Selection of the most appropriate package of Solar Home System using Analytic Hierarchy Process model in rural areas of Bangladesh

Analytic Hierarchy Process (AHP) model was applied to select the most appropriate package of Solar Home System (SHS) for rural electrification in Bangladesh. Three different packages (75 Wp, 50 Wp and 30 Wp) were considered for selection and expert's opinions based on three attributes: i) cost, ii) meeting the electricity demand of basic household need and iii) availability of package in local market were taken to quantify relative priorities. After an intensive analysis through AHP model, it was found that 30 Wp system was the most appropriate package (percentage of priority was 42.19%) of SHS for rural electrification in Bangladesh. The useable items of this package are 2 lamps; each 8 Watt capacity and a black and white television. Customers can get it with cash price of BDT 12500 (US$ 162.34), although, different credit and pricing options are also available. 30 Wp SHS is also financially feasible for suppliers with Internal Rate of Return (IRR) value as 28%. (C) 2012 Elsevier Ltd. All rights reserved.