Strategies to target rural PV market in developing countries - a perspective

Abstract

The objective of this paper is to describe the Solar PV market with regards to products like solar lanterns, home lighting systems, power packs especially in the rural context of developing countries. Steps taken by some companies in trying to reach the rural market with solar PV product for matching the needs of the rural regions in India are described. In the study of rural PV market two divergent views exist, providing a mass-manufactured product at very low prices and the other of customized solutions supported by soft-financing options through rural banks. While mass produced solar PV products (SPP) may deliver economies of scale bringing down costs, does it guarantee quick sales and user benefits? On the other hand delivering customized solutions to the user may guarantee sales, financing the solution is a difficult and a long-drawn process, casting a doubt on its ability to scale up. An alternative strategy is developed that targets the rural rich rather than the traditional bottom of pyramid users. Its rationale is explained.