Customer Needs and Increase Service Awareness

To address the lack of awareness, the industry can conduct generic promotion campaign on stand alone systems. It educates end-users on the advantages and limitations of stand alone systems, informed them about service and warranty arrangements and about available loan schemes. User education is essential for stand-alone system program success.     Information and training in simple maintenance and safe operating procedures should be targeted to those persons in the households who will have primary responsibility for the system. Users need to understand that good operating practices minimize recurring costs and enhance system life. A variety of communication channels could be used, including workshops and demonstrations at villages.  Dealers of stand alone systems could participate in such village level workshops to demonstrate their products.  In Sri Lanka, consumer acceptance of SHS took a leap with the entry of a multinational corporation with a well known brand name, and later when a local government authority (provincial council) lent credibility to this private sector initiative by linking its rural electrification program to the market-based renewable energy program. 

Initial market surveys and pre-investment studies should scope the market for the new technology systems to attract early developers to enter the market. More lessons can be identified through detailed surveys, especially in relation to: (i) willingness to pay more for modern energy services by the end users, as long as the energy supply is reliable and safe. It is recorded that a typical household is willing to pays 3 to 15% of its income on energy services (for example see China Market Survey); (ii) investments for market development to increase success and sustainability of a renewable energy program; (iii) local or community participation in, and cash contribution for, the implementation and monitoring of off-grid projects to ensures ownership on part of the communities involved, promotion of local capabilities, strengthening of community relations, and cost recovery; (iv) technology targeted for early adopters, often the middle to upper income rural people. With economies of scale a much wider dissemination takes place.

Careful market research should identify which communities or rural areas are best suited to service from stand alone systems, and the specific needs of the customer segments within those communities or rural areas.   Good marketing studies will first differentiate between institutional and household customers within a particular marketing area.  In most Asian countries, the density of rural households is high enough to allow viable businesses based on stand alone systems.  However, in most African countries (e.g. Uganda), the density of rural customers is much lower, and off-grid institutional customers became the primary customer segment that allowed the household customers to be served as a marginal cost.   Good marketing studies will differentiate customers by household income, gender and age of decision makers, occupation and sources of income.  They will also help to characterize the system needs for specific segments of the customer base to allow the selection of appropriate systems sizes for standardization.  In Bangladesh and other countries, offering smaller systems was instrumental in expanding the number of customers willing to purchase systems.  Programs to help promote markets for stand alone systems should start with the higher end of the customer pyramid to allow for development of the rural delivery infrastructure.  Programs should not start with the poorest of the poor.    Follow up of market research requires continued involvement of the consumers to further understand their needs and addresses complaints. The consumers have the responsibility to maintain and operate the systems according to operating manuals and trainings provide by the dealers.