This paper examined the impact of rural electrification on household income and welfare, using the last two waves of Ghana Living Standards Survey (GLSS 5 and 6). Our identification strategy relies on difference-in-difference strategy. The results show that electricity access improves income and welfare of rural households. We found the estimated effect to be significant at the 25th, median,and 75th quantiles, with the magnitude of the effect increasing as one move up on the income distribution. Education, ownership of non-agricultural enterprises, and income from non-agricultural enterprises are some of the important channels through which electricity access affect income and welfare of rural households.