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![Page 1: Innovative Business Models and Financing Mechanisms · PDF fileInnovative Business Models and Financing Mechanisms for PV ... - Product designed for mass market ... rural water supply:](https://reader031.vdocuments.site/reader031/viewer/2022030504/5ab09d417f8b9aea528b554b/html5/thumbnails/1.jpg)
Innovative Business Models and
Financing Mechanisms for PV
Deployment in Emerging Regions
Dr. Thomas Meier
6th World Conference on Photovoltaic Energy Conversion WCPEC-6,
Tuesday, Nov. 25, 2014, Kyoto
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Subtask 5B: Innovative Business Models and Financing
Mechanisms
Objective:
The objective is to evaluate and disseminate information on
new and innovative business models as economically
sustainable alternatives for PV deployment in emerging
regions.
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Activity 5.1 General Analysis Framework
The Business Model Canvas
Figure 2 The Business Model Canvas (Source: Osterwalder et. al, 2010:44)
ValueCostMore info
(Source: Osterwalder et. al, 2010:44)
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Activity 5.1 General Analysis Framework
Work Session in Lyon, April 2014
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Example 1: Pico PV ‘Pay-as-you-go’ Business Model
Company: AZURI Technologies Ldt., UK
Specifications:
- 2.5 Wp PV module
- 3.3 Ah Lithium Iron Phosphate Battery
- two 60-lumen LED lights (ca. 8h/day)
- USB socket for phone charging
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Example 1: Pico PV ‘Pay-as-you-go’ Business Model
Company: AZURI Technologies Ldt., UK
Costs:
- Installation fee: ~ US$10
- Weekly top ups: ~ $1.50
- Unlock after 80 weeks: ~ US$10
- Total: ~US$140 ~US$ 0.25/day
Competitor product by Safaricom: total
cost in 1 yr: ~US$ 215 US$ 0.6/day
The business model:
- Product designed for mass market (approx. 30’000 systems sold to date)
- Sold via local distributors/resellers
- Azuri generates revenues from commission top up cards
- Cloud-based distribution management system for real time monitoring of
customer status
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Example 2: PV powered water supply solution
Company: Grundfos Lifelink, Denmark
A technical solution addressing three key sustainability problems in
rural water supply:
Technical sustainability
Long term service contract and remote
monitoring of plant operation.
Financial sustainability
Cash free pre-paid system via mobile
phones prevents mismanagement of
funds.
Financial Affordability
Financing models available to cover
the upfront cost of a water plant.
Kenya example: customers pay in average US$ 0.35 for 20 liter of safe
drinking water.
Source: http://www.grundfoslifelink.com/
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Communal Water Point Mini Grid of Water Points
Example 2: PV powered water supply solution
Company: Grundfos Lifelink, Denmark
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Example 3: Peer-to-Peer Funding of Renewable Energy
through Crowdfunding
Company: Mosaic, United States
Online solar marketplace connecting
investors with solar projects:
- Project sizes: 50kW to 1MW+.
- minimum investment is US$25.
- Annual interests 4.5% to 6.5%
- Repayment term: 60 to 120 months
- Notes are unsecured obligations of
Mosaic (!)
Example of PPA:
PG&E: US$0.109/kWh - Nov.2013-2033
Revenues by Mosaic
Origination fee: ca. 3%
Annual fee on principal: 1%
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Example 4: PV investments as a hedge against raising
electricity tariffs
Company: SunEdison, India
Location: 18 MW Tirunelveli solar power plant in Tamil Nadu
- 12 blocks @ 0.75MWp and 9 blocks @ 1MWp
- Park set up & operated by SunEdison
- Investors can purchase one or several blocks, no need for
technical expertise
- Investors enjoy tax incentives (appreciated depreciation) and
locked electricity cost for system life-span (net-metering
system)
Sunedison’s revenues:
- one time development fee
- annual O&M payments
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Large
Small
Rural Urban
Azuri
SunEdison
Mosaic
Chloride
Exide
Gham Power
Classification of
Models discussed
Grundfos
Grid-
connected
Off-Grid
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Large
Small
Rural Urban
Azuri
SunEdison
Mosaic
Chloride
Exide
Gham Power
Classification of
Models discussed
Grundfos
Grid-
connected
Off-Grid
Large Systems
- Investment Opportunities
(O&M by professionals)
- Energy/Tariff Security
Small Systems
- End-use oriented (DC Systems) for
mass market
- Plug & play / low skill technology
- Key factors: Distribution channels,
Marketing activities, Partners
- Financing mech. For rural dwellers
Successful PV products and services must be
packaged in a way to appear clear and simple -
even if they are based on complex processes!
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Task 9 Representatives from Switzerland
Thomas Meier – [email protected]
Alex Arter – [email protected]