Rural people pay for solar: experiences from the Zambia PV-ESCO project

In the eastern province of Zambia, three companies for solar energy services have been operating for more than two years, with 400 clients paying for the use of solar photovoltaic (PV) installations. Clients do not become owners of the systems. Instead, the company continues to charge a fee for keeping the systems in operation. In this way, the useful lifetime of the solar systems is increased, and clients have local access to skilled service and spare parts. The fees for solar services cover the full operational costs of the companies, including battery replacement and makes them independent of further support from government or donors. Results to date show that clients are happy with their systems, which are of a standard solar home (SHS) size of 50 Wp, with four lights and a socket for radio or other light DC appliance. This is in spite of paying a higher price than what was previously spent on candles and kerosene for lighting. The most important benefit cited among the clients is that children now have the possibility to do their homework in the evening. The second most highly valued feature is entertainment, such as radio and video. Solar systems contribute to increased income earning opportunities especially in the service sector. The poorest rural people cannot afford to pay for a solar system in their house, but benefit from systems in the shops.