This paper examines the utilization of various forms of cooking energy sources among households and how they influence deforestation in Uganda. The Uganda National Household Survey (UNHS) done in 2005 and which collected information from 7421 households countrywide provided data for analysis. A multinomial probit model (MNP) was used to estimate coefficients of factors influencing use of various energy sources for cooking including firewood, charcoal and modern energy (cleaner energy including electricity, kerosene and liquidified petroleum gas ). The utilization of modern energy sources was done only by 4 percent of households. Factors that influenced household energy choices were observed as consumption expenditure welfare, residing in urban or rural areas, household size, achievement of education levels beyond of primary level, and regional location of a household. The study recommended deliberate efforts by the Uganda government to intervene in addressing low adoption of modern energy. The government should implement policies to encourage the private sector to ensure accessibility of cleaner, provision of micro-credit for buying equipments and availing modern energy in smaller quantities.