The Ethiopian government aspires to reach middle income status by 2025 through its Growth andrnTransformation Plan. The Growth and Transformation Plan is a development plan of therngovernment of Ethiopia. Its objective is to bring transformative social and economic changes inrnEthiopia that will enable it to become a middle income country by 2025 (FDRE, 2011).rnOnly 2% of the rural population of Ethiopian has access to Grid Electricity, solar technologyrnprovides the Ethiopian government with the opportunity to address energy challenges without thernneed to implement expensive power generation projects, transmission and distribution networks.rnThe objectives of this study is to assess the Challenges in Solar Home System dissemination inrnrural Ethiopia, to propose the possible solutions to overcome the challenges, to highlight the extentrnto which Policy makers, Business people and financial institutions can support companies like SEFrnin the SHS dissemination in rural Ethiopia.rnQualitative data analysis was undertaken in the study and interviews were conducted to collect thernrequired data. A sample of four stakeholders which are directly related to solar power businessrnwere studied. Although the case company is Solar Energy foundation, the other three stakeholdersrnwere involved in the interviews to gain more input in to understanding the challenges and possiblernsolutions towards solar home system dissemination.rnThe findings of this study indicate that there are major challenges that hinder the dissemination ofrnsolar home systems in rural parts of Ethiopia and possible solutions to overcome these challengesrnare highlighted. The output of this study can be useful to the Ministry of Water, Irrigation andrnElectricity and in particular to the Ethiopian Electric Power company.rnKey Words: Ethiopia, Solar Home Systems, Challenges in SHS dissemination and possiblernsolutions