Solar Lantern Rental System: Paying for the service, not the hardware

Abstract

This paper is a concept note on Sunlabob's latest innovation to tackle the challenge of rural electrification using renewable energy sources in developing countries. A technical and operational description is given of a rechargeable battery lantern and solar charging station rental scheme. Sunlabob has developed a package based upon a village entrepreneur operating a solar charging station on a rental basis. The entrepreneur charges portable lanterns, and circulates them among village households in return for a fee collected for each recharge. The revenue covers the costs of operating the system on a commercial basis. For households, the recharging fee is a regular small expense, qualitatively comparable to buying kerosene at the village outlet. Sunlabob's experience has shown that technical expertise is essential but it needs to be combined with a robust operational and financial model offering economic sustainability, for rural electrification programmes to be successful and have long-lasting benefits for populations in developing countries. Involvement of local populations is also decisive, both for a smooth transition and for good management and maintenance of the renewable energy solutions proposed.