Surya's Promise: The Scaling-Up (or not) of Off-Grid Solar Technologies in India
Singh, Kartikeya.
2017
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Abstract: India is a country where 300 million people still live without
access to formal grid electricity, and where hundreds of millions more live with irregular
supply through the existing grid network. This dissertation unravels the various factors
that can influence unit scaling, understood for the purposes of this study as widespread
diffusion of off-grid solar technologies, to help policy ... read moremakers and financial institutions
to mobilize efforts to effectively bring millions of people out of the dark. To research
this topic, an in-country survey of 69 off-grid solar energy providers from across the
nation was conducted. Findings from that survey reveal that most off-grid solar energy
enterprises are operating without the benefit of government subsidies and that more than
half do not offer any form of financing to their customers when selling their products.
Despite the lack of financing provided by the firms themselves, their combined off-grid
solar product sales equal over 8.5 million units. More than half of the enterprises are
selling their products in regions where the electric grid is present. Analysis of data
collected suggests that an increase in product categories (lanterns, solar home lighting
systems (SHS), micro-grids, etc.) sold by a given firm negatively affects unit scaling, or
the total number of products sold, for a firm but increases the likelihood that the firm is
offering financing for its products. The study thus concludes that to simply scale in
number of units of products sold, a firm should focus on fewer product categories. A deeper
exploration on the question of finance - through interviews with firms, customers, informal
sales agents - reveals that lack of adequate government-supported financing for the end
user, often cited as the main barrier to the diffusion of the technologies, may be a less
important factor than previously thought. For the customer, often the factors associated
with the decision to purchase are more important than the ability to pay. Purchasing
decisions are influenced by experience with a product, association with a sales agent or
company, and/or exposure to technology through others in the community. Innovative business
models can both make products more affordable (addressing the end users' ability to pay)
and more accessible (addressing their decision to purchase ). Thus chapter III suggests
that the focus of finance should be for these innovative firms which are currently in need
of capital to help scale-up their businesses. Finally, chapter IV explores the case of
Green Light Planet, a firm that may hold the key to scaling-up the diffusion of off-grid
solar technologies in the developing world. The paper reveals that the company's business
model innovation relies on networks of sales agents operating under a system of sales
targets, incentives, and boosters to conduct high volumes of sales.
Thesis (Ph.D.)--Tufts University, 2017.
Submitted to the Dept. of Diplomacy, History, and Politics.
Advisor: Kelly Sims Gallagher.
Committee: Jenny Aker, and Ambuj Sagar.
Keywords: Energy, and Climate change.read less - ID:
- st74d309w
- Component ID:
- tufts:22059
- To Cite:
- TARC Citation Guide EndNote
