Financial Aspects of Stand-alone Solar Power Systems in Sub-Saharan Africa
Abstract
Countries in Sub-Saharan Africa have struggled with low electrification rates in
rural areas. This research examines various methods of achieving higher rural
electrification rates. Among the factors that impede rural electrification via extension of
the grid include high connection costs and locations that are a long distance from the grid.
Other renewable energy technologies such as small hydropower and small wind home
systems also have high initial costs and are limited to implementation under specific
geographic conditions. The rise in popularity of solar PV systems has provided a viable
option for many rural residents. Although initial costs may be high similar to the other
technologies, vendors have put in place mechanisms for payment by installments that
makes the technology affordable for a larger proportion of the population. However,
repayment terms are still short (mostly within a year); therefore the monthly payments
may still be out of reach for some. The modular nature of solar PV systems is also
beneficial since users can buy lower capacity components and add on to their system over
time. The key findings suggest that extension of the payment period for solar PV systems
would make the technology more affordable for a larger segment of the population. In
addition, it proposes future collaboration between solar companies that offer pay-as-yougo
financing solutions with informal financial arrangement groups commonly referred to
as Rotating Savings and Credit Associations (ROSCAs) or Accumulating Savings and
Credit Associations (ASCAs). These partnerships will provide a wider platform to
educate rural residents on the benefits of solar lighting and to encourage members to
purchase these products for their homes.
Table of Contents
Introduction -- Technologies for achieving rural electrification -- Solar photovoltaic technology -- Components of a sustainable solar PV system -- Case studies for pay-as-you-go solar lighting systems -- Conclusion and future work -- Appendix A. Electricity access rates in Africa in 2012 -- Appendix B. Indigo Duo solar home system specifications -- Appendix C. SunnyMoney solar lighting options
Degree
M.S.