The sun's energy can be directly converted into electricity
using photovoltaic (PV) cells, sometimes called solar cells. PV cells make
electricity without moving, making noise, or polluting. They are used in
calculators and watches. They also provide power to satellites, electric
lights, and small electrical appliances such as radios. PV cells are even being
used to provide electricity for homes, villages, and businesses.
Experience across the developing world confirms the
technical reliability of photovoltaic (PV) systems in a variety of settings.
Under the right conditions, solar home systems can offer lighting and other
services to large numbers of households that are poorly served by existing
energy sources or have no service at all. There is an important economic niche
for such systems within rural electrification programs. PV systems are an
effective complement to grid-based power, which is often too costly for sparsely
settled and remote areas. For such rural conditions, fuel-independent, modular
solar home systems can offer the most economical means to provide lighting and
power for small appliances.
1. Establishing Responsive And Sustainable Infrastructure
Successful PV household electrification programs have been
implemented under a variety of possible alternatives, including:
·
Energy Service Companies (ESCOs): Electric
utilities, cooperatives, non-governmental organizations and private companies
can operate as ESCOs which buy solar PV systems in bulk, install solar home
systems, retain ownership and bill for services;
·
Leasing or Hire-Purchase Arrangements: An
intermediary (a private company, cooperative, or NGO) retains ownership of
solar home systems until they are paid for by customers over a period of time;
the intermediary often utilizes seed money from government or donor grants to
establish a revolving fund to buy the first PV systems; and
·
Cash or Credit Sales to Consumers: Banks and
dealers provide short-term financing at market rates to help consumers finance
solar home systems. Existing organizations are used whenever possible to avoid
the problems associated with creating and staffing new institutions.
The ESCO model is an attractive concept, obtain economies of
scale in procurement and in the delivery of support services, make product
standardization and quality assurance easier, and facilitate battery recycling.
However, it's long-term viability requires business management skills and
technical capabilities that may be limited in rural areas. The ESCO model also
carries greater commercial risk due to the longer cost- recovery period.
The more market-oriented PV system financing through leasing
and consumer sales works well in areas in which an existing marketing and
financing infrastructure is already established. Commercial marketing channels,
firmly rooted in the private sector, can offer services in a competitive and
efficient manner. These commercial markets may be more responsive to consumer
requirements and can offer a broader array of products than ESCOs, and this
will be the approach adopted by Sankalpa Photovoltaics for pursuing a
sustainable rural-based photovoltaics dissemination strategy.
2. Financial Sustainability
PV programs must be operated as businesses. They should
generate revenues sufficient to recover capital investment, service debt, pay
for administrative and support services, cover payment defaults. In the past,
the fees charged under many donor- and government-sponsored programs were set
at levels comparable to the monthly cost of kerosene for low-income households.
This was based on the assumption that rural consumers have a very limited
capacity to pay. Such PV programs are intrinsically unsustainable over the long
term.
Experience shows that consumers are often willing and able
to pay more for highly valued services than has previously been assumed. To
ensure sustainability, PV programs should:
(a) set
prices to allow for full cost recovery;
(b) select
only consumers with a willingness and ability to pay;
(c) ensure
that consumer expectations are in line with the energy services to be provided;
(d) maintain
high product quality and responsive services;
(e) establish effective fee collection methods and
enforce regulations to 'shut off' service for nonpayment;
(f) adopt
simplified administrative procedures; and
(g) select
and retain quality staff.
3. Effective Management and Support Services
A successful PV program needs well-qualified managers and
technicians. Local recruitment is advisable since people from the community who
are known and trusted are more effective than workers from a central agency
located outside the area. This, however, will often necessitate extensive
training.
Managers need to be proficient in business, marketing, and
financial operations and to have access to information, technical assistance
and ongoing training to update their skills. Adequate salaries and benefits are
also required to retain qualified managers in rural areas.
In addition, technicians must be trained (and given periodic
refresher courses) in order to assure responsive repair and maintenance
services - an often underemphasized aspect of PV programs. Technicians also
need appropriate tools and transportation as well as locally available supplies
of spare parts.
Solar Photovoltaic Technologies
