By Danny Kennedy
Jaun Rodriguez is sitting in a dark room to raise awareness of the potential of solar electricity to bring light to the masses in Guatemala. Here’s the backstory:
The most exciting edge of darkness we are rolling back with clean energy is often in the developing or majority world, where people still don’t get to take electricity service for granted. Indeed, many folk are yet to experience an electric light let alone all the other benefits like entertainment, education, the internet, blended margaritas and electric cooking, which we all enjoy. Total there are 1.6 billion throughout the world who still rely on candles and kerosene to light their homes.
From a business point-of-view this “bottom of the pyramid” opportunity is the big one. But breaking through and making the adoption of clean energy like solar is as big a challenge in the Global South as mainstreaming solar power in middle America. One of the keys to unlock the potential is financing the systems for customers.
Just as the upfront cost of solar was a barrier to entry for many middle-class Americans until the solar lease become popular and available from companies like Sungevity (full disclosure: I work there) so too, buying a solar light for a family in Central America may be prohibitive to them benefitting from this technology. Being able to pay for solar electricity as a service, over time, rather than upfront as when you buy the hardware, makes solar a realistic energy source for 2.6 million people in Guatemala.
Which is where Quetsol comes in – the innovative social enterprise has already installed thousands of solar lighting systems but is now seeking to introduce a ground breaking “pay-as-you-go” solar proposition to its customer base in Central America. The new model bridges the gap between the high price of solar technology and the severe energy needs of Guatemala’s poorest rural communities without access to electricity. By eliminating the high upfront cost that prevents millions of people from purchasing solar, PAYG opens up clean energy to thousands more. And by providing an easy financing option—pay-when-you-can vs. pay-on-this-date—it will get this solar into more homes, faster.
Quetsol claims that their current solar kits save clients 20% of their previous candle and kerosene costs, and the new model elevates this to 44% savings. And perhaps the most promising aspect is that a Pay-for-Service model like this one has the potential to be replicated as easily and successfully as telecommunication companies have done throughout the world. Indeed, Quetsol expects to see sales increase by 1700%, distributing 100,000 kits and reaching over 505,000 people in the next five years.
So it is all good news but they need some capital to make it happen, which is why they are running an Indiegogo campaign. I don’t think I am meant to push my readers there – but I must say I like the way the CEO of Quetsol is raising awareness of their fundraising drive: by sitting in the dark till he gets the funds necessary to roll out this groundbreaking business. Juan Rodriguez will sit in a pitch-black room and refuse to turn on his lights until their goal is reached.
We need audacious solar entrepreneurs if we are going to succeed bringing solar to all – I wrote a book about this last year. So, if you are so moved please do visit Quetsol’s website and their Indiegogo page to help them turn on the lights for Juan and, more importantly, for thousands of Guatemalans. Shine on indeed!
Originally posted on Forbes.com
