Solar Home System Market Practices, Opportunities and Challenges: the case of Private Importer Companies in Addis Ababa

Abstract

The main objective of the research is to assess the Solar Home System (SHS) market practices, opportunities and challenges in the case of private importer companies in Addis Ababa. The research type is descriptive and exploratory. Primary data were gathered through questionnaire and interview. Thirty private importer companies and ten major stakeholders of the sector participated on the study. From the result of Exploratory Factor Analysis: i) Government role on regulation and market control, ii) Promotion, price and aftersales service, iii) Access to finance and foreign currency and iv) Infrastructure and skilled workforce have been identified as the four underlying factors on the challenges of SHS market. The practice and opportunities of SHS market are assessed through interview of ten major stakeholders. The foremost opportunities for private importer companies engaged on importing SHS products are National Electrification Program, government policy and attention towards clean energy i.e. solar, large off-grid area, growing demand for the products and availability of different supports for the sector. The practices of SHS in respect to private importer companies is viewed in two aspects: the engagement with stakeholders and their participation in the SHS market. The regulatory framework of SHS market is complex. The participation of private sector in SHS market with all the bottlenecks, has a promissory start but not adequate in comparison to the high market demand. It is recommended for the private sector to undertake market assessment and disseminate products to underserved regions. It is also essential for ESEDA to aggressively work for on boarding members to enrich its resources and finally projects implemented by international development organizations needs to focus on local skill transfer to create long lasting impacts on the sector.