Preparing for scale-up: Lessons from SolarAid’s experience of microbusiness solar 18 July 2007 Nick Sireau, Director John Keane, Programmes Manager

"I'd put my money on the sun and solar energy” - Thomas Edison (1847–1931)

The context Pilot projects Research Plans for scale-up Key points and questions Today’s session

Set up in August 2006 Solarcentury gives 5% of profit Christian Aid funded pilot project Public launch October this year About SolarAid

The context: solar energy and development

Two billion people in the world have no access to electricity

Four billion people live in the developing world The majority of these people live in; Africa Asia Latin America

They also have the greatest exposure to sunlight

Pilot projects: Solar micro business in Malawi, Tanzania and Kenya

Why we did the pilot projects Testing the concept Developing processes Scoping for replicability and growth

Solar microbusiness in Malawi Kaliya Youth Group

Solar microbusiness in Malawi 1 W panel

Solar microbusiness in Malawi LED light in kerosene lamp

Solar microbusiness in Malawi Solar charger

Solar microbusiness in Tanzania With disabled people

Solar microbusiness in Tanzania Solar workshop

Solar microbusiness in Tanzania Solar workshop

Kenya: the Fomax success story Entrepreneurial founder Major demand Today: large sales force

Summary of pilot project results Importance of entrepreneurial spirit Sourcing of materials Distribution and marketing Quality of training and monitoring/evaluation

The importance of solid research

Importance of research The importance of market research –A scale-up programme has to be grounded in strong research –Baseline study funded by TRAID –Building research into the programme

Importance of research Research methods: 200 people surveyed University and local surveyors Four questionnaires: –Potential Customer Survey –Potential Supplier Survey –Raw Materials Components Supplier Survey –KALIYA Youth Group Survey

Importance of research Research questions: –Demographics –Energy use –Interest in solar products

Importance of research Research findings (1): –Product now being sold could be improved –Market for solar lantern and radio –Solar mobile phones: reduced market

Importance of research Solar lantern

Importance of research Solar radio

Importance of research Research findings (2): –Need for quality products –Timing of project –Cities interested –Incentives for trainings –Cultural factors: status –Distribution centre

Importance of research Implications for programme scale-up: –Price –Place –Promotion –Product

Importance of research Implications for SolarAid: –Credibility –Similar studies for other countries –Ensures strong monitoring and evaluation

Rolling out the scale-up

Scaling up our work Pilot projects: 3,000 solar panels In three years: one million

Scaling up our work Two scenarios for scaling up SolarAid: –Current plan: £250k year 1, £600k year 2, £1.2m year 3 –Faster growth from £4m in year 1, £8.3m in year 2 to £14m in year 3

Funding our scale-up: Trusts and foundations for first phase Second phase: carbon markets and public Core: high net worth individuals Scaling up our work

Key points and questions

Identifying and nurturing entrepreneurs Piloting projects to test your model Developing strong market research Analysing social, economic and cultural factors Key scale up points

Any questions?

What advice could you provide for our scale-up? For group discussion

How can successful pilot initiatives in market development be scaled up? How can the private sector support the development of small and medium-sized enterprises in low income countries? What role can NGOs play in scaling up market development initiatives? For group discussion

Our vision A world where everyone has access to clean, renewable power