4 TIPS TO PROMOTE SOLAR POWER IN AFRICA

The rise of solar energy in African countries is surprisingly low. The continent accounts for only 9% of the installed global photovoltaic (PV) capacity, which converts sunlight into electricity using semiconductor materials. The rate of photovoltaic energy production rose from 1% in 2010 to only between 3% and 4% in 2013. This despite the extraordinary solar exposure of Africa (most of the countries of the African continent receive Between 4 to 6 kWh/M2 / day most months of the year).

In the past, the poor diffusion of clean energy in developing countries, particularly in rural areas, was attributed to poverty and ignorance. But the dynamics of the market in recent years challenges this theory. Mobile telephony technologies, for example, have massively penetrated these same environments. Why does the solar industry remain behind?

A study done in Kenya sheds some light on this issue. It appears that four conditions combined would boost the use of photovoltaics: a favorable environment, access to finance, awareness-raising, and access to technical assistance services.

A supportive environment requires an understanding of the institutional framework in a country or region that supports the growth of a particular industry. Its quality depends mainly on the nature of the rules of the game put in place by the national government and the regulatory bodies that can either handicap or promote private initiative. The "Kenya Plan for Cheaper Energy Development" provides a good example of how a regulator can become a disability. In its latest plan, the National Energy Commission does not foresee the production of electricity from solar energy during the 20 years envisaged because this technology was considered too expensive but this is no longer the case today.

This plan limits the application of solar energy to domestic solar systems: solar water heaters and other off-grid uses in rural areas. This deprives the country of the opportunities offered by photovoltaic installations that would allow the production of cheaper electricity. However, one positive point is the exemption from VAT applied by the Kenyan government to all photovoltaic equipment such as solar panels, batteries and controllers. This reduces the cost by 16% and increases the chances of use.

Second point: access to finance has been identified as the main obstacle to the penetration of solar energy in Africa. The effects of scarcity of funding are felt by all stakeholders, from manufacturers to end-users, importers, distributors, and resellers.

Basically, local banks charge their loans at high interest rates, between 15% and 25%, which makes it very expensive to acquire a solar energy system. The business environment, which is not conducive to investment, is hampering the installation of new external banking groups and credit remains expensive.

Also, raising awareness among users is another major challenge, particularly in rural areas. Information on available energy options and their benefits needs to be intensified. The risks associated with the use of fossil fuels such as diesel and paraffin must also be brought to the attention of people.

Finally, the shortfall in the use of solar energy and other modern energy technologies among end-users has also been limited. This is partly due to the lack of entrepreneurial capacities in the energy sector, particularly in rural areas. Also, faulty quality products circulating on the market are pushing users not to trust the new technology. A study of LED torches in East Africa found that 90% of users experienced quality-related problems during the six-month study period.

Finally, the ease of access of end-users to technical assistance is another key factor. The presence of technicians well trained in troubleshooting, repair and maintenance would increase consumer confidence. But the fact that consumers live distant, have little purchasing power, makes the establishment of technical assistance centers in areas of unsustainable distribution.

To conclude on a more positive note: all indicators point to a massive adoption of solar technology in the developing world. All of the aforementioned difficulties can be overcome if awareness raising is intensified, training is made more available, financial risks are reduced and the cost of solar technology becomes affordable.