Financing mechanisms for solar home systems in developing countries. The role of financing in the dissemination process

Financing mechanisms for solar home systems in developing countries
The role of financing in the dissemination process

Authors: T. Scheutzlich, K. Pertz, W. Klinghammer, M. Scholand, S. Wisniwski, and edited and updated considering comments of Task 9 experts by R. Posorski, K. Pertz and K. Haars IEA-PVPS Task 9 report: Financing mechanisms for solar home systems in developing countries. The role of financing in the dissemination process

Organization: Deutshe Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH

Reference: IEA PVPS T9-01:2002

Date of issue: September 2002

Details: 104 pages: figures, tables; with references and appendices

Type: Report IEA PVPS Task 9

Download: Open or download report as PDF document (1299 kB)

Available from: Task 9 members

Abstract: The lack of financial services for users of Solar Home Systems (SHS) is often regarded as the main barrier for their commercial dissemination and is often the justification for donor assisted programmes. The problem is well-known: the main target group for SHS is the rural population - usually that part of the population with low and/or irregular income, with limited saving potential and with low energy consumption, mainly for non-productive use. The acquisition and operation of a SHS, however, requires a high initial investment and moderate operating and maintenance cost. Financial services for SHS are usually not available or accessible for this target group. The latter is regarded as being one of the main barriers hampering the widespread introduction of SHS in rural areas.

This study wishes to shed some light on the question whether commercial SHS dissemination in remote rural areas could be made easier if financial services were available. It is based on the thesis that carefully designed target-group-oriented financial services may speed up the widespread dissemination of SHS. This thesis assumes that any financial services have to fit into existing financial structures in order to be sustainable and to avoid distortions of local financial systems.

[ Top ]

Authors:	T. Scheutzlich, K. Pertz, W. Klinghammer, M. Scholand, S. Wisniwski, and edited and updated considering comments of Task 9 experts by R. Posorski, K. Pertz and K. Haars
Organization:	Deutshe Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH
Reference:	IEA PVPS T9-01:2002
Date of issue:	September 2002
Details:	104 pages: figures, tables; with references and appendices
Type:	Report IEA PVPS Task 9
Download:	Open or download report as PDF document (1299 kB)
Available from:	Task 9 members
Abstract:	The lack of financial services for users of Solar Home Systems (SHS) is often regarded as the main barrier for their commercial dissemination and is often the justification for donor assisted programmes. The problem is well-known: the main target group for SHS is the rural population - usually that part of the population with low and/or irregular income, with limited saving potential and with low energy consumption, mainly for non-productive use. The acquisition and operation of a SHS, however, requires a high initial investment and moderate operating and maintenance cost. Financial services for SHS are usually not available or accessible for this target group. The latter is regarded as being one of the main barriers hampering the widespread introduction of SHS in rural areas.
	This study wishes to shed some light on the question whether commercial SHS dissemination in remote rural areas could be made easier if financial services were available. It is based on the thesis that carefully designed target-group-oriented financial services may speed up the widespread dissemination of SHS. This thesis assumes that any financial services have to fit into existing financial structures in order to be sustainable and to avoid distortions of local financial systems.