This study has examined the impact of solar energy adoption on the local economy in Adamawa North Senatorial District, focusing on MSMEs through a survey research approach involving 370 samples. Utilizing both descriptive and inferential data analysis methods, the study provided valuable insights into the patterns of solar energy adoption across different business sectors and the factors influencing these decisions. The analysis of the types of businesses engaged by solar energy users and nonusers among MSME owners highlights the sectoral distribution of economic activities in the region. The overall solar energy adoption rate among MSMEs in the region stands at 28.4%. Adoption is notably higher among medium-sized businesses, those with longer operational histories, larger workforces, more formal ownership structures, and those located in urban areas. The study also identified key factors influencing the decision to adopt solar PV technologies. These include initial costs, access to financing, awareness and knowledge, perceived benefits, government incentives, and peer influence. Among these, the affordability of solar technology and access to financing emerge as the most significant barriers. On the other hand, strong government incentives and high peer influence are critical enablers that could substantially boost adoption rates. The spatial regression analysis provides valuable insights into how various factors influence the profitability of MSMEs that have adopted solar energy technology in Adamawa North Senatorial District. The adoption of solar technology, the number of years a business in operation, businesses that face difficulty in accessing financing and ownership structure have significant influence on business performance of MSMEs. Finally, the spatial lag coefficient of 0.30, with a z-value of 3.00 and a pvalue of 0.003, indicates that the profitability of MSMEs is not only influenced by their own characteristics but also by the performance of nearby businesses. This spatial dependence suggests that business success in one area can positively influence neighbouring enterprises, likely due to spillover effects such as increased local demand or shared resources. This finding highlights the importance of regional development policies that foster clusters of MSMEs, enabling them to benefit from proximity to one another. By creating business-friendly environments in specific areas, governments can stimulate local economies and enhance the overall profitability of businesses within those regions.