16, 2025
Solar energy is changing the face of the remote, rural areas of Bangladesh. The pace of installation has simply skyrocketed in the last couple of years. - Says Zubair KM Sadeque the Energy Finance Specialist at the World Bank.
Just 7,000 homes in Bangladesh had solar panels installed in 2002. Today, solar power for low-income families provides electricity to over 1.4 million households in rural Bangladesh. Energy poverty solutions are essential in a developing country like ours, where almost half of the population lives without electricity. High electricity costs and unreliable energy sources create serious social and economic challenges for many. Fortunately, affordable solar energy offers a renewable energy alternative that is both sustainable and cost-effective. The solar energy industry in Bangladesh is stepping up to bridge this gap, and Solaric is one of the leading companies working towards rural electrification. By combining global resources with local talent, Solaric is expanding access to clean energy and fostering economic growth. In this blog, let’s dive into the many advantages of solar energy for low-income communities, including increased energy independence, cost savings, job development, and environmental improvements.
Lower Electricity Expenses
The substantial reduction in electricity prices is among the most obvious and immediate advantages of solar energy for low-income communities. Low-income households find it challenging to properly manage their budgets because traditional power rates are prone to swings owing to market demands and the availability of fossil fuels. Households can significantly reduce or even eliminate their electricity expenses by investing in solar power, whether through individual rooftop installations or communal solar projects.
Depending on geography and energy usage, solar energy systems can lower household electricity costs by 50–90%, according to the U.S. Department of Energy. Families can devote their financial resources to other necessities like food, healthcare, and education as a result of these cost savings.
Government Grants and Incentives
The promise of solar energy to reduce energy poverty has been acknowledged by governments across the globe. Tax credits, rebates, and grants are just a few of the incentive schemes that increase low-income households' access to solar energy. Programs like the Weatherization Assistance Program (WAP) and the Low-Income Solar Energy Program (LISEP) in the US assist in defraying the cost of installing solar energy systems. Similar initiatives exist in many countries, ensuring affordable solar energy access for disadvantaged communities.
Economic Development and Employment Creation
Job Opportunities in the Solar Industry
Solar energy has the fastest rate of job growth worldwide. Installing, maintaining, and producing solar panels creates many job opportunities, especially for those with little access to technical training or higher education. These positions frequently require skills that may be learnt through short-term training programs, giving underemployed and jobless people in low-income neighbourhoods a route to economic mobility.
The Solar Foundation's National Solar Jobs Census indicates that employment in the solar sector has grown faster than the labour market as a whole. Low-income workforce development initiatives like Solar Works DC and GRID Alternatives provide training and placement opportunities, guaranteeing that these communities gain sustainable jobs and reduced energy bills.
Strengthening Regional Economies
By keeping money in the community rather than sending it to big utility companies, solar energy investments in low-income regions boost local economies. As a result, small solar installation companies and cooperatives frequently form, fostering local ownership and locally driven economic growth. Additionally, companies that use solar energy to lower their operating expenses can put the money they save back into hiring more staff, expanding, and improving local infrastructure.
Advantages for the Environment and Health
Decrease in Carbon Emissions and Pollution
Because they live close to power plants and other industrial sites, low-income neighbourhoods are frequently disproportionately impacted by pollution. Conventional energy sources exacerbate respiratory ailments and other health issues by contributing to air and water pollution, especially from coal and natural gas. These communities can drastically lower their exposure to dangerous contaminants by switching to solar electricity.
A clean, sustainable energy source, solar power produces electricity without releasing harmful pollutants or greenhouse gases into the atmosphere. By converting to solar power, a single household can lower its annual carbon footprint by several tonnes of CO2, aiding in larger efforts to mitigate climate change.
Better Public Health
Solar energy's positive effects on the environment directly benefit public health. Asthma, bronchitis, and other respiratory disorders are more common in low-income communities due to exposure to industrial pollutants; decreasing air pollution lowers these rates. Additionally, families may afford better healthcare thanks to lower household energy expenses, which enhances society's general well-being.
Resilience and Energy Independence
Reducing Reliance on Sources of Unreliable Energy
Frequent power outages and energy insecurity are two issues that low-income areas frequently experience about energy reliability. High energy demand, ageing infrastructure, and a lack of investment in low-income communities are the causes of these problems. Even in the event of a grid outage, solar energy, particularly when combined with battery storage, offers a decentralised power source that guarantees steady access to electricity.
For renters and others without adequate rooftop space, community solar projects offer a workable option by enabling many families to benefit from a single solar installation. By empowering communities to take charge of their energy requirements, these programs lessen their susceptibility to changes in the external energy market.
Resilience in Disasters
Low-income areas are disproportionately affected by natural disasters, which frequently leave them without electricity for long periods. In an emergency, solar energy systems with battery storage can supply backup power, guaranteeing that vital utilities like communication, medical equipment, and refrigeration continue to function. Putting money into solar energy increases community readiness and resilience in areas vulnerable to hurricanes, wildfires, and other climate-related calamities.
Social Justice and Energy Equity
To guarantee that all communities, irrespective of income, have access to reasonably priced and sustainable energy, energy equity is an essential concern. Due to excessive prices and restricted access to renewable energy infrastructure, low-income and marginalised groups have historically experienced energy insecurity. By increasing access to solar energy, underserved areas are guaranteed to be included in the clean energy revolution. Community solar initiatives and subsidies are examples of policies that support equitable solar distribution and help close the energy gap by giving all populations fair access to energy.
Problems and Fixes
Costs of Initial Installation
The initial cost of installation is one of the main obstacles to the adoption of solar energy in low-income communities. Even though costs have dropped dramatically in the last ten years, initial costs may still be a deterrent. Affordable alternatives are offered by financing methods such as community solar programs, power purchase agreements (PPAs), and solar leasing. With these models, homes may take advantage of solar energy without having to make significant upfront expenses.
Insufficient Knowledge and Information Availability
Many low-income areas are unaware of the financial aid alternatives and solar initiatives that are available. Initiatives for education and outreach are essential to closing this gap. Community leaders, local governments, and nonprofit groups can all be extremely helpful in spreading knowledge and making solar energy options more accessible.
Even while there are still obstacles to overcome, new funding sources, government grants, and neighborhood-based projects are expanding access to solar energy. Low-income communities may end the cycle of energy poverty and take steps towards a more sustainable and just future by investing in solar energy.