Understanding Customers

1.3 billion People, almost a quarter of human population have no access to electricity. Of which 635 million live in Africa and 526 million in South Asia.

Decentralized electrification using renewable sources of energy is emerging as the solution to fill the gap left in socio-economic development of those in need: investments in small and medium scale electrification projects have a positive impact on improving the energy situation of population in underserved locations. In addition, it has been observed that solar energy has the preference of communities in off grid locations. This might be explained by the modularity of solar making possible to set up the smallest or the largest power generation unit and subsequently fitting within the smallest or the largest budget.

However, most of the off grid energy market often interrelates with high percentage of population living in poverty. Even seemingly modestly priced, solar products can be prohibitively expensive for low income consumers who are accustomed to purchasing energy in small increments. It is therefore important to recognize that local conditions will demand tailored solutions and approaches.

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What are the problems off grid energy customers want to solve, what are the benefits they want to see, what is their ability to pay for energy access? Keeping these questions in mind, what should be the right implementation strategies for off grid entrepreneurs, how should they develop profitable and sustainable revenue streams?

The relation between what an off grid solar entrepreneur offers and what his customers are expecting is what can make his business fail or succeed. Off grid solar entrepreneurs should always find the minimum balance between products features and customers expectations. Translated to off grid context, when planning for products or services, entrepreneurs should find out products having the minimum specifications to meet the needs, preference and budget limitations of customers. This means that off grid solar systems should be designed to supply a set amount of power for a set amount of time such as they fully meet customers energy needs for the preset amount of time.

The trick here is that many communities are skeptical about solar energy and consider them risky investments. They may be unfamiliar with solar products, making it difficult for them to discern quality. Alternatively, they may have had a negative experience with unreliable solar products. Accordingly, to introduce solar energy products to low -income communities, entrepreneurs must prioritize building and maintaining trust with the people they seek to serve. In that view, understanding customers is crucial.

Understanding customers is also central when it comes to charge them. Conventional payment schemes are often not compatible with off grid customers. In addition of understanding customers motivations, needs and preferences, off grid solar entrepreneur should understand customers' ability to pay and then design the most relevant and appropriate financing and payment model to help consumers purchase their products.