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close this bookPhotovoltaic Household Electrification Programs - Best Practices (WB)
View the document(introduction...)
View the documentForeword
View the documentAcknowledgments
close this folderExecutive summary
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View the documentOvercoming the first cost barrier
View the documentEstablishing responsive and sustainable infrastructure
View the documentProviding quality products and services
View the documentThe role of governments and donors
View the documentAbbreviations and acronyms
View the documentIntroduction
close this folderThe place for photovoltaics
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View the documentThe solar home system
View the documentThe cost of solar home systems
View the documentThe solar home system niche
View the documentConsumer perceptions
close this folderThe economics of PV household electrification
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View the documentSolar home systems vs. kerosene and automotive batteries
View the documentSolar home systems vs. grid-based power supply
View the documentLoad growth impact
close this folderBarriers to affordability
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View the documentFirst cost barriers
View the documentHigh transaction costs
View the documentMarket distortions
close this folderInstitutional models
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View the documentEnergy service company (ESCO)
View the documentLeasing arrangements
View the documentConsumer financing
View the documentCash sales
View the documentThe role of governments and donor agencies
View the documentRole of the world bank and other donors
close this folderAttaining financial sustainability
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View the documentTerms and conditions
View the documentPricing strategies
View the documentGrants and subsidies
View the documentEnforcing repayments
View the documentFinancing battery replacements
close this folderTechnical requirements
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View the documentHardware design
View the documentStandards and specifications
View the documentOther technical considerations
View the documentQuality control
View the documentMaintenance services
View the documentEducating users
close this folderBest practices: conclusions and recommendations
View the document(introduction...)
View the documentOvercome the first cost barrier
View the documentEstablish a sustainable infrastructure
View the documentQuality products and services
View the documentGovernment support
View the documentDonor support
close this folderAnnex 1 : ASTAE case studies in PV household electrification
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View the documentIndonesia
View the documentSri Lanka
View the documentThe Philippines
View the documentThe Dominican Republic
View the documentConclusions
close this folderAnnex 2 : Economic and financial comparisons of rural energy alternatives
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View the documentEnergy requirements
View the documentCriteria for village selection
View the documentRural energy alternatives
View the documentLeast-cost comparison (economic basis)
View the documentLeast-cost comparison (financial basis)
View the documentCase studies: productive loads and load growth
View the documentConclusions
View the documentReferences
View the documentDistributors of World Bank Publications
View the documentRecent World Bank technical papers

Establish a sustainable infrastructure

8.7 The start-up phase of solar home system marketing requires special attention to sustainable infrastructure development. This requires careful market niche identification, reliance on local capabilities for implementation, and appropriate training programs for technicians and users.

8.8 Target Specific Areas. The economic niche for solar home systems covers remote or isolated areas where loads and load densities are low. Rural electrification programs should explicitly consider solar home systems as part of a portfolio of technologies that can provide least-cost electricity services. Careful market research should identify which type of service is best suited to each community. Targeting helps solar home system programs serve appropriate rural concentrations and facilitates cost-effective energy service delivery.

8.9 Use Local Organizations. Local grass-roots organizations are best equipped to implement solar home system programs in sparsely populated areas. A community organization, NGO, or locally-based private firm knows its potential customers and understands local traditions, customs, and constraints. This eases troubleshooting and problem solving. Local organizations can respond to calls in a matter of hours or days rather than the weeks that might be required with a central agency. A suitable local organization can serve as an ESCO. A new organization should be created only as a last resort and requires the full support of the government and community. It is better to build on existing marketing and retail networks or to use leasing, consumer financing, or cash sales arrangements to deliver PV services than to create a new organization.

8.10 Ensure Training Technicians. Rapid, responsive service will satisfy customers and satisfied customers are important marketing agents. For this reason, well-trained technicians are needed to install, maintain, and repair solar home systems. While some users can perform simple maintenance procedures, trained technicians are still required after installation since experience has shown that, in the long term, reliance on users for maintenance can impair the performance of solar home systems. When systems fail, users are less likely to pay fees regularly. This affects a program's financial sustainability. To avoid unexpected "down-time" in service, technicians should be available locally and equipped with adequate tools and spare parts. Follow-up training is also important after a program has been under way for a number of years. Equipment will require more frequent care, new technicians must be trained, and existing staff will need to upgrade their skills.