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How Off-grid Solar Can Transform Business in Africa -

This can include using existing shops and staff for sales, as well as using data to screen customer applications. This group is the closest to the traditional utility-business model in the off-grid market. The current distribution models adopted by companies in the field are diverse, especially for cash sales. It is a highly effective system that enables access to basic electricity services. In addition, customers are typically charged per unit of time, not per kWh consumed. Because they invest heavily in local presence, these companies usually require a high density of customers. Integrated service providers tend to oversee product development. It is largely responsible for sales of more than 1. 7 million quality verified products and distribution through Total’s network of gas stations. Off-Grid electric is the other notable firm, and it plies its services in Tanzania and Rwanda. In addition, they may seek to upgrade existing customers to larger systems or appliances. Due to leverage from existing distribution networks and brands, platform developers may see very rapid growth in terms of households served once the partnership is proven. The home system is usually enabled to operate by instructions received via built-in GSM chip or after the customer enters a code sent by SMS. Service-platform developers have the third opportunity to position themselves as reliable middle-men by going one step farther than product manufacturers. Pushing the upsurge are the ‘pay-as-you-go’ (PAYG) firms that sell kits against small installments instead of lump sum payments with technology that locks the functionality in the event of nonpayment by a customer. Depending on the business model, the customer either makes scheduled payments or can top-up their account at any time. The most successful models for distributing branded products have largely incubated the market that exists today. There are about 20 such companies that provide consumer financing active today, serving almost half a million customers, mainly in Eastern Africa. Some companies occupy bits of the value chain, while others, such as Off-Grid Electric in Tanzania and Rwanda, are active across the full spectrum. Distributors have to create value by building strong distribution networks and customer relationships, all while maintaining maximum flexibility with regards to the type of equipment they deploy. The aim is to build lasting customer relationships and serve as a full energy-service provider. Some operate their own stores and train their own sales agents, but also leverage existing retail networks, savings, credit cooperatives (SACCOs), and partnerships with NGOs and companies. As a result, many of these companies usually focus on specific regions and grow by extracting extra value from their customer base rather than rushing for geographic expansion. Other companies may focus on particular niches including: corporate employee offers with a particular industry, bulk sales to governments or humanitarian organizations, or choosing a specific franchisee for a new market. They work along the entire value chain to ensure that they can capture value at each node, and to also ensure that all pieces work together smoothly. The opportunity does have its challenges though: the need to raise financing makes it hard for many of the specialized off-grid distributors to compete as PAYG distributors. Compared to selling the products for cash, these PAYG companies have attracted four times as much investment in just half the time. Fortunately, manufacturers may be able to differentiate their products in the future by offering distributors high quality products. Payments are often made via mobile money, particularly M-pesa in Kenya and Tanzania. Their method works by having a customer collect the system in an M-KOPA service centre, or an affiliated M-KOPA dealer, and make payments via M-PESA. The companies currently in the market occupy different parts of the value chain, which results in multiple growth strategies and, for investors, highly varied bets on where value is being created. Meanwhile, integrated service providers are most likely to propel a smaller number of customers up the energy ladder in markets with a friendly business environment. Although, because much of the value is captured by the distribution partner, platform developers will most likely seek to scale rapidly across different markets with various partners in order to grow their business. When the account is empty or in arrears, the solar kit will stop functioning until a payment is made. The situation has borne the need for diversification and innovation, so in comes off-grid solar. This has also been vital for building customer awareness about solar as a category. There are also alternative payment methods like scratch cards, direct cash payments, or mobile phone credit. The improvements in quality and value capture will most likely focus on making it harder for end-users to hack systems, as well as improving the software back-end to provide data that allows operators to cut service costs and default rates. Some lanterns are likely to be sold under PAYG as well, namely, to consumers not familiar with pico-solar. Eventually, most companies following this strategy will offer their customers a full set of appliances that can lift them up the energy ladder- from simple lighting to more advanced services such as TVs and refrigeration, and possibly even... The companies in this part of the business chain sell the product and license the software platform to their distributors against normal product payment terms. Here are some ways in which off-grid solar can be integrated into and transform the ways of doing business in Africa:. In Kenya, more than 30 percent of people living off the grid have a solar product at home. Even without partnerships with such established players, it is possible that investors and entrepreneurs will push ahead and create these services from scratch, using off-grid solar as a door opener. There are several firms offering off-grid solar services based in several countries. Apart from providing people with a cheaper and cleaner alternative to the traditional services that are currently relied on, the off-grid solar industry has had several domino effect consequences. Such companies develop activation technologies and integrate them with solar home systems. Second, the government of countries without existing offerings may see success elsewhere and try to attract off-grid solar companies. Their focus is likely to be on mass sales of a small portfolio of products, centred on solar home systems. Many manufacturers of off-grid solar products are positioning themselves as PAYG manufacturers, bringing into force the relatively low barriers for entry. Off-grid solar, PAYG in particular, has the potential to be relevant to established corporates in variety of industries, which means some of them may fund or buy PAYG startups. The last firm that offers off-grid services is Nova Lumos, which partners with MTN to distribute 80W Lumos Solar Power Station in Nigeria. The customer may either own the solar kit once a certain sum has been paid (rent-to-own model) or make continuous service payments. It is suffice to say that off-grid solar systems have created new economic systems to exploit. The companies currently in this sector either have already established distribution businesses, or are aiming to build their own, which suggests that they could expand their offering beyond solar home systems at any given time. Entering the PAYG business is becoming more accessible to companies as solar kits and back-end software that enable PAYG become available off the shelf. These include business-to-business PAYG integrators and manufacturers of off-grid solar products. They offer a solar product, which is typically a home system consisting of a PV panel, a battery and control unit, two or three lights, a phone charger, and sometimes other appliances. Some firms have already attracted funds from different industries such as equipment manufacturers (Schneider Electric), utilities (EDF), mobile operators (Orange, Safaricom), and solar distributors that were previously focused on the... A typical off-grid solar business product offering varies a lot, for they experiment with different business models and deliver a wide range of energy service packages. The customer typically makes an initial payment of around $30 for the basic home system, followed by regular payments of about $0. 30 -0. 50 per day for access to the energy services from smaller wattage systems, and upwards of $2 per day for... The platform developer provides the solar system, the operations platform, and a firmly integrated CRM system, which gives the distribution partner access to PAYG revenue with very limited capital expenditure. In conclusion, off-grid solar is likely to attract new entrepreneurs and investments in the coming years due to the following reasons: First, customers will become more familiar with the business model, thus reducing the cost of customer acquisition. The service packages can vary from simple solar lanterns to solar systems greater than 200 watts. Banking and financing business could also spark interest among financial intermediaries at some point, while beverage and pharmaceutical companies may be interested in off-grid solar solutions that can offer solar-powered refrigeration. Globally, it has grown from nearly nothing ten years ago, to more than 100 companies now actively focusing on stand-alone solar lanterns and solar home system kits- specially targeted at those not covered by national grids. Because cost reductions for portable lanterns will remain most popular in that segment, most PAYG solar kits are likely to remain solar home systems. By mid-2015, these companies had made sales of more than 20 million branded pico-solar products (defined as having PV panel smaller than 10W). Africa, Tanzania, Ethiopia, and Kenya lead the pack in adoption of off-grid solar systems. Source:

Mobile power payments and smart meters plug in Tanzanian homes - Reuters

In Kenya’s western Kakamega region, Edna Joroge has recently installed an M-Kopa solar system in her new three-bedroom home. In Kenya, U. S. -based technology venture Powerhive operates a micro-grid network for rural homes and businesses, using smart meters linked to a cloud-based server. Lymo, who lives in the Kimara neighborhood of Dar es Salaam, Tanzania’s largest city, is among the many customers of state power supplier TANESCO who now use digital platforms to pay their bills. With an ambitious target of achieving universal access to electricity by 2030, Kenya, Rwanda, Tanzania and Uganda are now exploring mini-grids to power rural communities away from the main grid. Ray Naluyaga, managing director of the Eleanor Foundation, a Tanzanian charity promoting clean energy technologies, said digital payments help prevent deaths from respiratory diseases by allowing rural people to access the financing they need for... While most African countries are embracing modern technologies like mobile money transfers, utility bill payments across the continent are still overwhelmingly made in cash, according to the report. As a result, digital payments are helping make off-grid power sources like solar and wind more economically viable. The study, published in July by the Better Than Cash Alliance, a partnership of governments and international organizations, also suggests that digital payments can create new business opportunities, increase transparency, and improve cash flow... Honest Prosper Ngowi, an economics professor at Mzumbe University in Dar es Salaam, said the shift from cash to digital payments has helped utility firms boost revenues significantly and cut transaction costs, while delivering “social benefits” to... As most customers for pay-as-you-go solar live in off-grid rural places, they also save time and money, Verma said. The foundation provides solar home systems on loan and accepts mobile payments in weekly instalments over a minimum 20-week period. Shashank Verma of Energy 4 Impact, a non-profit group working with local businesses to broaden energy access across Africa, said digital payments give customers the flexibility to pay in small instalments from as little as 50 Kenyan shillings... Digital payments can help by enabling mini-grid operators to expand their customer base in areas that are not connected to the national grid, experts say. This integrated system enables customers to pre-pay for electricity using M-Pesa, a widely used mobile phone-based money transfer service, while allowing Powerhive to remotely monitor performance, consumption and cash flows. “I paid $217 in one year and got a solar panel, lithium battery, three lightbulbs, a mobile phone charger, a torch and a radio,” she told the Thomson Reuters Foundation. DAR ES SALAAM (Thomson Reuters Foundation) - When Asteria Lymo saw her prepaid electricity meter was short of units, she grabbed her smartphone and bought some using Tigo Pesa, a local application that allows customers to pay their utility bills... A new study suggests that digital payment - whereby users shift to smart, prepaid metering systems and purchase a set amount of power electronically - not only helps customers but benefits utility companies and mini-grid providers too by reducing... In East Africa alone, pay-as-you-go solar operators have financed the sale of over 800,000 units of solar home systems, according to a 2016 report from Bloomberg New Energy Finance. The research organization estimated that digital payment-enabled solar units will bring renewable electricity to 15 million households and 75 million people by 2020. In rural Uganda, customers of Fenix International can access lighting and... Source:

Solar power lights up 300 homes in Telangana - Hindu Business Line

Please use a genuine email ID and provide your name, to avoid rejection. It has been trial run for reasonable time,” said a press release from the Chennai based institution. They have been suffering from frequent power outages, especially during monsoons and peak demand times. The project was implemented under the aegis of Ashok Jhunjhunwala, Principal Advisor, Ministries of Power and New and Renewable Energy, Government of India, and Professor (On Sabbatical), IIT-Madras. The performance and health of all the installed systems are being monitored remotely, with data being collected via mobile phones and synchronized to a central server. “The payback period for the project is less than three years,” said Venkat Rajaraman, CEO of Cygni, while Kalyani Sekhar, MD of Verizon said that it is committed to provide inverterless solar system for off-grid areas. The solar panel has been installed by Cygni Energy Private Limited, a IIT Madras incubated firm which has got the technology transferred, while Verizon has provided financial assistance to the tune of Rs 75 lakhs. About 300 homes in four hamlets of Nalgonda district, Telangana have got 24x7 power supply to meet their basic domestic needs thanks to solar power. The Indian Institute of Technology Madras (IIT-Madras), Verizon Data Services India, Southern Power Distribution Company of Telangana Limited and Rural Electrification Corporation have joined hands to install a 125 Watt solar panel in the hamlets... “IIT-Madras has developed the technology which does not require an inverter and can power a fan, a tubelight, two bulbs, a mobile charger, a power socket and a remote controller to operate the fan and tubelight. Source:


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OEM Manufacturer of Solar Mobile Charger offered by Kavita Solar Energy Private Limited, Ghaziabad, Uttar Pradesh

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Solar cell phone chargers use solar panels to charge cell phone batteries. They are an alternative to conventional electrical cell phone chargers and in some cases ...

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Balloon ride over Bagan. Amazing!
* * * * * * * * Myanmar, previously known as Burma, what a surprisingly amazing place. We booked this holiday to get out of our comfort zone of easy beach holidays in the Maldives. There were several times when we...
Photo by Neville Wootton Photography on Flickr
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Sundown at Pakokku Bridge on the Ayeyarwady River
* * * * * * * * Myanmar, previously known as Burma, what a surprisingly amazing place. We booked this holiday to get out of our comfort zone of easy beach holidays in the Maldives. There were several times when we...
Photo by Neville Wootton Photography on Flickr
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Women and children in a local village we passed on the trek. Loved the attempted peace signs and the model in purple trying to strike a pose!
* * * * * * * * Myanmar, previously known as Burma, what a surprisingly amazing place. We booked this holiday to get out of our comfort zone of easy beach holidays in the Maldives. There were several times when we...
Photo by Neville Wootton Photography on Flickr