The cost of acquiring a solar home system is outrageously high for an average middle-class and lower-class citizen in many developing countries, particularly Nigeria. It is one thing to consider the comparative cost of using alternative fuel sources over time to installing solar, which is highly capital intensive. This high initial capital cost has affected the rate of adopting this technology. Also, the uncontrolled technical markets make it easy for an uninformed person to fall into the hands of quark installers after investing heavily in solar photovoltaic technology.
According to an article by Plico, “Solar as a service (SAAS) is an exciting, radical departure from the current model of how solar systems are installed and sold”. It is a long-term power purchase agreement that allows consumers to access power quickly and reliably. It is a low-risk investment for the consumer. They do not have to bear the initial capital cost or worry about maintenance while having access to sustainable power at a predictable cost.
Here is how this model works;
The Service providers provide solar systems to clients on a “rental basis”. Here, the entire system is set up in the client space, and the client pays a given amount, weekly, monthly or as agreed by both parties for the energy consumed. In this model, the service provider is totally responsible for providing and maintaining the system. In contrast, the consumers provide the mounting space, utilise the energy generated and pay for the service.
Given the high upfront cost of purchasing and installing solar photovoltaic systems, an energy consumer might prefer to utilise this energy provided on a rental basis and pay for energy consumed without having to bear the burden of possible battery replacements or system maintenance. It is an undoubted fact that power is an essential backbone and drive of economic growth and development. Several models have been deployed to increase energy access in the sub-Saharan region. However, are the service providers ready to bear the entire system risk? This is yet another model worth exploring.