Off-grid energy systems and economic returns of luxury residential apartments in urban and peri-urban Ghana

Purpose Off-grid energy systems are emerging in luxury residential real estate as a response to demand for energy autonomy. Despite global momentum, there are few empirical studies on the economic viability of off-grid systems in Africa's real estate markets. This study assesses the economic returns of Off-Grid Energy Systems in Luxury homes in urban and peri-urban Ghana. Design/methodology/approach A quantitative framework grounded in transaction cost economics (TCE) theory was adopted. The research examined 555 luxury units in urban and peri-urban Accra, analysing household energy costs, system characteristics, property values and developer financial disclosures. Statistical methods, including one-way analysis of variance, multiple regression and hedonic pricing models, were applied to assess cost efficiency, return on investment (ROI) and value premiums. Findings Solar-hybrid systems involve a high capital investment (Ghana Cedis (GHS) 125,000–145,000) but generate significant annual savings (approximately GHS 9,000), an attractive ROI and price premiums of up to GHS 120,000. ROI is positively influenced by battery size, system age and location. Hedonic models confirm that off-grid features significantly affect property valuation. Practical implications Off-grid housing represents both a sustainable and economically strategic solution. Developers gain a market advantage in a volatile energy environment, although high upfront costs and regulatory gaps remain significant barriers to scaling. Originality/value This is the first empirical study in Africa to apply the theory of the circular economy to luxury off-grid housing, linking circular economy concepts with investment behaviour and offering new perspectives on energy independence in premium real estate markets.