{"id":3743,"date":"2022-12-10T11:42:14","date_gmt":"2022-12-10T09:42:14","guid":{"rendered":"https:\/\/solareyesinternational.com\/?p=3743"},"modified":"2023-05-06T18:57:11","modified_gmt":"2023-05-06T16:57:11","slug":"10-challenges-of-solar-companies-in-developing-countries","status":"publish","type":"post","link":"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/","title":{"rendered":"12 CHALLENGES FACED BY SOLAR COMPANIES IN DEVELOPING COUNTRIES"},"content":{"rendered":"\n<p>You might think owning a solar company in a developing country is an easy ride until you own one. <\/p>\n\n\n\n<p>Solar companies in developing countries face everyday challenges, but they still push to sail through and contribute to a brighter future where everyone has access to clean energy. In this article we are going to delve into the various challenges these wonderful companies are facing globally.  <\/p>\n\n\n\n<p>***&nbsp;<em>ALSO CHECK:<\/em>&nbsp;<a href=\"https:\/\/solareyesinternational.com\/what-is-a-solar-home-system-shs\/\">WHAT IS A SOLAR HOME SYSTEM (SHS) \u2013 7 treasure things to know<\/a><\/p>\n\n\n\n<p>We have written this article for three main reasons which are:<\/p>\n\n\n\n<ol>\n<li>Help raise awareness and spread the information to anyone interested in knowing the problems that solar companies in developing countries face daily. Maybe some people will help with solutions to these challenges<\/li>\n\n\n\n<li>Help those looking to start solar companies in developing countries such that they will know the challenges to expect. Maybe they can get prepared for it and find solutions in advance<\/li>\n\n\n\n<li>To help developing countries&#8217; governments realize the challenges companies in their countries face. Maybe they can easily solve some of the challenges<\/li>\n<\/ol>\n\n\n\n<p><a href=\"https:\/\/solareyesinternational.com\/energy-skills-institutions-in-africa\/\">IMPORTANCE OF ENERGY SKILLS TRAINING INSTITUTIONS IN AFRICA \u2013 7 Institutions to watch<\/a><\/p>\n\n\n\n<p>Read through to understand challenges faced by solar companies in developing countries. Don&#8217;t forget to comment with extra problems you have realized in your country or possible solutions you think might help. <\/p>\n\n\n\n<p>While you are, check how you can size your own solar system <a href=\"https:\/\/solareyesinternational.com\/how-to-size-a-solar-system\/\">here.<\/a><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_64 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#Here_are_the_challenges\" title=\"Here are the challenges\">Here are the challenges<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#1_Financing_challenges\" title=\"1. Financing challenges\">1. Financing challenges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#2_Fake_products\" title=\"2. Fake products\">2. Fake products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#3_Products_not_designed_for_developing_countries_markets\" title=\"3. Products not designed for developing countries markets\">3. Products not designed for developing countries markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#4_Skills_shortage\" title=\"4. Skills shortage \">4. Skills shortage <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#5_New_technology\" title=\"5. New technology\">5. New technology<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#6_Lack_of_in-country_structures\" title=\"6. Lack of in-country structures\">6. Lack of in-country structures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#7_Unsupportive_government\" title=\"7. Unsupportive government\">7. Unsupportive government<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#8_Last_mile_distribution_challenges\" title=\"8. Last mile distribution challenges\">8. Last mile distribution challenges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#9_Poor_market\" title=\"9. Poor market\">9. Poor market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#10_Logistics_challenges\" title=\"10. Logistics challenges\">10. Logistics challenges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#11_High_initial_costs\" title=\"11. High initial costs\">11. High initial costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#12_Government_subsidies\" title=\"12. Government subsidies\">12. Government subsidies<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/solareyesinternational.com\/10-challenges-of-solar-companies-in-developing-countries\/#Keep_following_%E2%80%93_we_will_publish_something\" title=\"Keep following &#8211; we will publish something!\">Keep following &#8211; we will publish something!<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Here_are_the_challenges\"><\/span>Here are the challenges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Financing_challenges\"><\/span>1. Financing challenges<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Lack of capital grapples solar companies in developing countries and their growth and existence. Like any other business there is need for capital to start and maintain a solar business. <\/p>\n\n\n\n<p><em>CHECK:<\/em> <a href=\"https:\/\/solareyesinternational.com\/vitalite-electrifying-zambia\/\">VITALITE \u2013 Electrifying Zambian rural and peri-urban households through solar<\/a><\/p>\n\n\n\n<p>The other financing challenge is that solar companies cannot extend financing mechanisms to end users when they themselves have no access to financing. Nowadays financing models such as pay as you go (PAYGO), power as a service (PAAS) and lease to own enables customers to have a solar system without the need to pay upfront. For such financing mechanisms to work solar companies have to be financed first or have access to financing. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Fake_products\"><\/span>2. Fake products<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There has been an alarming mushrooming of fake solar products in the markets especially for developing countries. Fake products simply kill the markets by totally removing the end users&#8217; confidence on solar products. This puts solar companies in developing countries out of business. <\/p>\n\n\n\n<p>There has been concerns on intentional wrong technical specifications on some products entering the markets. This include some products declared to be lithium ion based battery products but only for them to last a few months if not days. <\/p>\n\n\n\n<p>*** ALSO CHECK:&nbsp;<a href=\"https:\/\/solareyesinternational.com\/how-to-start-a-new-job-the-right-way\/\">How to start a new job the right way \u2013 11 Tips<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Products_not_designed_for_developing_countries_markets\"><\/span>3. Products not designed for developing countries markets<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Some products are not designed for developing countries even though they are meant to be sold in developing countries. Developing countries have different requirements and electrical standards which in some cases are not obeyed when some products are designed. Culture, environmental conditions and way of living enhance the way products are used and if not taken into consideration during product design there is risk of many product becoming just products looking for use cases. <\/p>\n\n\n\n<p><a href=\"http:\/\/also%20check:%20How%20to%20Master%20a%20Job%20Interview%20%E2%80%93%2015%20Steps\/\">How to Master a Job Interview \u2013 15 Steps<\/a><\/p>\n\n\n\n<p>Many products are designed with the so called experts that have never been or lived in a developing country. Hence their products will be like designed in Mars but to be used on Earth. And this reduces the uptake of such products and reduces end users&#8217; confidence on solar systems in general. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Skills_shortage\"><\/span>4. Skills shortage <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many fly by night solar company owners masquerading as solar experts do not really have the skills to take the sector forward in their respective regions. Proper solar energy skills from installation to maintenance are vital for perennial existence of solar energy business. <\/p>\n\n\n\n<p><em>CHECK:<\/em> &nbsp;<a href=\"https:\/\/solareyesinternational.com\/how-to-launch-a-minimum-viable-product\/\">HOW TO LAUNCH A MINIMUM VIABLE PRODUCT (MVP) \u2013 10 explicit steps anyone can follow<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_New_technology\"><\/span>5. New technology<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The fact that solar is a new technology means that less people understand it. This is even magnified when it comes to end users. There is need for awareness on use of solar systems to solve this problem. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Lack_of_in-country_structures\"><\/span>6. Lack of in-country structures<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is where associations and proper government channels on solar systems or renewable energy in general come into play. Many countries do not have a renewable energy policy or master plan hence it will be difficult to see promotion of renewable energy systems like solar energy in such countries. <\/p>\n\n\n\n<p><a href=\"https:\/\/solareyesinternational.com\/living-under-the-grid-in-zimbabwe\/\">LIVING UNDER THE GRID IN ZIMBABWE \u2013 little known facts about this catastrophe<\/a><\/p>\n\n\n\n<p>Renewable energy associations or specifically solar energy associations can play a pivotal role in combined efforts for local promotion of solar energy. For example it is easier for an association with proper structures to lobby the government to incorporate renewable energy policies than it is for an individual person or solar company. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Unsupportive_government\"><\/span>7. Unsupportive government<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Governments in developing countries usually turn a blind eye in promoting and crafting policies that enable people to use solar and go green. Ambitious targets with proper roadmaps are needed. This will help solar companies in developing countries to effectively contribute to going green. <\/p>\n\n\n\n<p><a href=\"https:\/\/solareyesinternational.com\/how-to-spot-a-fake-job-14-indicators\/\">HOW TO SPOT A FAKE JOB \u2013 14 Indicators<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Last_mile_distribution_challenges\"><\/span>8. Last mile distribution challenges<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Getting the solar products to the final end user is a huge challenge in developing countries. End users are usually in remote and difficult to access areas. These areas usually do not have roads and mobile telephone network. In some cases people live in hilly areas. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_Poor_market\"><\/span>9. Poor market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is one of the challenges solar companies in developing countries face. People in developed countries usually live in poverty and therefore they cannot afford some of the solar products even if they also want to go solar. <\/p>\n\n\n\n<p>*** ALSO CHECK:&nbsp;<a href=\"https:\/\/solareyesinternational.com\/how-to-launch-a-minimum-viable-product\/\">HOW TO LAUNCH A MINIMUM VIABLE PRODUCT (MVP) \u2013 11 explicit steps anyone can follow<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Logistics_challenges\"><\/span>10. Logistics challenges<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It normally takes at least one to two months on average for solar companies in developing countries to import solar products for their local sales and distribution. Due to COVID 19 these timeframes have doubled and shipment costs more than doubled. All these costs are somehow passed to the end user and hence derail the uptake of solar systems. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"11_High_initial_costs\"><\/span>11. High initial costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Solar energy utilization as a substitute for power generation in developing countries has suffered significantly from the high initial purchase cost when compared to using traditional sources from power utility companies. As a result solar companies in developing countries find it difficult to push solar products. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"12_Government_subsidies\"><\/span>12. Government subsidies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Government subsidies on fossil based electricity means reduce the uptake of renewable energy electricity. For example the cost of fossil based electricity in many developing countries is less than USD0.12 kWh which does not reflect the true cost as it is subsidized.  <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/solareyesinternational.com\/wp-content\/uploads\/2022\/12\/Minimum-viable-product-1024x768.jpg\" alt=\"minimum viable product\" class=\"wp-image-3748\"\/><\/figure>\n\n\n\n<p>For an effective renewable energy penetration government subsidies must be reviewed especially for markets that have capable users.  <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keep_following_%E2%80%93_we_will_publish_something\"><\/span>Keep following &#8211; we will publish something!<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Keep following this page as we will soon publish ways of overcoming these problems faced by solar companies in developing countries. <\/p>\n\n\n\n<p><strong>FOLLOW US ON SOCIAL MEDIA<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/t.me\/+Y5UixY8F8uk0YjM0\" target=\"_blank\" rel=\"noreferrer noopener\"><mark>TELEGRAM GROUP<br><\/mark><\/a><a href=\"https:\/\/www.linkedin.com\/company\/solareyes-international\/\" target=\"_blank\" rel=\"noreferrer noopener\"><mark>LINKEDIN<br><\/mark><\/a><a href=\"https:\/\/www.facebook.com\/SolarEyesInt\" target=\"_blank\" rel=\"noreferrer noopener\"><mark>FACEBOOK<\/mark><\/a><\/p>\n\n\n\n<p>*** ALSO CHECK:&nbsp;<a href=\"https:\/\/solareyesinternational.com\/how-to-launch-a-minimum-viable-product\/\">HOW TO LAUNCH A MINIMUM VIABLE PRODUCT (MVP) \u2013 11 explicit steps anyone can follow<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/solareyesinternational.com\/vitalite-electrifying-zambia\/\">VITALITE \u2013 Electrifying Zambian rural and peri-urban households through solar<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/solareyesinternational.com\/solar-panels-on-your-roof-in-south-africa-here-is-how-to-qualify-for-a-tax-rebate\/\">Solar Panels on Your Roof  in South Africa? Here is How to Qualify for a Tax Rebate<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/solareyesinternational.com\/10-ways-of-financing-your-solar-system\/\">10 Ways of Financing your Solar System<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/solareyesinternational.com\/solar-panel-losses-all-you-need-to-know-tips-on-how-to-avoid-them\/\">SOLAR PANEL LOSSES: All you Need to Know + Tips on how to avoid them<\/a><span contenteditable=\"false\" style=\"pointer-events:none;user-select:none;-webkit-user-select:none;-moz-user-select:none;-ms-user-select:none;\"><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A list of challenges faced by solar companies in developing countries. <\/p>\n","protected":false},"author":1,"featured_media":3926,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,4],"tags":[18,133,94,103,132,350,351],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/solareyesinternational.com\/wp-content\/uploads\/2022\/12\/solar-companies-in-developing-countries-V2.png","_links":{"self":[{"href":"https:\/\/solareyesinternational.com\/wp-json\/wp\/v2\/posts\/3743"}],"collection":[{"href":"https:\/\/solareyesinternational.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/solareyesinternational.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/solareyesinternational.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/solareyesinternational.com\/wp-json\/wp\/v2\/comments?post=3743"}],"version-history":[{"count":29,"href":"https:\/\/solareyesinternational.com\/wp-json\/wp\/v2\/posts\/3743\/revisions"}],"predecessor-version":[{"id":6809,"href":"https:\/\/solareyesinternational.com\/wp-json\/wp\/v2\/posts\/3743\/revisions\/6809"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/solareyesinternational.com\/wp-json\/wp\/v2\/media\/3926"}],"wp:attachment":[{"href":"https:\/\/solareyesinternational.com\/wp-json\/wp\/v2\/media?parent=3743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/solareyesinternational.com\/wp-json\/wp\/v2\/categories?post=3743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/solareyesinternational.com\/wp-json\/wp\/v2\/tags?post=3743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}