LO LOW AN AND MIDDL DDLE INCOME OME ROOF OFTOP TOP SOLA - PowerPoint PPT Presentation

LO LOW AN AND MIDDL DDLE INCOME OME ROOF OFTOP TOP SOLA LAR PV AP APPROA ROACHES CHES IN SOUTH TH AF AFRICA CA Sli lide de de deck – su summary mary and recommenda ommendations tions 29 9 January nuary 2018

Pr Projec oject bac backgr kgroun ound 2

Proj oject ect pu purpo pose se and objectiv ectives es Purp rpos ose : : Identify and pilot promising policy and technology 3 approaches to make rooftop PV accessible to more of the South African population Objecti ctives es: Determine suitable approaches for deployment of • solar PV initiatives targeting low- and middle-income households Consult with stakeholders • Identify potential strategic partners • Recommend an implementation plan •

Se Setting ting the he sc scen ene 4

Study udy boundary undary and pr principl ciples es 1. 1. Consider ider opp pport rtunitie nities for green eenfie field ld an and brownfield field pr proje jects ts 5 2. Draw 2. aw on local al an and intern ernati tional al exper erience ience 3. 3. Tar arget et low- an and middle le-in income come HHs Hs with existing isting connecti ction to the he gri rid Focus on initiatives that provide economic benefits to HHs, rather than a ▪ mere improved access to electricity 4. Consider 4. ider mar arket ket-dri riven ven ap approac aches hes: Promote ownership ▪ Systems needs to be paid off by HHs one way or another - not a giveaway ▪ Maintenance costs to be paid by HHs ▪ 5. Tak 5. ake cognisan isance ce of af affordab ability ility level els of t tar argeted eted HHs

TAR ARGET ET MAR ARKE KET PROF OFILES ILES AN AND BAR ARRIERS IERS OF OF AD ADOP OPTIO TIONS NS Low-income ncome HH 6

TAR ARGET ET MAR ARKE KET PROF OFILES ILES AN AND BAR ARRIERS IERS OF OF AD ADOP OPTIO TIONS NS Midd ddle le-income ncome HH HH 7

Key consider siderations tions Low income market will not scale or Innovative Targeted, intentional 8 develop under the same incentives approaches need to incentives required structures designed for the middle to be designed high-income market KEY SUCCESS CCESS FACTORS CTORS Accessibility and Community Consumer Sustainability Compatibility affordability engagement protection and flexibility and integration • Deep energy cost • Putting communities • Protection from • Encourage long-term • Do not undermine savings at the center predatory market development existing RE and EE lending/exploitation programmes • Direct support • Partnering with local • Be flexible to for financial gain organisations accommodate • Complement and be changes in conditions integrated with • Community an circumstances existing programmes ownership over time targeting low-income HH

Reviewe ewed interna ernational tional case se st studi udies es 9 Tunisia’s on Bill China’s Solar Energy for Financing ncing Poverty rty Alleviati tion on Programme mme Programme mme (SEP EPAP AP) India’s Rent - Mexico’s Subsidised a-Roof of Solar ar Rooft ftop op PV Programm mme Syst stem em SASH/MAS /MASH RISE initi tiati tive ve programme mme

Purpose/ se/ Provide access to more affordable electricity • objec ective ive of the Reduce subsidy burden born by the national distributor • Tunisia’s on Bill To improve energy security in Tunisia (demand > supply) initiati tive ve • Financing ncing Programme mme Impleme menti ting ng Tunisian government via The National Agency for Energy agent nt Management (ANME) Low income, underserved, residential households eligible for Target group up India’s Rent -a-Roof Roof 1kWp – 2kWp solar PV systems Programme mme System installations were funded through credit from a • bank and subsidies from the government: 30% subsidy on the system • 70% loan at low interest rate over seven years • China’s Solar Energy Systems were designed for self-sufficiency; excess • for Povert rty Alleviati tion on electricity was “banked”, i.e. NET METERING Approach ach Distribution company paid for bi-directional metering • Programme mme (SEP EPAP AP) installation Authorised installers were responsible for applications on • behalf of willing consumers Mexico’s Subsidised Loan repayments were guaranteed through payments by • Solar ar Rooft ftop op PV distribution company’s billing infrastructure Monthly repayments – lower than electricity bills • Syst stem em Hugely dependent on subsidy • Different energy mix to Tunisia and relative cost of • Replicab cabili ility ty in electricity – motivation and financial model very different MASH programme mme SA SA Similar rollout model (and similar challenges) as with SA • SWH subsidy program, though ‘on bill’ important mechanism 10

Long-term goal - making its capital, Gandhinagar a 100% • Purpose/ e/ solar powered city Tunisia’s on Bill object ctive ive of the Starting point - 5MW solar rooftop public-private • initiati tive ve Financing ncing Programme mme partnership project Impleme menti ting ng Provincial government of Gujarat • agent nt The International Finance Corporation • India’s Rent -a-Roof Roof Programme mme Public buildings (schools, hospitals and offices) • Target et group up Private residences • A Public Private Partnership through 25 year-concession • China’s Solar Energy Implemented by two project developers • for Povert rty Alleviati tion on SunEdison and Azure Power o Build, own, operate model (BOO) • Programme mme (SEP EPAP AP) Approach ach About 500 private residences receive rental income form • hosting the panels Residential systems – 1 kW in size o Mexico’s Subsidised Generated electricity is sold to the distribution company at • Feed-In-Tariff Solar ar Rooft ftop op PV Syst stem em Viability for a low-income households is a concern: • Roof size (India’s system required 240 - 320 sq m of o Replicab cabili ility ty in rooftop space) SA SA Roof ‘s structural integrity o MASH programme mme Theft and vandalism o Selection process o 11

Purpose/ se/ Tunisia’s on Bill To alleviate energy poverty in remote areas of China • object ctive ive of the To provide a market for solar PV manufacturers during a • Financing ncing Programme mme slump in demand initiati tive ve National Energy Administration (NEA) and State Council Implemen ementi ting ng Leading Group Office of Poverty Alleviation and Development India’s Rent -a-Roof Roof agent nt (CPAD) Programme mme Poor rural communities especially in the less developed Target group up region of Western China e.g. the Tibetan Plateau (2 million HHs in 3 5000 villages) China’s Solar Energy Fully subsidised programme (US$4 billion) • for Povert rty Alleviati tion on Funding was made available through CSR of companies • Programme mme (SEP EPAP AP) and two development banks No investigation of local needs - poor consultation with • Approach ach beneficiaries No planning and no provision for maintenance Mexico’s Subsidised • Benefits to HHs were a fraction to what was planned • Solar ar Rooft ftop op PV originally Syst stem em Highly capital intensive – SA can not afford such • Replicab cabili ility ty in programmes MASH programme mme SA SA Not a sustainable solution • Limited benefits to the targeted groups • 12