Solar Energy International

Renewable Energy Education

for a Sustainable Future

Rivers for Life

October 2010

Laurie Guevara-Stone
International Program Manager
SOLAR ENERGY
IOnline
Hands-on Workshops
NTERNATIONAL
Courses
Curriculum Development
Outreach Programs
 Solar Electricity
for the Developing World
Solar Home Systems (SHS)
Community Systems
DAY USE SYSTEM
DC SYSTEMS WITH BATTERIES
DC SYSTEM WITH
LVD OPTION IN CONTROLLER
SYSTEM WITH AC & DC LOADS
HYBRID SYSTEM:
PV WITH BACK-UP GENERAT
BATTERYLESS
UTILITY INTERACTIVE SYSTEM
UTILITY INTERACTIVE
WITH BATTERY BACKUP
Solar Home Systems
Lighting
A Better Source of Light
LED Lights
Solar Lanterns
110,000 units have been sold worldwide, totaling
more than 0.6 MW of installed power and making it
one of the fastest growing PV markets
Television
Health Care
• 3 million children die each
year from diseases that are
preventable with currently
available vaccines.
• 30 million infants each year do
not have access to basic
immunization services.
 Education
• Improves literacy
• Increases access to
news and
information
• Enables evening
education classes
 Social Applications
,
150-200 W, deep-cycle batteries, Many countries (WHO
Health clinics small refrigerator/freezer standards)
Potable water 1 - 4 kW, pump, reservoir
Many countries
pumping (generally no batteries needed)
Many countries, e.g
Water PV to power UV or ozone water
China, Honduras,
purification purifiers (0.2-0.3 Wh/liter)
Mexico, West Bank
1 - 2 kW needed to power reverse Italy, Japan, USA,
Water
osmosis or other water Australia, Saudi
desalination desalination units for 1m 3 per day United Arab Emirates
Schools and many countries: China,
PV systems for powering lights,
Training TV/VCR, PCs
Honduras, Mexico, the
centers Philippines, Cuba
India, Indonesia, the
Street lights 35/70 W, battery, 1 or 2 CFL
Philippines, Brazil
Water Pumping
Tools
Commercial Applications
100-150 W system with DC Dominican Republic,
Village cinema lights and Color TV + VCR Vietnam, Honduras,
or satellite Cuba
0.5 - 3 kW systems with DC Morocco, Philippines,
Battery charging battery chargers for sales Senegal, Thailand,
stations to households and micro- Vietnam, India,
enterprises Bangladesh
Rent-out of solar
lanterns for special Solar lanterns (5 - 10W) India
occasions
Lights, radio/TV and 20-300 W, electronics, many countries, incl.
small appliances for battery, appliance, inverter Karaoke bar in
restaurants, shops (if necessary) Philippines

Solar lanterns, SHSs and Nepal, India, Peru,

Trekking / eco-
larger PV systems for lights Trinidad and Tobago,
tourism lodges and refrigeration Mexico
Micro-Enterprise
Battery Charging Stations

Colombia
Mali
Morocco
the Philippines
Thailand
Senegal
Vietnam
1 kW system Botswana
 Thailand:
A
Government-
sponsored
program
installed over
1000 BCS

The customers only have to pay the charging fees to recharge their car
batteries. They can upgrade and buy a solar panel in a later stage.

The BCS are locally operated, creating employment opportunities and

potential business for local entrepreneurs.
Microenterprise Applications

50-100 W system with DC

Several countries (i.e. NREL
Tailor lights and electric sewing
Projects)
machine

Electronic 50-100 W for DC lights and Bangladesh, India,

repair soldering iron Indonesia

Gold 60 W system with DC lights

Vietnam (SELF project)
jewelry and soldering iron

Bicycle 80 W system for DC lights and

Vietnam - Ha Tinh Province
repair DC small drill

60-100 W system for DC lights Nepal, Vietnam

Handicrafts and DC small tools
 Sustainability
“The 3 A’s Analysis” – Practical Action

Affordable – to people living on $1 a day?

Accessible – to people in marginal communities
in developing countries?
Appropriate – adapted to the social,
economic, and cultural needs?
•Is it environmentally sustainable?
•Can it made, developed and managed by
local people and their institutions?
Implementing Renewable Energy
Projects in the Developing World
 Identifying Partners
 Determining Energy Needs
 Choosing Appropriate Technology
 Developing a Financing Scheme
 Designing a Training Program
 Setting Up Necessary Infrastructure
 Securing Funding
 Recognizing Social & Cultural Issues
 Evaluating the Project
Financing Household Solar Energy
in the
Developing World
What can rural populations afford?:
• 5% can pay cash for a solar home system

• 20 - 30% can afford a solar home system with short or

medium term credit

• 25% can afford a solar home system with long term

credit or leasing

The average monthly expenditure for

lighting and entertainment ranges
between $2.30 for low income
families to $17.60 for
upper income families
 Monthly Expenditures on Energy
by Typical Rural Families in Non-electrified Areas

Socio-
economic Lower-middle
Low income Middle income Upper income
group income

Energy-
Kerosene Kerosene Kerosene Kerosene
using lamp
Candle
lamp
Candle
lamp
Candle Radio
lamp
Candle Radio Car Battery for TV
appliances

Monthly 8 16.8 10 2 Battery

3 liters 4 6 liters 8 9 liters 10 8
consumption batteries liters batteries recharges Amortization

Monthly cost
1.70 .60 2.80 1.00 4.25 1.25 2.50 7.90 1.00 3.10 2.50 3.10
(US$)

Total 2.30 3.80 8.00 17.60

Source: World Bank ESMAP Technical Paper 009, 2000

 Commercial Banks can Finance SHS if:

• The SHS is considered eligible for bank financing

- System must be shown to be income-producing

• Bank staff are familiar with household PV systems

• Borrowers have convenient access to banks

• Loan application procedures are

streamlined

• Collateral barriers are addressed

- Treat the PV module as collateral

• Repayment schedules are flexible

Finance Options

• Energy Service Companies (ESCOs)

Utilities, Cooperatives, NGOs, Private Companies, buy solar
systems in bulk, retain ownership, and bill for services. They sell
the electricity, not the panels.

• Leasing Arrangements
Private Companies, Cooperatives, NGOs retain ownership of solar
system until they are paid for by customers over a period of time.

Often use seed money from government or donor grants to

establish revolving fund.

• Cash or Credit Sales to Consumers

Banks and dealers provide short-term financing at
market rates to help consumers finance systems.
 Financing Characteristics of 4
Different Models
Down Loan
Financing Affordability Interest Repay- Payment / Security / Risk to Administ System
Option Rate ment Connection Collateral Lender Cost Ownership
Period Fee
ESCO owns
ESCO High Low Long Low System Low High generation
components,
rest by user

Lease /
Moderate Medium Medium Moderate System Moderate Moderate User (at end
Purchase of lease)

System
Consumer Low High Short High and/or High Moderate User
other
collateral

Cash Sales Low - - Full Cost at None - Low User

Purchase
 Revolving Credit Funds
Local technicians
install systems,
local association
collects payments

Community
members make Homes selected,
payments back Installation begins
into credit fund

Local group
manages revolving
credit fund

Seed money from donor

 Leasing Program Suggestions:

Repayment
Repayment periods for consumer loans should be short:
• If the repayment period is less than the average life of the
battery (3 years) borrowers will have the necessary funds by
the time the battery will need to be replaced.

Gradually increase lending levels

By starting out with small loans and rewarding successful repayment
histories with larger loans, repayment is more successful

Interest Rates
High enough to ensure financial viability of the commercial enterprise

Low enough to attract customers

 Leasing Program Suggestions:

Down Payments

The down payment should cover a significant

portion of the system cost:
• Down payment can equal cost of transport, labor, wiring and
fixtures to ensure full recovery in case of default.

• Down payment can equal cost of battery, to select out those

customers capable of meeting battery replacement costs.

A large down payment is a useful mechanism

for screening customers and establishing
creditworthiness, yet it limits the number of
households that can afford the system.
Leasing Program Suggestions:

Enforcing Repayments
·
Collection by local representatives
Societal pressures to honor one’s debt may be high

· Collection by outside organization

Impartial outside organization may be necessary if the
community doesn’t have strong societal pressures

· Disconnect Policy
Disconnecting the system for extended nonpayment
of fees can be an effective tool for cost recovery
Leasing Program Suggestions:

Financing Battery Replacements

• A monthly payment can include a small charge, held in

escrow, to pay for replacement batteries
Example: Placing $1.50/month in an escrow account for
3 years will generate the $50 necessary to purchase a
new battery

• If the battery needs to be replaced in less than 3 years, the

consumer can pay the difference.

• If the life of the battery exceeds three years, the consumer

can receive a rebate.
 Leasing Program Suggestions:

Serving Customers with Limited Ability to Pay

Financing Options
· Flexible repayment

· Fee schedules that match customers

income streams
Farmers make semi-annual or quarterly
payments, salaried workers make monthly
payments

· Extending the repayment period

 Trade-Up Programs:

• Where credit programs don’t work

• Household systems start with the smallest system they can afford

• As they save up more money and their energy demand grows, they
can trade in the smaller system for a larger system.
 Dominican
Country Mexico Indonesia Zimbabwe Bolivia China Kenya Morocco
Republic

PRONASOL
BANPRES SO-BASEC PPER,
and private Altiplano Gansu SELF and Private
Program & other GEF SEP, EDF
sector Enersol Region other programs Market
programs programs
initiatives
Gov’t Gov’t
Government Gov’t Utility Gov’t
Utility NGO NGO NGO Bank
Financing Utility
Int’l Agency Bank Int’l Agency Int’l
Bank Bank Int’l Agency
Int’l Agency Agency

#
35,000 40,000 5,000 2,000 1,500 20,000 20,000 5,000
installed

Int’l
Int’l funds funding
National Int’l funding for
provide for
bank local revolving
Gov’t program revolving Int’l finance Locally revolving
Financing provides funds, gov’t Cash
& local credit fund seed for revolving funded credit funds,
Scheme cooperatives
revolving
money, funds cooperatives
program sales
bank
fund seed including private
NGO’s financing
money financing
administer and some
grants
Terms for SHS Financing
in Selected Countries
Country Type of Source of Down Annual Repayment
Financing Funds Payment Interest Period
(% of SHS Rate (years)
Cost) (%)
Indonesia Leasing Government 5 0 10

Indonesia Consumer Supplier 50 18 2

Tuvalu ESCO NGO 10 Monthly -

service charge
Sri Lanka Leasing Bank 20 18 5

Swaziland Leasing Bank 25 2% above 3

prime
Philippines ESCO Government 25 15 -

Dominican Consumer Bank 25 20 - 36 1-2

Republic
Rwanda Leasing Credit 20 9 1-3
Union
 Case Study

Grameen Bank

One branch – 15 – 22 villages

Centers – Local centers in each village
Groups – 5 people (usually women)
2 get loans, after 6 weeks others get loans

Average loan size - $160

• No collateral
• Repayable in weekly installments over 1 year
• Eligibility for subsequent loan dependant on full
repayment of first loan
• Relies on peer pressure

“Credit is not an advantage, it is a right of the poorest of society”

 Case Study

Grameen Shakti

SHS – 13 w to 225 w
Mode - 1:
1. The customer pays 15% of the total price as down payment.

2. The remaining 85% of the cost is paid within 36 months with

12% service charge.

Mode - 2:
1. The customer pays 25% of the total price as down payment.

2. The remaining 75% of the cost is paid within 24 months with 8%

service charge.

Mode - 3:
4% discount is allowed in case of cash purchase.
 Case Study

Kenya Project

Energy Alternatives Africa, Kenya Rural Enterprise Program

System Cost: $500

Down payment: 50% + 25% on installation
Repayment period: 6 months
Interest rate: 0% if paid within 3 months
15% after 3 months

Non-payment: repossession if payment is not complete

within 6 months.
 Case Study

Sri Lanka Project

Solar Electric Light Fund, Sarvodaya Shramadana Movement

Systems: 18 watt or 36 watt

System Cost: $300 or $450
Down payment: 10%
Repayment period: 5 years
Interest rate: 10%

• A survey was undertaken to assess people’s ability to pay

• Revolving fund seeded with international foundation money
• Individuals are required to provide personal security from 2 other
society members.
 Case Study

Indonesia Project

Indonesian Government, Dutch PV company

Systems: 40 watts
System Cost: $400
Down payment: 35%
Repayment period: 10 years
Interest rate: 0%

• Seed money from Indonesian government

• Before PV – Villagers were spending $7 - $16 per month on oil
lamps for lighting.
• SHS owners pay $8/month for the PV system
• 20,000 – 30,000 SHS systems in Indonesia
 Case Study

Honduras Project
Soluz Honduras

System Sizes: 30 – 100 watts

System Costs: $600 - $1500
Repayment period: 12 months
Interest: 3%

• Installations done by Soluz Installation technicians. Customers are free to

pay the company to do the maintenance for them.
• The customers are provided with a verbal explanation and printed
materials to help them use the system properly.
• The complete systems are provided with a 90-day warranty on all
components (including switches and lamps).
 Case Study
Honduras Project
Soluz Honduras

System Sizes: 20 – 100 watts

System Costs: Fee for Service
Monthly Fees: $10 - $20

• The ownership of PV systems is retained indefinitely by the company.

However, the battery is the property of the customer.
• Installations done by Soluz Installation technicians. Maintenance is
done by the company technicians.
• The complete systems are provided with a 90-day warranty on all
components (including switches and lamps).
Designing a Training
Program
 NGO Training

 Technician Training

 End-User Training
Training
 Classroom Training
 Install / Lab Training
 Troubleshooting
 Maintenance
 Safety!!
 Real Life Examples
Why is Training Key?
Securing Funding

 Solar Development Group

 E & Co
 Rural Energy Enterprise Development
 Global Environmental Facility
 Multilateral Development Banks
 Foundations
 Churches
 Case Studies
 Himalayan Light Foundation – Nepal
 Grupo Fenix – Nicaragua
 Solar Electric Light Fund – Africa, Haiti
 WE CARE Solar – Africa, Haiti
 Cubasolar - Cuba
Himalayan Light Foundation -
Nepal

TM
 HLF

HELP TM
- Home
Employment Lighting
Program

Villagers get a SHS, receive

skill training and then pay for
the cost of the SHS “in
products”

 leading to cash income

generation
 TM

HELP – Benefits

• Reaches the poorest of the poor

• Brings RE and income generation into an integrated approach

with women’s involvement.
• Demonstrates an innovative financial development model for RE
dissemination and income generation
• Provides women with useful skill training.

• Empowers Women by placing the “power to electrify their

families” into their hands

• Displaces the widespread use of expensive kerosene, small

batteries and “diyalo” (fat wood) used for lighting.

Women’s weaving workshop in community building, Jalpa

 Rated as the best development project in
Nepal and among the top 20 in the world by
UNDP
Village women receiving training to make handbags
 HELP – Intended Benefits
TM

• Reaches the poorest of the poor by eliminating the need for asset
collateral  develops and uses social collateral instead.
• Brings RE and income generation into an integrated approach with
women’s involvement.
• Demonstrates an innovative financial development model for RE
dissemination and income generation  encourages replication
• Provides women with useful skill training and brings villagers into
commercial habits of work for benefits received.
• Empowers Women by placing the “power to electrify their families”
into their hands
• Community solar committees have women’s participation and non-
SHS owners as members
• To gradually displace the widespread use of expensive kerosene,
small batteries and “diyalo” (fat wood) used for lighting.
 TM

HELP Projects

Current:
1) “Solar Empowerment Project” in Bongadovan,
Baglung

2) “Paper & Power Project” in Lekhani, Baglung

3) “Paint & Power Project” in Kanpur, Kavre

HELPTM Products
TM
Grupo Fenix – Sabana Grande,
Nicaragua
 PV Manufacturing
 Solar Cookers
 Land Mine Survivors
 Mujeres Solares
 Tienda Verde
 Micro-Loans
History – PV Factory

• 1999 project to reintegrate

landmine victims
• Several members of Totogalpa
trained and community
introduced to solar energy
• Construct and install PV panels
• Fabricated and installed over
500 panels
History – Mujeres Solares
• University students brought solar ovens to
community
• Women responded enthusiastically to the solar ovens
and organized around their use
Solar Center
Solar Center
Solar Center

• Other accomplishments at the Solar Center

• Design and construction of a Clivus composting latrine
• Construction and installation of 15 PV panels totaling 900
watts
• Installation of a Solar Water Pump and Wind Generator
Green Hours
• Each member receives credits for their hours
worked
• Hours can be redeemed to “purchase” items
donated to the group
• Green Hours have set value to the dollar
• All donations are priced
• Members have option of using hours or cash to purchase
donations
• Income generated used to buy items requested for the
next Green Store
Green Hours
• Successes of Green
Hours program
• Recognizes dedication
of members
• Rewards members for
their work
• Creates positive venue
for donations
• Revolving fund for self
sufficiency
 Nano Loans
• Members receive small, interest free loans for
improvement of homes
• Fixed revolving fund
• Repayment of loans comes directly from income
earned housing international visitors
Secondary School
Scholarships
• Defray costs associated with attending
secondary school ($260 per year)
• For children of members
• MST goal is to maintain fund at $4,000
enough for 15 students per year
Solar Oven Workshop
• Build Solar Ovens and
Solar Dryers
• Constructed 120 Solar
Ovens and 7 Solar Dryers
• Continually working on
design for better
performance and lower
cost
• Struggle with cultural
changes required for
widespread acceptance
Solar Products

• Agricultural products processed using Solar Cookers

• Products developed from experimentation of SWT
and volunteers
• Hygienic, improved nutritional value and organic
Solar Restaurant
• Demonstrate use of renewable energy in
preparation of healthy food
• Improved adobes, handmade PV panels, solar
box cookers, parabolic cookers, solar dryers,
biodigestor and fuel efficient stove
• Organic ingredients grown at Solar Center and
the community
• Women directly involved in and supervise
construction, promoting gender equality
Solar Restaurant
Organic Agriculture
• Demonstration of
feasibility of organic
agriculture
• Education of
community in
sustainable land use
practices
• Reforestation of the
community - planted
over 14,000 trees
 We Care Solar
Solar suitcases to improve women’s maternal health care
LED Lamps for Deliveries and Surgeries
LED Headlamps – battery charging
Two Way Radio or cell phone charging
 Solar Suitcase charging station for:
– LED Headlamps for maternity & surgical
staff
– Walkie-Talkies (short range) for
physicians, midwives, and operating
room staff
Before After
Before After
Before After
  Improved Communication
– Immediate Contact
– Reduced Delays
– Patient Status Updates
– Less Referrals Out
 Improved Lighting
– Increased Visibility
– Increased Ease of Procedures
– Increased Safety
 LED headlamps for all night duty staff
 Installation of permanent PV system
in maternity ward, delivery room, and
OR
 Long-range walkie-talkies for all
emergency staff
Solar Electric Light Fund –
Rwanda Health Clinics
 Solar Electric Light Fund –
Rwanda Health Clinics
 Partners in Health – 5 clinics
 Columbia University’s Center for Aids – 15 clinics
 4.4 kW PV system
– State-of-the-art laboratories
– Vaccine refrigeration
– Computer record-keeping
– Satellite communication
– Microscopes
– Blood analysis machines
– Centrifuges
– Portable X-ray machines
– Sterilization devices
– Lighting
Solar Electric Light Fund –
Haiti Health Clinics
 10 Partners in Health Clinics
 10 kW systems w/generator backup
 Cuba – Health Care & Education
Cuba – Health Care & Education
Electrification of rural schools
 2,364 schools
 25 Brigades installed systems and
trained locals in maintenance
 Teachers are in charge of monitoring
battery level
 Each school receives a maintenance
visit every 90 days
 A minor repair shop in each territory
 A larger repair shop in each province
• Lights
• TV
• VCR
• Computer
# students # schools
1 51
2-5 357
6 - 10 483
11 - 20 518
21 - 40 385
>40 180
 Cuba – Health Care & Education
Family Doctor Clinics
– 360 clinics
• Lights
• Vaccine Refrigerator
• 25 W radio phone
• TV
• VCR
 Cuba – Health Care & Education
Video Centers
 1,885 centers
 Capacity:
30 – 50 people
each
 Employment:
4 workers each
7540 new jobs
 2 Lights
 TV
 VCR
 Cuba –
Video Center Educational Programs

• Tobacco & Alcohol Addiction

• Sexually Transmitted Diseases
• Domestic Violence
• AIDS
• Adolescent
Pregnancy
• Healthy Lifestyle
• Breastfeeding
• Consumption of
Vegetables
• Cuban Campesino
Identity & Traditions
• Cuban History
Thank You