Dependence on biomass, especially wood, to meet domestic energy needs raises several socio-environmental concerns. In contrast, cattle manure, which may be used to generate biogas, is considered a cleaner and cheaper source of energy. Despite the existence of several initiatives to promote biogas, systematic analyses of the effects of such initiatives are limited. This paper provides such an analysis. We use data from rural Rwanda to examine the effects of access to bio digesters on energy-related expenditures and consumption of traditional fuels. We find that participation in Rwanda’s National Domestic Biogas Programme leads to substantial reductions in firewood use and yields large savings. However, a cost-benefit analysis reveals that the attractiveness of participating in the biogas programme is hampered by a long payback period.