 | Photovoltaic Household Electrification Programs - Best Practices (WB) |
 |  | Institutional models |
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(introduction...)
5.1 This Chapter examines institutional structures for implementing household PV programs and discusses the roles governments and donor agencies can play in supporting such programs. PV systems programs have been implemented with various institutional arrangements. These range from electric utilities or rural electric cooperatives to private sector leasing and direct sale programs. No single institutional design is applicable in all countries; rather, successful programs are based on local conditions, capabilities, and consumer needs. The experiences of Indonesia, Sri Lanka, and the Philippines demonstrate that effective and sustainable programs have made use of existing institutions, rather than new organizational structures. While this approach avoids the problems of creating and staffing new institutions, the capabilities of existing institutions may have to be strengthened through staff training and, occasionally, through expansion. Also, existing institutions may require specific incentives to accept additional responsibilities. When it is not possible to utilize existing organization, new dedicated solar electrification organizations can be established. In the Pacific Islands, the Tuvalu Solar Electric Cooperative Society was set up after several attempts to use the local utility failed.
5.2 This following section discusses four models for household PV programs: energy service companies (ESCOs), leasing or installment arrangements, consumer financing through dealers and commercial banks, and cash sales. It also discusses ownership arrangements, financing mechanisms, and the flows of products, services, and money. The institutional models described apply to newly created solar electrification organizations as well as existing institutions.
Table 5-1. PV Program Structures
|
Structure |
Ownership |
Financing |
Product flows |
Service flows |
Money flows |
Examples |
|
ESCO |
Module and |
Provided by |
Bulk purchase of |
Provided by ESCO as |
Monthly consumer |
Utility: Idaho Power Company (USA) |
| |
controller |
ESCO through |
systems or components; |
part of ESCO |
payments to ESCO; ESCO | |
| |
owned by |
service |
installation by ESCO or |
agreement |
pays equipment suppliers, |
Coop: Rural Electricity Coops (Philippines), |
| |
company; |
agreement |
by supplier under |
|
service and admin. staff, |
Tuvalu Solar Electric Cooperative |
| |
other | |
contract to ESCO |
|
and bank loans |
Society (Pacific Islands) |
| |
components | |
| | | |
| |
may be owned |
| | |
|
Private: SOLUZ, Inc. (Dominican Republic) |
| |
by customer or |
| | |
| |
| |
company | |
| | | |
|
Leasing |
Module and |
Provided from |
Bulk purchase of |
Provided by |
Monthly consumer |
NGO: Gansu Solar Electric Light Fund |
| |
controller |
intermediary |
systems or components; |
intermediary or |
payments to intermediary. |
(China) |
| |
owned by |
through lease |
installation by |
private vendor under |
Intermediary pays |
|
|
|
intermediary; |
agreement |
intermediary or supplier |
contract to |
equipment suppliers, |
NGO-led. Coop-run: Solanka Sun Society, |
| |
other | |
under contract to |
intermediary; may be |
admin. staff, and bank |
Sarvodaya (Sri Lanka), Enersol |
| |
components | |
intermediary |
included as part of |
loans. Service technicians |
(Dominican Republic) |
| |
usually owned |
| |
leasing agreement |
may be paid by consumer | |
| |
by customer |
| | |
or intermediary. |
Govt-led. Coop-run: BANPRES (Indonesia) |
|
Consumer |
All |
Provided from |
Individual purchase of |
Provided by private |
Proceeds of loan used for |
Dealers: ADESOL, ADEPE, ADESJO, |
|
Financing |
components |
commercial |
system; installation by |
vendor, generally on |
lump-sum consumer |
SSID (Dominican Republic); Pt. |
| |
owned by |
bank, coop, or |
private sector or NGO |
a fee-for-service |
payment for equipment. |
Sudimara, Pt. Kyocindo; (Indonesia); |
| |
customer; |
vendor | |
basis, through service |
Monthly consumer loan |
Solar Power & Light Company (Sri |
| |
module can be |
| |
contracts |
repayment. Servicing paid |
Lanka), Electricidad del Sol, Industrias |
| |
used as loan |
| | |
by consumer at time of |
Electricas (Dominican Republic) |
| |
collateral, |
| | |
service. | |
| |
although other |
| | |
|
Banks: Bank of Ceylon, Hatton Bank (Sri |
| |
loan security |
| | |
|
Lanka) |
| |
may be | | | | | |
| |
needed. | |
| | | |
|
Cash |
All |
Not applicable |
Individual purchase of |
Provided by private |
Lump-sum payment to |
Dealers: Pt. Sudimara, Pt. Kyocindo |
|
Sales |
components | |
system, installation by |
vendor, generally on |
vendor. Servicing paid by |
(Indonesia); Solar Power&c Light |
| |
owned by | |
private sector or |
a fee-for-service |
consumer at time of |
Company (Sri Lanka), Electricidad del |
| |
customer | |
consumer |
basis, through service |
service. |
Sol, Industrias Electricas (Dominican |
| | |
| |
contracts | |
Republic); all companies in Kenya |
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