Market Research on PicoPV Systems of Lighting Africa

Lighting Africa

Lighting Africa is a joint IFC and World Bank program. Its objective is to provide up to 250 million people in sub-Saharan Africa with access to light generated by alternative energy sources by 2030.

Methodology

The research was accomplished by Research International East Africa.

It includes:

• five products: a table lamp and two flexibly mountable lamps powered by means of small, portable solar panels; one flashlight powered by solar panels; and a second flashlight powered by common batteries.
  
• two key market segments: households and micro-businesses in rural and urban areas
  
• five countries: Ethiopia, Ghana, Kenya, Tanzania, Zambia
  

The research collection, which was accomplished in 2008, consists of:

• Exploratory Qualitative Study. Objective is to gain a first insight on user demands and preferences. As usual in case of qualitative data, results can not be generalized, but provide an in-depth understanding of consumer needs and motivation. This phase includes 55 interviews. Simultaneously each respondent tested an off-grid product. Interviews were accomplished in each of the two market segments.
  
• Quantitative Usage and Attitudes Study. This phase aims to quantify users habits and attitudes. Additional questions, which were of keen interest: current expenditures for energy supply, willingness to pay. This phase consits of interviews with 1000 households and 400 small business owners in each country. Interviews were accomplished through structured questionnaires.
  
• Product and Concept Testing Study. Objective is to find out new additional product types. Strenght and weaknesses of products are explored.
  

Results

Ethiopia

Qualitative Study

Use of Light:

Mostly used lighting source is the paraffin lamp. Due to perceived negative impacts, users would prefer an alternative, if available and affordable.

Households:

• Light is used in the morning for about one hour to get ready for the day. It is used as well in the evening for four hours for domestic jobs (preparing dinner, making homework, etc.).
• In houses with one room, light is used for all activities, while in bigger houses mainly two lighting devices are needed.
• Light illuminates mainly the living room. But lamps are carried around if needed (toilet, kitchen, etc.).

Micro-Business:

• Light is used in the morning for about one hour in businesses, which open before sunrise.  Businessess use the light in the evening mainly from 6:30 p.m. to 9 p.m. (mean of 3 hours).
• In bigger shops, light is mainly used for the customer room.
• Markets outside use portable lights only, if street lights don't work.

Lantern	Perceived Advantages	Perceived Disadvantages
Dynamo, LED	adjustment of light no batteries easy to use small size possibility to hang - light for a whole area good brightness portability possibility of use during power blackouts	design like thermos easy breakable handle and panel time, energy necessary for charging process noise during charging process short duration of light difficult to close and open
Task Light: Solar, CFL	size and color easy to use: switch good brightness portability economic (rechargeable batteries; solar) use as torch or lantern easy to place everywhere	birdirectional light heavy material seems easy breakable (glass) expensive use only in summer, it has to be moved around recharging recharging encourages theft (has to be left outside)
Task Light: Replaceable batter, LED	appealing design easy to use small size easy to place everywhere portability good brightness bending to different directions batteries everywhere available	appears expensive, luxury batteries are expensive breakable
Spot Light: Solar, LED	appears long-lasting economic (no bill, batteries) adequate brightness	in terms of design least popular product; indoor use difficult expensive use only in summer no switch light intensity not strong enough difficult to place charging encourages theft
Torch: Solar, LED	familiar design portability easy to use economical (solar)	charging encourages theft light too dark  use only in summer batteries are not easy available panel easily breakable expensive appearance too big and flat size
Torch: Replaceable battery, LED	long-lasting design and material good brightness portability easy to use familiar design	heavy expensive multipurpose not possible batteries not easy available expensive (because of batteries)
Dynamo, rechargeable battery, LED	size (able to fold) and weight easy to handle / place long-lasting material light available anytime no smoke economical (solar)	breakable handle light intensity not strong enough charging process lasts to long
Flood Light: Solar Light, Linear Fluorescent	light-weight economic (solar) strong light intensity easy to use small size no negative impact on environment	charging encourages theft spare parts not easy available use only in summer connecting lead (panel-bulb) too small
Lighting System Concept	solar no interfere with the power economic (more reasonable then electricity) no additional costs	expensive risk of theft use only in summer spare parts may be not available

The study in detail can be read up here.

Quantitative Study

Households:

• The majority of Ethiopian consumers are farmers (81%), living in rural area (79%), with an average income of households about USD 115.79. 91% of consumers and 89% of traders are not connected to the grid. Both connected to the grid, experience cut offs at least once a week.
• 26% of consumers state, that the most urgent improvement is better lighting. Main consequence of better lighting is an improvement for children in order to make their homework (43%). Because this is the first activity, which is stopped due to a lack of lighting in all Ethiopian regions.
• Kerosene is the major energy source. Preferred type of lighting device are paraffin lamps with glass cover (25%). Solar powered lanterns are preferred by 15%. Quality of paraffin lamps is rated lower than of solar lanterns. Light bulb in socket are rates best in terms of quality. On the other hand ease of use of solar lanterns is rated lower than of paraffin lamps. Flashlight are easiest to handle.
  
• The average time light is used is about 3-4 hours. Light is used mainly for the living room, most people need to enlighten two rooms. Lighting device is mainly hung from a hook on the wall (47%).
  
• Chatting / socialising (78%) ist the most common activity at night.
• 39% are limited in their outdoor activites, mainly taking care of livestock (71%) or visiting neighbors (34%).
• head of household decides about purchasing and money.
• However, 96% of respondents don't worry about impacts on health or environment (99%) using paraffin or kerosene.
  

Micro-Business:

• Most businessess are rural based (78%), traders are between 25 and 44 years.
• The majority of Businessess open between 7 a.m. and 9 a.m. and close between 6 and 9 p.m. (already dark)
• Improved lighting is the first thing to improve (20%), 12% stated a power connection as most important improvement. 40% of them need this to increase their level of productivity.
• Kerosene is as well the most used energy source. A Paraffin lamp with glass cover is the lamp used mostly (47%). 84% use their light only at the businesss premises. Preferred position of the lamp is the place, where the money is collected.
  
• 55% never open their business after dark, due to a lack of customers (70%).
• Barriers to improved lighting is the unavailability of better lights (34%) and affordability (27%).
• Traders are mainly awae of depository bank account with interest, microfinance programmes and Co-operative loans as source of financial services that can be used to improve businesses. But practical the most accessible are microfinance programmes.

Most Acceptable Price Point

	Household	Trade
Lantern	5.02 USD	6.23 USD
Torch	3.22 USD	3.32 USD
Task Light	4.82 USD	5.02 USD
Flood Light	N/A	7.24 USD