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This client of Yeelen Kura started his own welding company
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RURAL
ELECTRIFICATION » FEE-FOR-SERVICE |
FEE-FOR-SERVICE
There are various business concepts for rural electrification
with the use of solar energy.
With the sale of solar panels customers are often enabled to buy
the panels in instalments, possibly with the aid of a programme
of subsidies. Cheaper or smaller panels can usually be paid
straight away by the customer. However, maintenance charges and
the risk of the solar panel becoming defective are then for the
customer's account. Experience shows that customers do not take
additional costs into account when they buy a solar panel, so
very often they do not have the funds to repair or replace the
SHS.
FRES works with the fee-for-service concept. The customer
"hires" the SHS and pays a service fee monthly in advance. The
company retains ownership of the SHS and takes responsibility
for the cost of maintenance. This ensures that the SHS will
continue to work in the longer term. The service fee depends on
the size of the SHS and the amount of the subsidy. The current
rates are € 12 - 20 per month in Mali and € 7 - 17 in South
Africa (average monthly income of a customer in Mali is € 85 and
in South Africa € 150).
The companies of FRES have set up energy stores from where the
maintenance is carried out and to which customers can go for
service and payments. The energy stores often provide other
services too, such as the sale of LPG for cooking, paraffin,
cooking appliances, light bulbs and solar energy water pumps.
Advantages of the fee-for-service concept:
- Long-term approach: the SHS will continue working
properly because SHS maintenance is guaranteed.
- Convenience for customers: there is no charge for
repairs and customers do not have to install accumulators
and solar panels themselves.
- Economic incentive for the region (structural work
opportunity).
- Passing on knowledge about how companies work.
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