Assessment of potential drivers and barriers in biogas technology adoption as an alternative energy sources has recently become crucial and attractive due to the increasing demand for energy, the limited resource for buying fossil fuel and the environmental concerns. The Ethiopian domestic energy sector relies on a limited range of energy resources with a highest share being biomass that has brought substantial impact on the environment. Although Ethiopia is known by its large livestock resource potential, the level of manure resource utilization in this regard is very low. Overall, over 95 %of the domestic energy needs are met from biomass- based fuels thereby contributing to deforestation, loss of soil nutrients, and organic matter. However, so far, very limited studies were conducted in the area of rural energy in Ethiopia; specifically limited study has been conducted concerning the impacts, drivers and barriers of biogas technology on rural households. However, they did not asses the economic impact, and driving and constraining factors of the technology. Therefore, there is information gap on the benefit of biogas, its drivers and barriers on the study area.