Solar Home System Challenges for the Private Sector in Mozambique
Solar Home System Challenges for the Private Sector
Although the Mozambican SHS market is growing, the growth is still limited by many factors which are explained below:
Growing informal market for low-quality SHS products: The SHS market is populated with cheap low quality SHS imported mainly from South Africa, Tanzania or China. These SHS can be up to 50% cheaper than those from registered companies as they are imported informally without paying VAT and import duties. The average price for a low quality SHS on the informal market can be as low as USD 50, while a Tier 1 SHS (20 W with 3 lights and a charger) on the formal market already costs more than USD 100[1]. Hence, the informal SHS products have distorted the market and created an uneven playing field for formal registered companies. They also negatively impact the consumer perception of SHS as they lack quality and durability (life-span of less than 6 months).[2][3][4]
- ↑ Based on the prices from Solarworks! for the lowest Tier SHS
- ↑ Economic Consulting Associates and Greenlight, “Off-Grid Solar Market Assessment in Mozambique.”
- ↑ World Bank, “Mozambique - Energy for All (ProEnergia) Project.”
- ↑ Hodgkinson and Smeshko, “Challenges in the Solar Home Industry in Mozambique.”
