Académique Documents
Professionnel Documents
Culture Documents
der
Diplomarbeit
vorgelegt von Klara Lindner im Studiengang Wirtschaftsingenieurwesen in Zusammenarbeit mit Eingereicht bei Prof. Dr.-Ing. Rolf Hanitsch Institut fr Energie- und Automatisierungstechnik Fachgebiet Elektrische Antriebstechnik Berlin, 16. September 2010
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Abstract
In
general,
Photovoltaic
systems
are
built
to
last
and
require
little
maintenance.
However,
field
studies
have
revealed
a
high
number
of
system
failures,
which
are
linked
to
a
lack
of
quality
assurance.
This
paper
depicts
problems
that
occur
with
solar
home
systems
(SHS)
disseminated
on
a
market-based
approach.
The
research
methodology
is
based
on
three
pillars:
A
literature
review
covers
documented
projects
around
the
world
dealing
with
solar
home
system
dissemination.
Expert
practitioners
drawn
together
in
a
workshop
have
shared
valuable
experiences,
while
a
trip
to
rural
Tanzania
has
been
carried
out
to
collect
personal
insights
from
the
field.
They
undermined
the
field
research
from
my
colleague
Tobias
Rothenwnder,
whose
results
served
as
a
valuable
contribution
to
this
paper.
SHS
have
been
distributed
all
across
the
developing
world
and
associated
challenges
differ
strongly
among
countries.
The
literature
review
covers
various
regions,
whereas
first-hand
data
collected
in
field
trips
is
limited
to
East
Africa
and
was
used
to
carry
out
an
analysis
of
qualitative
nature.
Also,
this
paper
puts
a
focus
on
the
technically
sound
performance
of
the
SHS
and
takes
financial
issues
only
into
account,
when
they
are
linked
to
the
functionality
of
the
system.
To
facilitate
continuous
sharing
of
challenges
between
different
stakeholders,
common
quality
issues
are
grouped
into
four
categories
according
to
their
cause:
component
quality,
system
integration,
business
model
and
framework
conditions.
While
the
solar
component
and
the
user
are
often
initially
blamed
for
system
failure,
it
shows
that
difficulties
arise
at
various
levels
of
the
SHS
life
cycle
-
this
paper
highlights
focus
problems
within
each
stage.
As
a
root,
three
underlying
challenges
are
suggested:
maladjusted
systems,
inadequate
installations
and
a
disorganized
after-sales
service.
A
possible
instrument
to
assure
better
quality
in
this
context
is
the
enforcement
of
standards
also
in
market-based
SHS
sales.
Microfinance
institutions
are
assumed
as
an
important
partner,
because
only
clients
with
a
functioning
system
are
willing
to
repay
the
linked
loan.
As
most
of
these
institutions
lack
technical
knowledge,
they
can
only
become
an
agent
for
their
clients
wish
for
customer
protection,
if
an
independent
facility
certifies
the
systems
functionality.
The
given
recommendation
is
that
a
sustainable
approach
for
solar
home
system
dissemination
should
not
attempt
to
increase
the
affordability
by
developing
cheaper
products
but
by
offering
end-user
finance
and
by
fostering
income-generating
activities,
which
facilitate
paying
for
good
quality
systems
and
make
a
service
infrastructure
viable.
Keywords:
solar
home
systems;
quality;
microfinance;
rural
energy;
standards;
certification;
service;
energy
access;
developing
countries.
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Table of Contents
1
INTRODUCTION
4
4
4
6
6
6
7
7
8
9
10
11
12
13
14
14
15
16
16
16
18
19
19
19
20
20
21
21
22
22
22
22
23
23
24
2 RESEARCH OBJECTIVES 3 METHODS 4 THEORY 4.1 SOLAR HOME SYSTEMS 4.1.1 ADVANTAGES AND LIMITATIONS OF THE TECHNOLOGY 4.1.2 PROVIDED FUNCTIONALITY 4.1.3 BENEFITS 4.1.4 FIELDS OF APPLICATION 4.2 GENERAL QUALITY ISSUES 5 RESULTS 5.1.1 PROBLEM ANALYSIS 5.2 FOCUS PROBLEMS ALONG THE SHS LIFE CYCLE 5.2.1 COMPONENT PRODUCTION 5.2.2 SYSTEM INTEGRATION 5.2.3 PRE-SALES 5.2.4 POINT-OF-SALE 5.2.5 USE 5.2.6 AFTER-SALES 5.2.7 END-OF-LIFE 5.3 STANDARDIZATION OF SHS 5.4 TARGETED TESTING 5.4.1 FUNCTIONALITY OF THE SYSTEM 5.4.2 BATTERY PERFORMANCE 5.4.3 PV PANEL PERFORMANCE ON-SITE 5.5 LOCAL TEST FACILITY 5.6 MICROFINANCING SOLAR HOME SYSTEMS 5.6.1 ADVANTAGES ON ALL SIDES 6 DISCUSSION 6.1 PROBLEM EVALUATION 6.1.1 PROPOSALS TO ASSURE QUALITY 6.1.2 LOCAL TESTING FACILITY 6.2 CORROBORATION OF HYPOTHESIS 6.3 KEY INSIGHT 7 BIBLIOGRAPHY
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1 Introduction
Currently,
close
to
1.5
billion
people
in
developing
countries
have
no
access
to
electricity1.
Those
affected
either
live
in
rural
areas
without
connection
to
electrical
power
grids
or
in
urban
areas
with
inadequate
utility
systems
and
have
to
rely
on
diesel
gen-sets,
kerosene
lamps
or
candles
instead.
Because
of
the
low
population
density
in
remote
regions,
extending
the
grid
is
often
not
financially
viable.
Concerns
over
environmental
protection
have
led
to
renewable
energy
technologies
being
identified
as
a
powerful
option
for
decentralized
energy
generation.
The
research
focuses
on
solar
home
systems
(SHS),
which
are
small
single-home
Photovoltaic
systems
that
provide
electricity
for
lighting
and
other
low-power
appliances.
While
solar
technologies
have
proven
to
be
cost-effective
in
areas
with
high
irradiation
levels,
the
up-front
investment
remains
a
substantial
restriction
for
potential
users.
Electrification
programs
funded
by
international
donor
organizations
have
helped
to
promote
the
dissemination
of
solar
home
systems
on
a
large
scale,
but
a
number
of
studies
have
put
the
sustainability
of
this
approach
in
question.
A
market-based
approach
is
to
incorporate
microfinance
in
the
SHS
promotion
this
instrument
breaks
down
the
high
initial
cost
into
a
number
of
small
credit
instalments
and
allows
individuals
to
purchase
a
system
themselves.
Users
subsequently
acquire
a
sense
of
ownership
over
the
technology
and
are
more
likely
to
take
better
care
of
it.
However,
most
market-based
sales
of
SHS
happen
on
a
much
lower
scale
than
donor-funded
projects.
They
lack
a
supervising
organisation,
which
incorporates
the
necessary
understanding
about
the
technology.
Most
sales
are
done
through
smaller
private
companies
that
are
very
price-sensitive,
a
circumstance
directing
towards
a
trade-off
between
quality
and
cost.
While
valuable
lessons
learnt
have
been
obtained
in
various
large-scale
programs,
this
knowledge
has
not
trickled
down
to
the
grassroots
and
these
local
entrepreneurs
are
neither
aware
of
the
long-term
benefits
that
good
quality
products
and
services
have
nor
do
they
know
how
to
offer
them.
2 Research Objectives
In
due
course,
three
research
questions
were
put
forward.
The
first
aim
is
to
collect
problems
that
arise
when
solar
home
systems
are
disseminated
in
the
open
market
and
to
cluster
them
in
a
comprehensive
model.
In
addition
to
that,
existing
standardization
efforts
from
official
quality
assurance
organizations
as
well
as
best
practice
projects
are
researched
to
find
means
to
address
these
problems.
As
a
last
task,
it
is
to
be
found
out,
whether
a
local
test
laboratory
is
a
useful
instrument
to
improve
the
quality
of
solar
home
system
installations
in
developing
countries.
3 Methods
While
governmental
and
donor-based
projects
for
solar
home
system
dissemination
must
be
evaluated
in
order
to
secure
funding
and
are
hence
documented
systematically,
this
is
not
the
case
for
commercial
SHS
distribution.
In
order
to
achieve
the
set
aim
in
a
structured
way,
a
three-step
approach
has
been
chosen,
which
was
developed
by
the
United
Nations
Global
1
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Environment
Facility
(GEF).
Painulys
framework
to
identify
relevant
barriers
for
a
renewable
energy
technology
in
developing
countries
consists
of
a
literature
survey,
site
visits
and
interaction
with
stakeholders
(Painuly,
2001).
In
coherence
with
that,
a
thorough
literature
review
forms
the
base
of
the
analysis.
On
the
one
hand,
general
examinations
of
challenges
in
quality
assurance
have
been
consulted
on
a
global
level
through
evaluations
carried
out
by
the
World
Bank
and
other
donor-funded
organizations.
Furthermore,
East
Africa
has
been
chosen
as
target
region,
which
lead
to
more
detailed
readings
of
project
reports
specifically
about
Kenya,
Uganda
and
Tanzania.
As
solar
home
systems
have
first
been
microfinanced
in
South
Asia,
surveys
from
Bangladesh
and
Sri
Lanka
serve
alongside
as
a
source
for
long-term
observations
and
successful
standardization
efforts.
Secondly,
field
research
was
carried
out
by
a
colleague
from
MicroEnergy
International2.
In
addition
to
that,
the
author
conducted
a
visit
to
the
target
region,
which
reaffirmed
the
findings
and
brought
up
first- hand
information
within
a
very
specific
context:
Interviews
with
end-users
(see
Figure
1)
as
well
as
solar
companies
in
rural
Tanzania
and
Uganda
may
be
of
limited
overall
validity
but
provide
indispensable
insights
about
the
real
world.
Figure 1 Author interviewing SHS users in Arusha, TZ
In addition to that, a workshop with 19 experts was held to collect and compare various experiences across sub-Sahara Africa and Asia3. Personal interviews were carried out thereafter with the participants that provided insights about potential risks and limitations of SHS dissemination in different contexts. Using scientific reasoning, a qualitative evaluation, albeit limited, of emerging problems was carried out, the results of which serve as a foundation enabling the author to propose improvements linked to standardization and certification activities as followings.
2 3
For details about the field research, refer to Rothenwnders report (Rothenwnder, 2009) For details, a summary of the workshop is available upon request.
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4 Theory
4.1 Solar Home Systems
Solar
electric
systems
can
vary
in
size
-
this
paper
deals
with
solar
home
systems,
which
are
small
autonomous
systems
designed
to
provide
individual
households
with
basic
electricity
services.
In
essence,
energy
in
form
of
sunlight
is
captured
and
transformed
to
power
electric
appliances.
As
outlined
in
Figure
2,
the
system
consists
of
a
Photovoltaic
(PV)
module
to
capture
the
sun
light,
a
battery
to
store
it
over
time,
a
battery
charge
controller
that
regulates
the
flow
of
electricity
and
an
electric
load
made
up
of
lights
and
other
appliances
these
need
an
inverter
to
function
in
a
solar
system.
A
typical
SHS
provides
power
for
fluorescent
luminaries,
radio,
TV,
a
fan
or
similar
low-power
appliances
generally
for
about
three
to
five
hours
a
day
(TSC
Bangladesh,
2005).
Figure 2: Solar Home System schematic (own illustration)
4.1.1
In comparison with other means to provide electricity, solar home systems have various advantages: In contrast to other power systems, the PV panel generates electricity in a silent and pollution-free way. As there are no moving parts, the generator itself needs low maintenance. Moreover, the fuel, sunlight, is abundantly available and leads to low operative expenses. In areas without grid connection and low population density, solar home systems are a cost-effective means to provide electricity in a sustainable manner. The local generation lowers transmission losses to a minimum. Due to their modular set-up, SHS can easily be transported even to remote regions and be offered in flexible sizes; individual purchases are possible. In comparison with traditional lighting in these areas, their energy consumption is less and they offer the convenience of switching on and off when needed. (Krauter, 2006) On the other hand, the technology does have certain limitations: Because of the PV panel, its initial cost is very high and most parts need to be imported into developing countries. Their functionality depends on the sun and the system requires energy storage. While the system is environmentally benign during operation, the disposal of the battery at end-of-life remains challenging. Additionally, the generator offers DC only and even though AC appliances may be added together with an inverter, supplying motive power is not possible. The modular and portable characteristics have a downside as well, as this leaves them vulnerable to theft and vandalism. The system is simple but still requires end-user training as well as frequent maintenance, regular replacement of batteries is also necessary. (Sandgren, 2001) (World Bank, 2010) It is very important to communicate those limitations to the end-user to create awareness about proper operation and to prevent dissatisfaction with the technology in the long run.
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4.1.2
Provided Functionality
Most important to end-users however is the functionality that the SHS provides them with. The generated electricity can be used to fulfill various functions that can be classified into private and business purposes. Households commonly use the system to light their home and watch television. Radios may be supplied as well, but as end-users tend to only listen to the radio, when they are out of the house. Radios are rarely connected to the solar home system (Nieuwenhout & Vervaart, 2000). Recent research in various developing countries reveals that the ability to charge mobile phones is another important application for SHS (Rothenwnder, 2009). Likewise, SHS may be used for business purposes. The system can be used indirectly to either light shops after dawn and play music to attract more customers, or to light a workspace and therefore prolong working hours e.g. for a craftsman or a seamstress (Allderdice & Rogers, 2000). It can furthermore be used directly to offer a service. The following graph, based on data from Kenya, illustrates how the number of mobile phone users has increased enormously in Africa and by now exceeds the number of grid-connected households (Dalberg, 2010).
Figure 3 Mobile phone adoption vs. grid connection in Kenya (Dalberg, 2010)
Mobile phone charging can thus be seen as a lucrative service to offer in unelectrified areas.
4.1.3
Benefits
Enabling rural households in off-grid areas to switch from traditional sources of light and electricity to the operation of solar home systems has beneficial impacts, which can be classified into direct and indirect economic effects. (Eiffert, 2002) The term direct refers to the possibility of measuring this effect directly in monetary values. In this context, solar home systems have the potential to substitute the use of battery cells, kerosene for lamps and candles. This can be measured by a decrease in monthly energy
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spending of the end-user. Moreover, the solar home system can be used directly to generate income through the provision of services as outlined in the previous section. (Allderdice & Rogers, 2000) Indirect effects on the other hand are difficult to quantify but nevertheless a gain for the SHS user. The Photovoltaic Power System Program of the International Energy Agency (IEA-PVPS) states that the ability to read after dawn offers a potential to improve the educational level of the households. Moreover, health risks originating from the use of kerosene lamps can be lowered and an increased comfort achieved through the convenience of turning the light on and off when needed and providing a feeling of security at night (McNelis, 2008). Over and above, the provision of modern electricity increases the attractiveness of a life in the village and is hence a powerful tool to decelerate rural exodus (Microenergy International, 2007).
4.1.4
Fields Of Application
The International Energy Agency estimates that close to 1.5 billion people in the developing world have no access to modern electricity sources (IEA, 2010). Sub-Sahara Africa has the lowest electrification level worldwide, with rural electrification rates below 5%. In spite of continuous migration into the cities, World Bank estimations from 2000 show that a majority of 68% resides in rural areas. To provide modern energy services has been therefore seen as a key for development. (Karekezi & Kithyoma, Renewable Energy Strategies for Rural Africa: Is a PV-led Renewable Energy Strategy the Right Approach for Providing Modern Energy to the Rural Poor of Sub-Saharan Africa?, 2002) Despite major electrification programs, further research concludes that gains made in other regions of the world will be largely negated with Africas unelectrified, which are projected to grow to 700 million (Dalberg, 2010).
Conventional grid electrification is not perceived as viable for most of rural Africa, because the national electricity generation cannot keep up with the rising demand and availability of
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transmission is limited. Especially in Southern an Eastern Africa, where the majority of the regions poor population lives in dispersed settlements, decentralized energy technologies are given a big potential (Karekezi & Kithyoma, Renewable Energy Strategies for Rural Africa: Is a PV-led Renewable Energy Strategy the Right Approach for Providing Modern Energy to the Rural Poor of Sub-Saharan Africa?, 2002). As of 2000, estimations vary from 50 to 125 MWp of off-grid PV installed in Africa, whereas solar home systems accounted for approximately 30% of this amount (Nieuwenhout & Vervaart, 2000). Large donor-driven investments in SHS helped drive a compounded annual growth of 13% in the number of installed SHS since then and an analysis based on over 40 SHS Africa surveys and country-specific data suggests a total number of 890,000 systems installed by 2009 (300,000 in 2000, 465,000 in 2005) (Dalberg, 2010).
4.2
A review carried out by the International Energy Agency (IEA) in 2004 concludes the following: In spite of good intentions, many programs implementing Photovoltaics (PV) in developing nations have failed in one way or another, and only a very few, if any, programs can be regarded as all round success stories. A large number of failures can be attributed to lack of quality, both in terms of components and installation quality as well as in the organization and management of implementation programs. (Wilshaw, Bates, & Oldach, 2004) The most comprehensive review of solar home system distribution reports in the developing world has been carried out by F. Niewenhout and was documented in several papers (Nieuwenhout & Vervaart, 2000) (Nieuwenhout, et al., 2000) (Nieuwenhout, et al., 2001). The conclusion is that in spite of the successful dissemination achieved through donor-funded programs, the sustainability of such projects remains in doubt. The reason is that the small- scale distribution on a market-based approach is hardly documented and large projects are screened only in the first or second year also, negative experiences are seldom narrated. Niewenhout states that untargeted subsidies as well as a weak service infrastructure are the main reasons, why the lifetime of many SHS is much shorter than expected. However, he limits his results by noting that the numbers of direct sales hint that most SHS are bought locally and not received through a well-monitored program (Nieuwenhout, et al., 2001). As todays supply is even better, these sales are likely to be even bigger. Recent documentation from the World Bank-program ESMAP further concludes that solar technology has a positive impact on the sustainable development, if paid for by the actual end-user as he acquires a sense of ownership; and this can only be achieved if the SHS actually increase productivity and offer income-generating activities (World Bank, 2010). Discussions with World Bank advisor A. Cabraal will elaborate on these findings at a later stage of this paper. The gtz has carried out well-monitored programs throughout the last two decades, most projects targeting for community empowerment through the electrification of e.g. schools or health clinics. Fahlenbock & Haupt look in their analysis deeply into the technical details that lead to system failures and conclude that not the solar panel but the battery is the most vulnerable component; furthermore, wrong system design in the beginning lead to a shorter lifetime (Fahlenbock & Haupt, 2000). Discussions with Photovoltaic expert N. Pfanner as well as
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10
battery manufacturer P. Zhlsdorf will clarify in the following problem analysis, which real-life issues lead to such technical drawbacks. As the IEA also summarizes in their report from 2003 that every analysed implementation model highlights different success and failure factors, the problem analysis of this paper relied heavily on profound field research done over several weeks by university graduates. Notable is the research carried out in Uganda by Kristjansdottir about proper education about solar technology and Sandgren about the problems linked to the battery component of a solar system (Kristjansdottir, 2003) (Sandgren, 2001). Ultimately, Rothenwnders insights collected in Tanzania and Uganda by assessing microfinanced SHS formed a basis for this papers analysis (Rothenwnder, 2009).
5 Results
A
review
carried
out
by
the
International
Energy
Agency
in
2004
concludes
the
following:
In
spite
of
good
intentions,
many
programs
implementing
Photovoltaics
(PV)
in
developing
nations
have
failed
in
one
way
or
another,
and
only
a
very
few,
if
any,
programs
can
be
regarded
as
all
round
success
stories.
A
large
number
of
failures
can
be
attributed
to
lack
of
quality,
both
in
terms
of
components
and
installation
quality
as
well
as
in
the
organization
and
management
of
implementation
programs.
(Wilshaw,
Bates,
&
Oldach,
2004)
The aim of the proposed model is to summarize the generally stated problems of the consulted literature and then connect it to real-life experiences, which have been made by various practitioners in the field of SHS quality assurance; the results from the field research aim to further enrich the uncovered issues. To increase the visibility and foster further collection and sharing of these challenges, four main clusters have been developed (see
Figure 5). On the technical level, problems that result from the product components themselves are separated from those problems that materialize once the technology is integrated into complete systems. A division on the meta-level is made into problems that emerge from the implemented business model on the one hand and challenges linked to the respective framework conditions on the other hand.
Figure 5: Model outline with 4 problem clusters and their change agent
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11
For each cluster, a dominant change agent is named: while the problems within the business model are to be addressed by the project implementer, enabling framework conditions can only be set by official authorities. The challenges arising from system integration should be tackled by the designated technical staff on-site, while those arising from the individual components have to be taken care of by the product manufacturer.
5.1.1
Problem Analysis
1) Most obvious are problems, which are linked directly to the product itself in this case to the individual parts that make up a solar home system. As the PV panel is the main component of a solar home system, it is often initially blamed for a system breakdown but as various studies reveal, the pure solar part rarely fails (Egido, 2001). Due to their significant portion on the upfront investment, great efforts in assuring quality have been taken in the past. By now, they are highly standardized and commonly certified through internationally validated procedures, which let them become the least problematic part of the system (Nieuwenhout, et al., 2001). The battery on the other hand embodies a great number of issues this is very alarming because when the complete life span of a solar home system is considered, frequent replacements of the battery let it become the most expensive component (Nieuwenhout, et al., 2001). The charge controller makes up only a fraction of the system cost, which lessens its importance in the eyes of many. But because its functionality is crucial to a properly working battery, failures are very severe (Egido, 2001). In various cases, charge controllers that are not suited for high outside temperatures have been chosen for the installation and lead to a lower system performance (Nieuwenhout, et al., 2000). With regard to the SHS load, the absence of suitable appliances has been reported to be most challenging (Laufer, 2010). Within the existing range of appliances, many problems are related to the lighting source, whose quality decreases rapidly or cannot be assured at all, as product imitations have spread widely (Rothenwnder, 2009). 2) Yet even if the best quality components are used, a number of issues arise once those individual parts are integrated into a system, designed and installed locally and put into operation. In terms of system design, a lot of problems originate from misevaluations (Rothenwnder, 2009). Either because assumptions made upfront are inaccurate and lead to unsuited system sizes or because important safety principles are ignored and calculations based on a rule of thumb (Egido, 2001). The outcome may then vary from a minor decrease in usability to a severe drop of service life leading to complete system failure (Fahlenbock & Haupt, 2000). Field experience has shown that the system life decreases significantly, if car batteries instead of appropriate deep-cycle batteries are used (Kristjansdottir, 2003). According to Kristjansdottir, the origin of early system failure can be traced back to the wrong installation of the charge controller: a study that checked 20 different charge controller from 7 countries stated that none of those regulators disconnected the battery as it should; even more alarming is his comment that sometimes the technician himself bypasses the regulator to allow for deeper discharge of the battery. (Kristjansdottir, 2003) In due course, problems arise once the system is put into use. While constant overuse or tempering with the system leads to a shorter lifetime, other challenges are connected to the limited availability of productive appliances or a lack of feedback potential (Rothenwnder,
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2009). Nieuwenhout states that an early battery failure is mostly only a symptom of other problems and as a quick replacement does fix the system, complete checks to insure system functionality remain scarce (Nieuwenhout, et al., 2000). 3) The chosen business model defines the way the solar home systems get to the end-user, starting with pre-sales activities such as product testing through training and financing to after-sales services. Many of the challenges that have been reported originate from the partnership that is needed in most cases of coupled microfinance and solar home system dissemination. Roles are not clearly allocated, risks are shared unevenly and responsibilities are moved back and forth from partner to partner (Kebir, Microfinance & Energy, 2008). Marketing activities do not follow organized planning and in order to increase the willingness- to-pay, unrealistic promises are made; Sandgren for example reports that in Uganda, potential clients were convinced by implying that not only lighting and radio or TV are possible, but also ironing and cooking, as soon as more PV panels are added at a later stage (Sandgren, 2001). It is challenging to find suitable employees in the right quantity in rural areas to carry out necessary services such as raising awareness through proper marketing and training of all stakeholders (Nieuwenhout & Vervaart, 2000). The problem most pressing however, is reported to be the provision of proper maintenance and repair: If a system is broken, in many cases the end-user is blamed for incorrect operation, overuse or skipping routine maintenance activities (Sandgren, 2001). At the end of system-life, the issue of battery disposal is usually not covered by the technology provider. End-users are not given information on health and environmental risks about the materials within and either leave the battery in their home or burn it with the regular waste. (Sandgren, 2001) 4) A number of external conditions set a framework in which the particular business model has to be placed in. Those realities may derive from the respective location, for example regional climatic conditions, can be formed by the actual public policy or are set by the situation on- site. In various cases, a look into the respective public policy environment shows that oftentimes a lack of institutional involvement leads to difficulties in scaling up SHS dissemination (Nieuwenhout, et al., 2001). Examples for this are the unavailability of mechanisms to disseminate information or a lack of strong measures and enforcement capacities against product imitations (Painuly, 2001). Depending on the economic participation of potential SHS users, the entrepreneurial environment may play for or against their widespread implementation. Solar home systems are dependent on favourable weather conditions, a frequently stated drawback, because long rainy seasons are often not considered in the planning process (Rothenwnder, 2009). With regard to the infrastructure, difficulties arise from a limited road accessibility, making it hard to transport goods into rural areas. Moreover, limited communication infrastructure hinders various commercial activities (Painuly, 2001).
5.2
While
the
cluster
model4
serves
as
a
tool
to
visualize
and
share
a
variety
of
problems
related
to
solar
home
systems,
the
most
profound
issues
are
described
along
the
SHS
life
cycle.
This
4
The complete list of problems in the cluster model is available upon request.
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section draws from personal experiences made by experts and field researches and can better be attached to a life stage of the SHS rather than to one of the general problem clusters. The applied paradigm (see Figure 6) is made up of seven different stages, starting with the production of each component as first of these. After system integration and pre-sale activities such as testing and marketing, the product shifts from the seller to the end-user at the point-of sale. Then, the SHS is sized accordingly, put into operation at the use-stage and needs after- sales services until the components are disposed of on life cycle completion.
5.2.1
Component Production
In the very first stage, the use of bad quality product components carries a great risk of ruining the reputation of solar home systems. If one part does not function as it is supposed to, the entire system becomes weak and cannot deliver the desired output. Field research indicates that components are not well-adapted to local conditions, as for example charge controllers cease to work under high ambient temperatures (see Figure Figure 7), because the electronic circuit is encapsulated (Rothenwnder, 2009).
Additionally, components may be of good quality, but their long-term performance under typical SHS conditions is not ensured and especially the battery has repeatedly been stated as unreliable element. But even if awareness about the need for quality exists, counterfeiting has spread widely and local implementers as well as end-users are unsure whether or not they deal with product imitations. This may be exemplified by the looking into the decision-making
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process for the PV generator. Amorphous panels are advantageous over crystalline panels for a number of reasons: They may have a smaller power output under standard test conditions, but the material can handle higher ambient temperatures better and catch more energy from scattered radiation during rainy season, which makes is more suitable for the target region. Seeing that they are also less expensive, their dissemination could be much higher - but due to the limited ability of checking panels in the field, traditional crystalline modules are preferred, as their quality is sufficient even when product imitations are used (Schnuurhuizen, 2010).
5.2.2
System Integration
Once
all
components
are
integrated
into
a
complete
system,
product
imitation
again
is
the
issue
most
worrying.
Besides
imitations
of
light
bulbs
and
batteries,
fake
cabling
material
as
pictured
in
Figure
8has
been
reported
in
various
cases
(Rothenwnder,
2009).
Figure 8 Comparison Cable Diameter 2.5 mm2 [Blue: Germany, Red/Black: Tanzania] (Rothenwnder, 2009)
While this is one of the cheapest BOS- components, it is of no lesser importance than the others if imitations are used that do not really have the marked diameter, the voltage drop within the electric circuit can severely damage the system. Another challenge is to match the right components. Whereas cheaper automotive batteries are used instead of deep-cycle tubular lead-acid batteries and shorten the system life significantly, improper system calculations oftentimes leave out safety factors like days of autonomy and a certain allowed depth of battery discharge and further weaken the system. (Pfanner, 2010)
5.2.3
Pre-Sales
A distribution chain starting with a global manufacturer in Germany or China and ending in a remote village in Central Africa may become very complex and hard to manage; trade barriers, such as high import taxes on the components, hinder the procurement even more (Painuly, 2001). Experts further state that finding proper means of transportation and monitoring the correct distribution is a challenge (Cabraal, 2010). In terms of product testing, the problem is that products are tested with the trial-and-error method on the back of end-users, because proper knowledge about his true needs and abilities is missing on the manufacturers side (Namazzi, 2010). Laboratory testing is not widespread in the developing world as needed equipment, such as flash solar simulators are very costly (Pfanner, 2010). Thirdly, the marketing concept is ill-conceived in many cases: Statements such as one-in-a-lifetime- investment generate unrealistic expectations and lead to annoyance as soon as battery replacements become necessary. Furthermore, if SHS examples made up of small PV panels and big TV sets are used for advertisement through village presentations, this induces a wrong picture within potential customers (Hankins, 2010) (Schnuurhuizen, 2010).
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5.2.4
Point-of-Sale
At the point-of-sale, the high upfront-investment remains as a big issue. While the incorporation of microcredits lowers this barrier, the following illustration highlights that there are not enough microfinance institutions present in African rural areas to work with (Dalberg, 2010).
Savings
made
through
less
spending
on
traditional
fuel
like
kerosene
are
not
enough
to
pay
back
the
loan
within
the
short
credit
period
many
microfinance
institutions
demand.
Furthermore,
the
need
to
replace
the
battery
during
system
lifetime
is
not
communicated
properly
and
thus
no
savings
set
aside
for
this
event
(Rothenwnder,
2009).
Another
challenge
arises
once
the
system
is
customized
for
the
client
the
technical
assessment
of
user
electricity
needs
and
the
economic
assessment
of
his
financial
abilities
are
not
synced
and
lead
to
dissatisfaction
on
either
the
end-users
or
the
MFIs
side.
Even
worse
cases
have
been
reported,
where
the
system
is
purposely
either
oversized
to
receive
higher
subsidies
or
undersized
to
patronize
the
end-user.
In
addition
to
that,
the
lack
of
quality
installations
further
reduces
the
system
lifetime
at
this
stage
-
Figure
10
shows
a
typical
result.
The
designated
technician
is
improperly
trained
and
ill-equipped
many
installations
are
carried
out
with
as
little
as
a
screwdriver,
flat
pliers
and
a
knife
(Rothenwnder,
2009).
Figure 10 Bad quality installation of a SHS
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5.2.5
Use
Solar
home
systems
are
made
up
of
different
components
and
only
function
as
good
as
its
weakest
link.
Many
times,
the
SHS
works
properly
in
the
beginning
but
starts
to
malfunction
in
the
long
run
as
its
components
are
not
harmonized
with
each
other
and
its
environment.
Besides
this
technical
challenge,
a
financial
challenge
is
of
great
importance:
To
cope
with
the
need
to
repay
the
loan
within
the
demanded
period,
the
SHS
should
induce
increased
income
generation
in
the
use
phase.
But
as
proper
DC
appliances
as
well
as
knowledge
about
entrepreneurial
activities
linked
to
electricity
lack,
the
client
does
not
take
advantage
of
potential
business
opportunities.
The
biggest
problem
in
that
lifecycle
stage
is
to
ensure
proper
maintenance
of
the
system.
The
end-user
rarely
receives
proper
training
on
maintenance
tasks
such
as
cleaning
dust
off
the
PV
panels
(see
Figure
11)and
refilling
the
lead-acid
battery
with
distilled
water
(Rothenwnder,
2009).
In
addition
to
that,
off-grid
solar
systems
are
in
many
cases
seen
as
a
temporary
solution
that
loses
value
once
the
grid
arrives
at
the
location
because
of
this
perception,
even
fostered
by
promises
frequently
made
by
local
governments,
it
becomes
difficult
for
small
technical
companies
to
defend
long-lasting
and
expensive
systems
(Namazzi,
2010).
Figure 11 Dusty Module Lowers PV Panel Efficiency
5.2.6
After-Sales
Considering after-sales services, the root of most problems lies in the allocation of roles between both partners, the solar company on the one hand and the microfinance institution on the other (Namazzi, 2010). The responsibility to act on user complaints is pushed to and fro and leaves the end-user uncertain about what to do or whom to contact. As systems are not monitored properly, it remains unclear, whether the user tempered with the system, for example through by-passing the charge controller, or if the technology itself has caused a failure, and warranty enforcement becomes a challenging task. Most clients go through several credit cycles with the MFI and are afraid to lose their reputation, if they do not pay their instalment as protest measure against broken systems. In very remote regions, spare parts are simply not available even though the end-user would pay for them and self-made repairs, e.g. replacing a blown fuse with metal thread, exacerbate the problem (Sandgren, 2001).
5.2.7
End-of-Life
At the end of the system life, the biggest issue is the disposal of the battery. The material within is not only environmentally harmful but also valuable when recycled, but nevertheless
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most of them end up being dumped or burned with the household trash. As systems are not traced, the component manufacturer is not able to receive feedback about the product and can therefore not include user experiences into design iterations (Zhlsdorf, 2010). For a better overview, all focus problems are illustrated along the lifecycle of a solar home system in Figure 12.
Taken together, these results imply three underlying assumptions: 1. Maladjusted systems 2. Inadequate installations 3. Disorganized after-sales service The first statement summarizes a number of reported problems charge controllers overheat due to ambient temperatures, they are not adapted to, batteries have a much shorter life time than expected, because of daily cycling patterns, the overall system output is lower than planned, because the amount of scattered radiation was not taken into account and product counterfeits of insufficient quality lower the system performance. The second assertion explains, how methodologically flawed system design leaves end-users dissatisfied with a system that does not meet their electricity requirements, how a mismatch of components leads to early system failure and how a lack of quality in activities such as wiring increases system losses significantly. And thirdly, irresponsible after-sales organization leaves the end-user alone and allows that minor problems, which could be fixed without great effort, weaken the whole system and impede a sustainable solar home system dissemination.
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5.3
Standardization of SHS
Experiences made in different field studies show that the quality of installed solar home systems is better, if standards have been enforced. Demands made on solar home system quality and performance vary widely, partly because of particular country characteristics or the regional supply situation, but also because of a lack of binding standards or knowledge on their existence (Fahlenbock & Haupt, 2000). Thus, to define a good compromise between affordability and quality, various sources have been consulted: international standards from recognized standards committees, national standards from countries that have adopted solar home systems widely, best practices from organizations such as the World Bank and IEA PVPS and specifications for the evaluation of tenders of substantial aid-funded programs have been researched for suitable certification approaches that specifically address the problems identified earlier. In addition to that, these specifications have been backed up by opinions from experts in the field of SHS dissemination. The leader in standards development for the Photovoltaic panel as well as the balance of system (BOS) components is the International Electrotechnical Commission (IEC) as representative of relevant committees and working groups of standards agencies from most manufacturing countries. While a number of IEC standards deals with batteries in general, appropriate sizing for PV systems or correct charging procedures are not covered to date (Wilshaw, Bates, & Oldach, 2004). According to a World Bank guidance note, the attempt to fill this gap and to assure quality through the PV Global Approval Program with a quality seal stating PV GAP certification has shown to be largely ineffective in practice, because neither manufacturers nor end-users requested it (World Bank, 2010). While IEC specifications detail on how to conduct component testing in a standard and repeatable manner, the value of the measured feature is then set in procurement standards (Cabraal, 2010). A look at such standards from countries that have implemented solar home systems successfully facilitates the proposal of adequate values for decent quality at affordable prices. For this, the technical specifications developed for the Rural Electrification and Renewable Energy Development Project (REREDP) in Bangladesh have been found very suitable (TSC Bangladesh, 2005). Valuable recommendations are also made in the proposal for a Universal test standard for solar home systems (UTS-SHS) the Instituto de Energia Solar (Spain) created this document together with standardization bodies from the European Community as a whole (JRC Ispra), France (GENEC) and Germany (WIP) to provide a basis for a global standard for SHS. For this, it took over formulations of the formerly named procurement specifications and made use of standards and guidelines from 20 countries, many of which in developing countries. The UTS- SHS however is limited to technical aspects and does not include recommendations related to after-sales services. (Wilshaw, Bates, & Oldach, 2004) A report published by the gtz called Quality Standards for Solar Home Systems and Rural Health Power Supply evaluated various tender documents and other SHS specifications to develop a set of text modules that can directly be used for future project descriptions. In these, minimum requirements for a reliable technical set-up according to the current state-of-the-art, are stated, which assist in the procurement and installation of solar home systems. (Fahlenbock & Haupt, 2000) Over and above, quality is important on all levels of SHS dissemination, including technician and end-user training, pre-sales and after-sales activities as well as disposal arrangements at
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end-of-system-life. The World Bank has developed four quality assurance manuals, which cover various aspects from manufacturing to design, to installation and maintenance and to laboratory accreditation, which are summarized under the term QuaP-PV. For further details on SHS standardization, refer to the IEA PVPS Task 3-Survey written by Wilshaw, Bates, & Oldach. (Wilshaw, Bates, & Oldach, 2004)
5.4
Targeted Testing
Conform to all researched standard documents is the requirement to put only components into operation, whose quality has been certified under international IEC standards. Whereas it is possible for local laboratories in developing countries to become versed in running those test sequences, component testing should be left to major approved laboratories. The financial effort to acquire and maintain the necessary equipment is enormous, as for example, prices for solar flash simulator to test PV modules start at 50,000, and makes only sense for experienced laboratories that perform those tests on a large scale (Pfanner, 2010). However, during the evaluation of problems, three main obstacles were collected that could be overcome by local hardware certification: the functionality of the system as a whole, the performance of different batteries under realistic load currents in usual SHS and the verification of the PV panel energy yield on-site.
5.4.1
To be able to certify the performance of a complete solar home system in operation, the IEC has developed a well-thought-out standard filed under 62124 - Photovoltaic (PV) stand-alone systems Design verification. The procedure includes both outdoor testing in prevailing conditions and indoor testing under simulated conditions and validates not only the functionality, but also the autonomy and ability to recover after periods of low state-of-charge of the battery a pass can thus reasonable assure that the system will not fail prematurely (IEC, 2004).
5.4.2
Battery Performance
The need for a benchmark test to compare prices with lifetimes has been expressed by various experts (Schnuurhuizen, 2010) (Sandgren, 2001). According to Wiesner, the load current laid down in the IEC battery-standard 61427 does not correspond to realistic load currents in usual solar home systems and furthermore takes a long time to test (Wiesner, Test facilities for long- time survey on small decentralised PV-supplied energy systems, 2003). Thus, a regional standard, which has been drafted to assure the functionality under realistic conditions, is proposed instead: The East African Standards Community (EASC), which is made up of the official standardization entities of Kenya, Tanzania, Uganda, Rwanda and Burundi, has found the battery of a solar home system to be the most crucial part (EASC, 2003). In order to assure satisfying operation, the EASC with the Kenyan Bureau of Standards as its leader, has developed recommended practices for installation, maintenance, testing and replacement of this component, filed under CD/K/04/2003 Batteries for use in photovoltaic power systems. To evaluate the overall performance of a battery in a SHS, the test not only evaluates the usable capacity, but also estimates the battery life and its reliability. Typically, life expectancy
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for a lead-acid battery will halve for every 10 C rise in temperature above the recommended operating temperature. However, in solar home systems, the cycle life plays a much more important role, as the batteries are subject to a daily cycle superimposed upon a seasonal cycle. The cycle endurance is the ability of a battery to withstand repeated charging and discharging. The EASC-standard specifies the number of cycles to be achieved by solar batteries. An accelerated simulation of battery operation in a PV system under increased ambient temperatures validates the values. Over and above, valuable design considerations as well as recommended installation practices are explained, which create awareness about important factors, such as the time required accessing the site or measures against thermal runaway. (EASC, 2003)
5.4.3
On-site measurements are essential in validating the actual performance of the PV system, especially in projects where the panel is suspected of product imitation (Pfanner, 2010). Hence, the local test laboratory shall be able to offer a tool kit for local inspections that verifies the installed array power performance relative to design specifications. The East African standard CD/K/10/2003 - Crystalline silicon photovoltaic array-on-site measurement of I-V characteristics proposes two different methods that use the junction temperature and the I-V characteristics for validation.
5.5
As standards are useless without their proper application, setting up a test laboratory may serve as a valuable tool to enforce them locally. This facility may not only verify the performance of the system and its components, but also fulfil further activities: The evaluation of problems has shown that a lack of awareness exists about limitations and potentials of solar home systems. Therefore, the laboratory could exhibit the functionality of SHS to interested microfinance institutions, their clients and other stakeholders involved. While the MFI is then able to understand and implement crucial elements of quality assurance and may furthermore negotiate with the technology provider at eye level, end-users see a real system in operation and cannot be fooled by creative advertising. Being conscious of the fact that systems depend on favourable weather conditions and may not be used for e.g. ironing or cooking will lower dissatisfaction at a later stage. Regarding the potential of SHS, it would make sense to put systems with various appliances on display, which provide again both the MFI and its client with knowledge about income-generating services based on SHS use.
Figure 5-13 Mobile phone charging business product development (Sow, 2009)
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Suitable DC appliances have not spread widely yet, but various activities are thinkable and a number of innovative tools have been developed in recent years. The test laboratory could receive direct feedback on those new product developments and help to adapt them to local needs.
5.6
Connecting the distribution of solar home systems with microfinance is seen as measure, which all stakeholders can profit from. Its implementation makes the market less price sensitive and allows emphasizing on high quality products instead of trying to find the cheapest ones available a reliable, well-performing system is a crucial condition for a high willingness and ability to pay for the instalments (Kebir, Microfinance & Energy, 2008).
Figure 14 Comparison of long-term payments for battery/kerosene lamp and SHS (Kebir, Microfinance & Energy, 2008)
5.6.1
The end-user benefits gets the ability to split the high initial price into a number of instalments and to acquire a solar home system in order to fulfil his primary electricity needs. Furthermore, experience in the field shows that SHS are used to generate additional income and thus support households in breaking the vicious circle of poverty (Harsdorff & Bamanyaki, 2009). Microfinance institutions may supply their clients demand for modern electricity and furthermore attract new clients through broadening their product portfolio with an energy loan. Solar home systems are visible and friends and may thus serve as marketing tool for microfinance. Because SHS are potentially income generating, the MFI may mitigate the risks regarding non-repayment of the loan. Over and above, this type of loan attracts investors, who see it as a productive instrument for low-income households and not as a charity action. Such energy programs may also profit from subsidies by the World Bank and other international funding agencies, which eases the need to re-finance for the MFI. (Barbalata, 2010)
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Solar technology providers also state various reasons for a corporation with a microfinance institution: Firstly, it allows the company to recover its money in the shortest time possible and enables the client to receive a solar home system upfront, which indirectly encourages others to also purchase a system. Moreover, they believe that the MFI is respected by the end- user, who will therefore not dare to default. In addition to that, MFIs already have an existing customer base that helps to market the product. And finally, loan officers are in close contact with the end-user on a frequent base and may help to report back customer complaints. (Namazzi, 2010)
6 Discussion
6.1 Problem Evaluation
The first aim of this paper was to identify problems that arise during solar home dissemination by means of a market-based approach and to categorize them accordingly. While the solar component and the user are often initially blamed for system failure, the analysis of problems suggests a different cause. It was found that difficulties arose at various stages of the SHS life cycle and three underlying causes were suggested: maladjusted systems, inadequate installations and a disorganized after-sales service.
6.1.1
In a next step, existing standardization efforts regarding solar home systems were researched to ascertain elements of a certificate for microfinanced SHS, which specifically address the problems evaluated earlier. It became clear, that most binding standards from international quality assurance organizations refer to the pure solar part or to the performance of individual components only. Due to this gap, many dissemination projects defined their own regulations in the past.
6.1.2
In order to provide a means of enforcing standards, a local test laboratory was proposed. Different test processes were identified as crucial to address the problems at a local level. In due course, the test lab may serve another purpose exhibit the functionality of solar home systems. By furthermore including appliances into the exhibited system end-users may be informed about various activities that can be carried out with solar power to generate income and can also provide direct feedback on the development of new products. This proposal partly reflect conclusions that were made in a similar research project carried out by the gtz: i.e. in order to increase the sustainability of electrification projects, a study on socio-economic and productive impacts of solar home systems in Uganda recommends the development of business lines that especially promote Solar Business Systems that power hair shaving machines, charge cell phones and are flexible to new business ideas like fridges to sell cold drinks/ice cream and are adaptable to other innovations. (Harsdorff & Bamanyaki, 2009)
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6.2
Corroboration of Hypothesis
When a comparison is drawn between the original objective and the outcome reached, it becomes apparent that the certification elements together with a local test laboratory may address the underlying problems only to a certain extent. The proposed set-up can guarantee system functionality under the given conditions, which would lead to more robust solar home systems and lower maintenance requirements. Moreover, the supplementary exhibition function of the test laboratory can improve the allocation of roles between project partners and thus foster a clear share of responsibility of after-sales services. However, even if necessary procedures are standardized, the maintenance effort is reduced and servicing responsibilities are clearly defined, this does not guarantee that installation and after-sales procedures are actually carried out properly. To be able to ensure sound execution of those operations, high-quality training of involved stakeholders becomes crucial. Considering that, the World Bank has developed a useful guide for implementing a national quality trainer accreditation and practitioner certification system of PV systems design, installation and maintenance. For more information, readers are encourage to refer this document: Certification for the PV Installation and Maintenance Practitioner: Manual for Implementing Qualified Certification Programs written for the Quality Program for Photovoltaics (QuaP-PV) in 2000 by Mark C. Fitzgerald (Fitzgerald, 2000).
6.3
Key Insight
First and foremost, experiences made worldwide have underlined that the implementation of standards is of great value in projects that involve numerous stakeholders, because it provides a common language facilitating direct communication. Secondly, a sustainable approach for solar home system dissemination should not attempt to increase the affordability of the technology by developing cheaper and cheaper products but by offering end-user finance and by fostering income-generating activities, which facilitate paying for good quality systems and make a service infrastructure viable.
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