 Policies affecting electrification and business development in rural areas play an important role in establishing an environment in which stand alone system service providers can grow and improve their services. Across the globe, there are three key policy areas related to stand alone systems:
 Level playing field and inclusive rural electrification policy
Fiscal policy rationalization Technical specifications and after sales services
Level Playing Field and Inclusive Rural Electrification Policy The rural electrification planning framework should clearly define the roles and criteria for grid expansion, isolated mini grids, and or stand alone systems. It should also ensure a level playing field for the stand-alone service providers to fairly compete with traditional utilities. Often the regulated competitive process starts with the commitment by the government to pursue this process and is articulated as an integral part of a rural electrification policy. A main element is the recognition by the Government in the roles of some the players: (i) Government is a regulator and market enabler; (ii) private firms and NGOs are power suppliers to villages, remote communities and individual households and (iii) local banks and (micro) finance institutions are players in facilitating the uptake of finance for village and household-level renewable energy systems. Furthermore, rural energy plans should be inclusive addressing grid expansion and off-grid growth. In the Philippines, the Government in its energy plan indicated the areas targeted for grid extension and areas targeted for off-grid solutions, which will allow the utilities and off-grid project developers to plan ahead. For more information on how to decide between grid extension, mini-grid, or stand-alone systems, link to Rational Module Role in Rural Electrification. For more click here 
Fiscal policy rationalization Experiences show that imbalances in import duties and taxes on stand alone systems compared to alternative power systems can strongly affect the rate at which the start-up enterprise can expand its sales. Often these imbalances are caused by unfamiliarity with the stand alone system and its components. For example, solar PV modules have been categorized as computer components on which substantially higher duties are charged than electricity systems. After this has been discussed tax books can be adjusted. For more click here
Technical specification and after sales services The government should require adopting technical specifications and after sales service to ensure sustainability and long term customer satisfaction with the systems. This could be an integral part of a renewable energy policy or encouraged to be self controlled by industry associations. The standards should be reviewed from time to time based on experience, and adjust for innovations and market development. Although such technical standards are welcomed by stakeholders, sometimes they could slow down growth as dealers need more time to source technically certified products. For PV projects, the Bank has supported the development of quality standards for PV components and systems; their manufacturing; installation; testing; and maintenance. Please see guidelines for more information. For more click here
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