Solar energy is one of the many benefits of renewable energy sources in many parts of the world including Ethiopia which also reduces energy costs and encourages energy security and environmental sustainability. This study aimed to assess solar energy potential based on sunshine hour record data and evaluate factors affecting the adoption of solar energy technology in Ziquala district. The data were collected from both primary and secondary data sources. First, the identified barriers are classified into economic, policy and institutional, information and human resource, technological, and societal, from various studies. The primary data was collected from household survey, questionnaire, key informant interview and direct field observation and focus group discussion with relevant experts, this thesis identifies the key barriers to the adoption of solar energy technology. The secondary data for the hour of sunshine for this station is collected from National meteorological agency in Eastern Amhara Kombolcha Center. The data used for the econometric model was collected from randomly selected 93 adopters and 256 non-adopters from three kebeles in Ziquala district. The data was analyzed using SPSS version 27 software to assess the level of solar energy technology adoption within the study area and tried to establish what gaps exist and why, provided for factors affecting adoption of solar energy technology, socio-economic implications of solar energy technology and effective strategies being used to raise awareness. Based on the Angstrom-equations the result of annual mean daily global solar radiation for three stations such as Tsitsqa, Lalibela and Amdework has 6.18, 5.69 and 5.75 kWh/m 2 /day respectively, which is actually very good solar energy potential and the statistical error test results in three station Mean bias error, mean percentage error (%) and root mean square error value has shown best prediction accuracy with the lowest value as a test of goodness of fit and the value has close to zero. This study concludes that policy measures should create awareness through training, education, information access and improving economic status of households to achieve enhanced adoption of solar energy technology. In this study Angstrom equation is highly recommended to estimate monthly average daily global radiation for the three stations.