The aim of this study is to explore opportunities and challenges of private sectorrninvolvement in electrification program of Ethiopia. Electricity service for basic needs,rnas well as for economic development in Ethiopia is a practical concern. Hence,rnEthiopian Government aimed to reach modern electricity access up to the lowerrnadministrative units through its electrification program. To this end, it has become arnnecessity to involve the private sector. The study pursued through qualitative researchrnmethodology approach. Data has been collected through survey questionnaire and keyrninformant interview. The results of the study among others; shows prospect to thernprivate sector involvement in mini-grid and off-grid solar development, support to thernoff-grid solar development beyond 25 Km away from the utility grid access linesrnthrough minimum tender subsidy /MTS/. On the other hand the challenges noted are;rnthe private sector involvement in grid connection is not clearly provided. The policy,rnlegal and institutional framework coordination and accountability in place lack clarityrnfor the private sector investment. The business model for electrification investment isrnnot clearly for seen. The study recommends specific enabling environment like; clearrnpolicy, upfront capital subsidy, attractive tariff rate, easy license and permit procedure,rnand ABC business model placement as a preference to involve private sectorrninvestment under the program envision. In a nutshell the study pioneer to take note ofrnthe private sector opportunities under the program for investment and enablingrnenvironment as a means to withstand the challenges that prohibit the private sectorrninterest to involve under the Electrification Program of Ethiopia.