This research focused on domestic biogas as a key driver of sustainable development in Rwanda, with special reference to Mugunga
Sector of Gakenke District, Northern Rwanda. Data were collected from a sample of the heads of all households operating domestic
biogas plants in the study area to whom a well structured questionnaire were administered in July 2013. Data were analyzed
referring to the frequency counts, percentages. Besides, the NPV method was used to analyze the profitability of domestic biogas
investment. The results indicated that domestic biogas contributes to the improvement of social conditions of households in the
study area. It also has positive economic effects as well as contributes to the environmental protection. Socially, some respondents
(80%) reported to use the domestic biogas for cooking everyday whereas some others (20%) say that domestic biogas is used rarely
in cooking. The calculations of the net present value for domestic biogas investment without government subsidies (given the total
investment cost of FRW 417,500 considers the present value of total revenue of FRW 459,078 and the present value of the total cost
of FRW 523,099. The net present value without government subsidies is then -64 901. As a result, there is a loss from investing in
domestic biogas plant without government subsidies. In contrast, the investment in domestic biogas with government subsidies is
profitable as the corresponding net present value is 68,697. It is recommended to the households operating the domestic biogas
plants to use it optimally and to the local authorities to sensitize farmers with enough cattle to invest in domestic biogas.