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Pico PV Market Challenges in Ethiopia
Introduction
Currently the Pico PV systems' market is increasing alarmingly in Ethiopia. This uncontrolled diffusion of solar Pico PV products is a major concern as most products that are imported/distributed legally or illegally are characterized by poor qualities, not durable, some non branded and not warranted. This poses a great challenge for the emerging market of Solar Pico PV technologies in Ethiopia.
Pico PV Diffusion - Problems
No Standardizations
In Ethiopia, there is no control mechanism regarding Pico PV quality and standards Including certification. Most Pico PVs available in the market, have no quality certificates neither by lighting Africa nor from any legal certification organization. Therefore, the consumers who buy cheap products and have bad experiences will be wary of the other quality products as they will believe that it will break down as quick as the cheap products. This makes it difficult to achieve consumer loyalty and establish a market for quality Pico PV products.
Similarly there is also no clarity on PicoPV systems custom tax exemption
Cost
Pico PVs are generally expensive with abnormal profit and cannot be afforded by the rural community. In addition, there are also price irregularities such that the Pico PV products with the same brand in the same area could have different prices. Therefore the high upfront cost of Pico PV is also a impeding factor for creating a market.
Spare Parts Availability
The Pico PV systems are imported from foreign importers and many times, there is a scarcity of spare parts for the pico pv products. In these cases, the customers are forced to wait for the new parts or buy a new system. Both the situations are unfavourable for the consumer and impedes the growth of the Pico PV markets in Ethiopia. Similarly, there is no disposal mechanism of worn-out solar components in Ethiopia.
Solution
It is important to remind clean energy developing actors/NGOS, GOs and policy makers to design viable control system for illegally imported and poor quality solar products. There is also a need to have trained and licensed solar suppliers and retailers. It is also crucial to have Pico PV testing and regulatory institutions in Ethiopia. Moreover it is important to trigger research institutions/Universities to involve in such community based researches in accessing quality and cost effective solar products to rural end users. These all enhance the demand of Pico PV in off grid rural households, areas for which solar PV system will be primary (not an alternative) source of energy since grid connection to be unlikely to happen in the near future due to electricity distribution difficulties for scattered rural settlement in the Ethiopia context.
