Report Unveils Growth Potential for Rooftop Solar in Samoa

Apia, Samoa – 18 November 2024 – A recent study has shed light on the promising demand for rooftop solar energy in households and businesses across Samoa.

The study was conducted by the Market Development Facility (MDF), funded by the Australian Department of Foreign Affairs (DFAT) and co-funded by the New Zealand Ministry of Foreign Affairs and Trade (MFAT).

Implemented by Palladium in collaboration with Swisscintact, the research indicates a significant opportunity for private investment in Samoa’s green energy initiatives.

The study identifies the commercial and household sector as a ripe area for attracting private investments, highlighting its potential to support the Samoan government’s green targets.

“With a large, relatively untapped market, the availability of unutilized roof space reduces obstacles typically associated with land availability and environmental approvals,” the study said.

Furthermore, households and businesses are increasingly motivated to invest in solar energy solutions to mitigate rising power bills, reduce emissions, and ensure a more stable power supply.

The findings of the report being discussed in a public forum in Apia last week.

The findings are based on comprehensive telephone interviews with 91 households and written surveys completed by 141 businesses.

The results reveal that 58 percent of household respondents are paying energy bills of at least WST 50 per month, with a staggering 96 percent reporting experiencing power cuts every two months.

As a result, 19 percent of households have already begun investing in alternative power sources such as diesel generators and solar systems. Interestingly, while the willingness to pay for rooftop solar exceeds average annual energy costs, it still falls short of the total cost of installation.

Approximately 23 percent of households have already invested in stand-alone solar products, including hot water systems and outdoor lighting. Moreover, 67 percent of households expressed a willingness to invest in rooftop solar using their own funds, while 25 percent are open to exploring loan or subscription models to finance their systems.

On the business front, electricity bills are a major expense, with most reporting costs between ST$250 and ST$500 per month. Among the surveyed businesses, 22 out of 39 indicated a willingness to invest under ST$10,000 in solar systems, while 44 percent are ready to spend more than ST$10,000.

Notably, many businesses remain unsure about financing options available for solar installations.

The tourism sector particularly stands out, with 76 percent of tourism businesses considering the installation of rooftop solar systems. Among them, 44 percent plan to use their own funds for investment, while 24 percent are looking to leverage financing options. However, 34 percent are still unsure of the available options.

Despite the positive interest, the report highlights that households and businesses require more information to understand the types of solar solutions available, their costs, potential savings, and payback periods.