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Welcome Team Su. PER Jessica Hickey Richard Huskey Heather Mc. Ginnis Nick Mc. Millan
Recommendation 1 Develop a product that meets the specific needs of a particular market.
Recommendation 2 Su. PER is too expensive
Recommendation 3 Su. PER may be Overbuilt
Why select a specific target market? • Each target market has different consumer demands and behaviors • What is right for one market may not be right for another
Each market has different buyer behaviors • African consumers buy units – 14 -50 Wp systems – Units start at $100 including installation – Average system size is 20 Wp – DC is preferred • Latin American and Philippine consumers prefer to rent units – 35 -50 Wp systems – Rental fees $10 -35/month – AC or DC is preferred based on the appliances a customer already has
Pricing • Su. PER too expensive • Average retail price of current SHS is $150 installed (20 Wp)
Micro-Financing • Here is how it actually works – 100 days to 2 years maximum – 5 year loans are uncommon – Used for income generating activities, not quality of life improvements
Price buildups make a relatively inexpensive unit have a high final retail cost. • Shipping: • Tariffs and V. A. T: • Retailer Margins: 50% increase 35% increase 20% increase • $500 production cost becomes $1, 220+ (this number assumes only one dealer markup)
Why Su. PER may be overbuilt? Current demands from rural consumer vs. Current design specifications of Su. PER
Too much design, not enough consumer focus
As designed, Su. PER is good for. . . • • Community centers Telecenters Education and Schoolhouses Medical purposes – i. e. refrigeration for vaccines – Small-scale health centers • NGO projects
Importance of Cost as a purchase motivator
What is your next step? As previously mentioned, choose a target market.
Lets say you choose Africa
Ok now what? Contact those who will help you better understand your target market’s needs
ESDA Energy for Sustainable Development Kenya
How will they help you? • ESDA will help you identify potential PV manufacturers, suppliers, importers, etc.
GTC Global Transition Consulting
How will they help you? • Assist in the development of a proper business model • Due diligence for investors (add credibility to your project) • Primary market research will assist in the fine tuning of Su. PER’s design specs
Kickstart Take new technologies and teach local entrepreneurs how to sell them
Take your product to market ESDA, GTC, and Kick. Start will make this happen