Solar Panel Energy: Distribution through Microfranchising

The use of kerosene for lighting in developing countries causes serious health, environmental, educational and income problems for poor communities. SolarAid, a new and fast-growing non-profit organisation, estimates that there are 200 million kerosene lamps in Africa, with each one generating approximately a tonne of CO2 over 10 years. It wants to replace all of them with solar lamps by 2020, either through its own operations or in partnership with others.

Sunny Money is SolarAid’s new micro-franchise brand that applies the proven marketing and operational concepts of traditional franchising to small businesses in the developing world, and allows the rapid creation of distribution networks in rural and urban areas.

Sunny Money is recruiting a large network of micro-franchisees from poor communities in East Africa to sell solar lamps and replace kerosene. It works with local communities to recruit and train micro-franchisees, with strict training and sales targets. Sunny Money supports them with new product development, manufacturing, marketing and branding.

Results are surpassing expectations, promising huge potential for scale-up. Micro-franchisees show a high success rate and customer feedback is overwhelmingly positive. The plan is to scale this up across Africa and then into OECD markets too.

As well as microsolar entrepreneurship, SolarAid installs larger solar systems at schools, health clinics and community centres, carries out educational work on solar power and climate change in schools in the UK and East Africa, and is building the capacity of the East African solar industry through the construction of a Solar Academy in Lusaka, Zambia. It is also starting a pilot project in South America with indigenous communities.

Source: Nicolas Sireau, Executive Director, Solar Aid (www.solar-aid.org).