Market segmentation for Indonesian government PV programs Sample Clauses

Market segmentation for Indonesian government PV programs. To be eligible to the social PV program, villages and consumers were to be selected along determined criteria by relevant governmental departments. The project was then tendered. The winning company would install the product, which had to fulfil qualification standards determined by the government, and would conduct training sessions for the local technicians regarding installation and after sales services. The majority of the systems were granted free of charge to the end-users, on the rationale that the targeted consumers are very poor people who cannot afford down payments or monthly payments. The end-users received the systems (typically a 50 Wp module, 70 Ah battery, charge regulator, three 6W lights, a battery box) for free and were supposed to pay a monthly fee of IDR 10,000 (= USD 1). This money was to be collected by the KUD (local cooperatives) and used for setting up a revolving fund (IDR 7,000), building a reserve fund for battery replacement (IDR 2,000) and covering cooperative management fees (IDR 1,000). Unfortunately, most of these projects ended up in just supplying and installing the PV systems, and no maintenance nor collection of fees was ever done afterwards The government PV programs contributed to the installation of 12 MW of solar PV systems. 300-350,000 SHS were installed in the country. However, observers state that only a minor fraction is thought to be still functioning. Due to different reasons (systems being distributed for free; lack of awareness, training and capacity building in operation and maintenance), systems have been abandoned or thrown away, and system components, especially modules and batteries, were simply sold. Government programs thus showed very limited success. ▪ Market segmentation: Willingness to pay for solar energy access varies along socioeconomic situations. Adopting a differentiated approach according to the target population seems an appropriate way of promoting a greater access to solar energy.
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