Assessing the Effectiveness of Renewable Energy Integration on Business Growth: A Case Study of SMEs in Lusaka Business Centre

This study assessed the effectiveness of renewable energy integration in supporting business growth among small and medium enterprises (SMEs) operating within Lusaka Business Centre, guided by the Sustainable Livelihoods Framework which considers renewable energy as both a physical and natural capital asset enhancing productivity and business resilience. A case study research design was employed to enable an in-depth exploration of SME experiences, combining both quantitative and qualitative approaches. The target population consisted of SME owners, managers, renewable energy providers, and institutional actors, with a purposive sample of fifty participants, including forty-five SME owners/managers and five key informants. Data were collected using structured questionnaires to quantify adoption trends, operational impacts, and energy cost savings, supplemented by semi-structured interviews and document reviews to capture nuanced perspectives on technology effectiveness and limitations. Quantitative data were analyzed using descriptive statistics including frequencies and percentages, while qualitative data underwent thematic analysis to identify recurring patterns and cross-validate findings. Results indicate high adoption of solar photovoltaic systems (84.4 percent) and hybrid solar–diesel systems (22.2 percent), with 66.6 percent of SMEs reporting that the technology is suitable or very suitable for their operational needs. Renewable energy met 25–50 percent of energy requirements for 40.0 percent of SMEs, and 62.2 percent perceived systems as more reliable than the national grid. Cost reductions were observed, with 35.6 percent reporting 10–20 percent monthly savings, 22.2 percent achieving 21–30 percent, and 15.6 percent saving above 30 percent. Positive business outcomes included improved operational continuity (68.9 percent experienced reduced downtime), enhanced staff productivity (71.1 percent), increased customer service performance (66.6 percent), greater competitiveness (71.1 percent), and higher revenue (68.9 percent reporting positive or very positive growth). However, 51.1 percent rated installation as expensive, 52.2 percent identified limited technical expertise as a barrier, and 75.6 percent reported challenges in accessing finance, highlighting structural and operational constraints. The study concludes that renewable energy integration significantly contributes to SME resilience, operational efficiency, and business growth, while recommending policy incentives, affordable financing, and technical training to enhance adoption and sustainability.