The Impact of Solar Energy Adoption

Globally, there has been a surge in the adoption of cleaner and renewable sources of energy. However, few studies have focused on the implications of the switch in energy consumption on the financial performance of traditional power utility firms. This study examined the impact of solar energy adoption on ZETDC financial performance. The objectives were to analyse factors influencing the adoption of solar energy as an alternative energy source in Zimbabwe; establish if there is a relationship between solar energy adoption and sales performance of ZETDC; determine the impact of solar energy adoption on the profitability of ZETDC; and determine the effect of solar energy adoption on the cost efficiency of ZETDC. Data were analysed quantitatively using descriptive and inferential statistics generated from SPSS; and qualitatively through thematic content analysis. The study concluded that solar energy adoption negatively impacted ZETDC financial performance. It was recommended that ZETDC increase its investment in power generation infrastructure and adopt a cost leadership strategy to reduce its costs and enhance profitability.