Effects of Tax subsidy on the adoption of solar PV: a case of selected Suppliers and User in Dar es Salaam and Costal Regions

This study focused on determining the effects of tax subsidy on adoption of solar PV for suppliers and users, it also reviewed the current situation of solar PV adoption barriers. The study applied a case study of selected suppliers and users in Dar es Salaam and Costal Region. Data collection tools methods include questionnaires, focus group discussion and document review. A sample of 60 respondents was adopted purposively in which 50 were users and 10 suppliers. Secondary data were also employed in this study. Data analysis was done qualitatively and quantitatively. Major reasons for purchasing solar PV includes; cost saving, reliable power source and independency from the national grid. Barriers for adoption of solar PV adoption include high initial costs and lack of trail ability, low quality and lack of established suppliers. The findings show that the tax subsidy has led to decrease in average Costas of PV systems, and increase in number of PV suppliers and importers. There has also been an increase in solar PV importation transactions after introduction of tax subsidy. The regression method produces the correlation coefficient of 0.7295, confirming a moderate interdependency relationship between the solar PV Tax subsidies and number of PV importers. It is concluded that suppliers’ and users’ adoption of the solar PV is positively influenced by tax subsidy policy.