Access to Energy for the Base of the - Ashoka

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A novel sight is becoming increasingly common in
low-income households around the world. Tired of
waiting for a reliable grid connection, people are signing
up for solar home systems (SHS). For rural communities
without grid power and urban households with
intermittent power, a solar home system provides safe,
affordable energy.
Although solar photovoltaics12 have been around for
decades, recent developments in business models and
Solar home system
value chain
R&D /
Product design
Product
manufacturing
Marketing /
distribution
Customer
finance
Installation
maintenance
Customer
relationship
Income
Generation
Solar PV components are expensive, especially solargrade
silicon. Developed country demand, driven by
government subsidies, tax incentives, and a burgeoning
desire of rich world households to reduce their impact,
has absorbed the capacity of solar PV manufacturers.
Solar PV manufacturers have focused on consumers in
12 From US Department of Energy: "Photovoltaic (PV) systems…convert sunlight directly to electricity by means of PV cells made of semiconductor
materials….When certain semiconducting materials, such as certain kinds of silicon, are exposed to sunlight, they release small amounts of electricity.
This process is known as the photoelectric effect…A PV system is made up of different components. These include PV modules (groups of PV cells),
which are commonly called PV panels; one or more batteries; a charge regulator or controller for a stand-alone system; an inverter;… wiring; and
mounting hardware or a framework."
13 Tata BP Corporate profile : http://www.tatabpsolar.com/corporateprofile.html
technology mean the experiments are ready to turn into
reality for millions of homes.
SHS have been slow to scale for low-income households
due to a combination of challenges:
� Expensive material and inappropriate systems
� Market distortions due to subsidized or free systems
� Lack of financing for consumer purchases
� Need for trained technicians to install systems
Challenges Innovations
Manufacture of a complete range
of low cost products adapted to
local needs
Customer cannot afford high up
front payments
Require local skills for installation
and maintenance of
geographically spread systems
Source latest technologies of
low-cost components, and
assemble locally
Tap into design insights of social
entrepreneurs
Work with CSOs and MFIs to
access financing or raise a
revolving fund
Build local base of micro
entrepreneurs through training
and franchising
Germany and Spain. Even 60% of Tata BP Solar’s panels
from its plant in India is exported. 13 Panels are designed
to be small and gather as much sunlight as possible in
European conditions. Enterprises then have to pay top
dollar for components and panels are over-designed for
the Southern sun.