Consumer Finance Operations Planning Handbook
Early development and rapid growth in any business can be stressful, and may be especially difficult in a new industry. To help companies succeed through these periods, Solar Development Foundation can facilitate access to a variety of business development services and seed capital for pilot operations for enterprises in the off-grid energy service sector. This support can be provided on a shared-risk basis. Solar Development Foundation is a not-for-profit organization funded by international and private donors who understand the important role businesses can play in meeting certain social and environmental needs in the developing world. Foundation support, ranging from US$ 5,000 to US$ 100,000, is typically intended to help companies prepare for substantial growth and attract the necessary capital. Business development services can be financed through low-interest loans and/or small grants. Eligible companies include: Retailers or distributors of solar home systems or related products Renewable energy service companies, providing equipment on a fee-for-service basis Banks and leasing companies with consumer credit programs for PV solar systems System integrators Importers of solar products Local equipment assemblers and manufacturers of solar modules and system components Solar Development Foundation is a part of Solar Development Group, which also includes Solar Development Capital, a commercial private equity fund with a range of private and institutional investors. Solar Development Capital offers investment capital from US$ 100,000 to US$ 2,000,000 to private companies serving the off-grid power sector. Solar Development Foundation 2002
INTRODUCTION You are thinking about creating or expanding an off-grid energy business using renewable energy technologies such as photovoltaics (PV). The business looks promising because the untapped market for basic electrical service seems huge and the opportunity great. But the potential customers have little cash and you have concluded that to penetrate that market, some sort of extended customer payment terms consumer financing may be necessary. You also recognize that the government has usually been involved in the delivery of rural energy services, and that its policies will affect your business, either positively or negatively. Because this can be a rather complex business, you want to learn from others who have created off-grid energy businesses. This booklet includes a simplified overview of the solar industry and its future and is not expected to be your only reference. It is mainly to help you understand the basic types of solar businesses and to introduce the Consumer Financing Operations Support services of Solar Development Group (SDG) that have been created for entrepreneurs like you. It includes: An historical background of the PV industry, An overview of the markets for PV products and services, How customer finance can be arranged and what SDG has to offer to assist your company to develop a finance capability, Getting the most from this document Contents Main steps to building an off-grid energy business using renewable energy Expected Outputs An ability to undertake a rapid feasibility assessment Information for deciding on the strategy for a new or expanded PV business Estimated time for completion of a feasibility assessment Approximately one month for the rapid assessment What comes next? If the results of the rapid assessment show promise for developing or expanding a consumer finance component, the next step would be to conduct a market test and plan the business. That work could take from 8 to 18 months according to your market and your present stage of business development. A brief roadmap to the development of customer financing operations, and A checklist of information you can use to make decisions about developing your PV business. CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 3
HISTORICAL PERSPECTIVE Though there have been sales of PV systems in developing countries since the late 1970s, the industry developed slowly through the 1980s. Only in the mid and late 1990s did the sales of PV systems begin to rise rapidly. Today, many industry analysts believe that sales will continue to rise more than 20% per year. That growth will likely be driven by environmental pressures toward alternative energy use, by economic growth that allows more rural households to afford PV systems, and by continued improvements in both the technology and the capacity of companies to deliver it in a way that meets customer needs. World PV Production 1988-2001 400 United States Japan Europe Rest of World The photovoltaic cells that are the heart of PV systems have evolved over time with their manufacture beginning in the 1950s with cells made from single-crystal ( monocrystalline ) silicon. In the 1970s multiple-crystal ( polycrystalline ) silicon began to be used to make cells, and most recently thin-film manufacturing processes have been developed. Each of these manufacturing approaches has had the cost of production fall over time, with further reductions predicted for the future. MEGAWATTS 350 300 250 200 150 100 50 0 '88 '90 '92 '94 '96 '98 '00 YEAR From PV News, Paul Maycock, Editor. Yearly February Editions CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 4
PV BUSINESSES The PV business value chain is similar to that in other consumer durable goods industries: Component manufacturing: Making PV cells, assembling modules, manufacturing balance-of-system (BOS) components such as low-voltage lights, PV batteries, charge controllers and low-voltage DC appliances Wholesale distribution: Stocking components and complete PV systems for cash sales to large commercial, industrial and government customers; and supplying components to retail businesses Retail distribution: Providing PV systems to rural households, businesses and communities for cash, on credit terms or as rentals Maintenance provision: Offering services for the maintenance and repair of PV systems Most successful PV businesses combine several types of operations. The same company may retail systems to rural households while wholesaling to government, telecommunications companies and NGOs. Maintenance and installation services are almost always provided in combination with sales. Manufacturing may be combined with system sales, though it is more likely to be a specialty since the skills and marketing requirements are quite different from those of other types of PV businesses. Which PV business model is for you? Each business model requires a different mix of skills and finance: Typical company assets Business Model per $1MM sales Required Management Skills Market Scope Manufacturing Wholesaling Maintenance and installation Retail Cash sales Retail Credit sales with consumer finance partner Retail Credit sales with consumer finance by the company Hire-purchase or system rental (fee-for-service) $500,000 to $1 Million $400,000 to $500,000 $250,000 to $500,000 $400,000 to $500,000 $500,000 to $750,000 (depends on how quickly the partner pays) $1 - $2 Million (depends on financing terms) Engineering Sales and marketing to businesses New product development Industrial labor relations Sales and marketing to business and government System design Distribution channel development Technical Rural logistics Distribution channel development Sales and marketing to businesses, consumers and government Consumer sales and marketing System design and packaging Distribution channel development Rural logistics Consumer sales and marketing System design, packaging Distribution channel development Rural logistics Coordination with finance partner Consumer sales and marketing System design, packaging Distribution channel development After-sales support and maintenance Rural logistics Collections Credit policy/evaluations Corporate finance $2 - $3 Million Consumer sales and marketing System design, packaging Distribution channel development Rural logistics Collections Customer support and maintenance Corporate finance Public relations, including government Variable (depends on customs duties, component standards, foreign competition, and other uncontrollable factors) Moderate to large Variable (depends on outside projects to provide systems) Limited Potentially large (depends on availability and suitability of financial services to customers) Potentially large Potentially very large CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 5
THE MARKETS FOR PV PRODUCTS AND SERVICES What are the different markets for PV products? Most are located where the amount of electricity needed is modest, connection to the power grid is impractical and other sources of power are more expensive or of lower quality than PV. Applications include power for: Commercial Industrial Market Rural Electricity Market Urban and Grid Power Market Telecommunications: Remote telephone service, mobile phone systems and microwave relay links Navigational aids: Marker lights for towers, navigational reference points and shipping channel markers Cathodic protection: Electrical anti-corrosion systems for metal structures such as bridges and pipelines Institutional: Remote schools, government offices and health centers Water pumping: Remote village water supply and small scale irrigation Village electrification: Households and small businesses in remote communities Urban applications: Portable food stall lighting, illuminated highway signs, portable construction signs, parking meters, street lights Grid power services: National electricity grids, mostly through roof-top and other building-integrated systems The best market segment focus for a retail PV business will depend on local conditions as well as your interests and abilities. Sometimes it is possible to profitably specialize in only one market segment. Most companies have found, however, that by including different market segments, the business can develop faster and with less risk. The village electrification market Village electrification is sometimes viewed as the sleeping giant of international PV markets, consisting as it does of two billion people. Though this market is difficult to reach profitably because of access problems and generally low household incomes, if developed properly it can provide a long-term, stable income source with a large customer base. The long-term relationship with the customers and the strong service channels needed for village electrification can allow the company to more profitably penetrate other PV market segments and develop the markets for other products and services such as: Wireless telephone communications Bottled gas (LPG) Diesel engines and independent grid-based electrical services for rural industry and densely populated areas Electric fencing Village water supply Appliances such as TVs, radios and DVD players CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 6
CONSUMER FINANCING FOR DEVELOPING RURAL ELECTRIFICATION MARKETS Cash transactions are the simplest form of retail sales and require the least capital. The cash market, however, is typically limited to less than 5% of rural households and is easily saturated within a geographic region. Also, it is costly to provide after-sales and maintenance services to these customers because they are usually widely dispersed. Most successful PV businesses that market to rural households, therefore, have made arrangements for financing lower income customers as well as selling to cash customers. This strategy can increase the customer base from 20% to over 50% of rural household making the development of an after-sales maintenance and support structure economically practical and opening avenues for marketing other products to rural customers. The advantages of providing finance for credit sales or renting PV systems include: Increased market penetration: There is a potential for much greater market penetration, many times that of cash sales alone, Market concentration: With greatly increased market penetration comes the ability to concentrate customers in a small geographic area, allowing the development of permanent service centers near the customers, and Improved maintenance capability: Market concentration allows the company to provide rapid response maintenance at a lower cost, thereby increasing system reliability and customer satisfaction. The importance of maintenance In the early years of PV electrification, it was generally assumed that users could properly maintain the systems with minimal after-market support. That assumption has turned out to be wrong. As a result, a great many projects failed, giving PV a bad reputation as a rural electrification technology. Maintaining PV systems is not complex, but it does require specialist knowledge and logistics. Only where professional maintenance has been provided have most rural PV systems offered reliable service for more than a few years. Unfortunately, professional maintenance can be costly if there are large distances that technicians must travel to provide service. To offer professional maintenance at an acceptable cost, there must be 50-100 customers (sometimes as many as 500) within a half-day journey from the service center. That customer concentration allows a local technician to inexpensively visit all households in the serviced area and to respond quickly to customer complaints. To get so many customers in a small area, payments have to be low enough to allow a relatively high percentage of rural dwellers to afford systems. In response to this requirement, various schemes to provide credit for PV system purchase emerged. These strategies did increase market penetration, but in most cases payments were still too high to provide the customer density necessary to allow provision of low cost maintenance services. Sufficient customer density was achieved in the Pacific Islands when PV electrification projects switched from selling PV systems to households to renting them. Services provided to customers for the rental fee included professional maintenance and fees were in proportion to the size of the PV systems. This approach offered monthly costs low enough to allow more than half of the rural households to have PV systems. For businesses in areas where there are still very few PV systems in rural areas, providing system rentals or other forms of financing may be a good way to achieve the customer density needed to profitably offer spare parts supply and routine maintenance. CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 7
USING YOUR OWN FINANCING OR SOMEONE ELSE S Whenever possible, using existing credit channels is almost always to be preferred. Companies that undertake their own consumer financing face formidable challenges. They must: Raise additional capital to finance sales; Manage assets spread over a large area; Assess the creditworthiness of large numbers of applicants who have no prior credit experience and have little or no collateral; Ensure that systems are properly maintained and cared for during the financing term; and Collect funds continuously, efficiently, and in a highly disciplined manner from a large volume of dispersed customers. Unfortunately, there are very few rural credit channels that are structured in a way that can provide individual loans to customers for the purchase of PV systems. Therefore an increasing number of companies providing PV systems for rural customers are developing their own credit sales capability in order to increase sales and their level of market penetration. But regardless of whether a PV business provides its own credit finance, or relies on an external institution to provide customer credit or rents systems to users, developing a successful business that includes consumer finance requires a different, more complicated business structure than a simple cash sales approach. Government support for rural electrification: friend or foe? Most governments are under pressure to provide rural energy services. So to increase the rate of rural electrification, it is also becoming increasingly common to find subsidies and incentives being provided by governments to private companies for the provision of rural electrical services. But subsidies do not always provide the benefit intended. Sometimes the cost of accessing a subsidy is more than the value of the subsidy so you need to be careful to fully understand how the subsidy works and how it can affect your specific business. Contact the relevant government agencies responsible for rural electrification and learn what incentives and subsidies are available for you, but remember that experience shows that it can be risky to depend on government support to develop your business. Look for subsidies that are immediate and clearly offset specific costs. Beware of long-term operating subsidies. Even if a government sincerely wants to promote renewable energy it is common for there to be delays, budget constraints, complex bureaucratic requirements, changing priorities, and conflicts with conventional electricity supply interests. In recent years, the concept of public-private partnerships has gained increasing exposure. Ideally, such a partnership can use the strengths of each partner and avoid each partner s respective weaknesses. Government can provide the policy, regulatory and legal backdrop for rural energy development, guarantee market access and facilitate capital investment. The flexibility of private companies allows rapid development of rural energy services as they can quickly install, operate and provide the customer with a quality of service generally impossible for government to deliver. Where the government is stable and has a history of honoring agreements over the long term, such partnerships may be profitable. Where government does not have a history of consistency in its policies toward the private sector, the best approach is usually to focus on markets that do not require government support, while taking advantage of government support if offered when it can increase profitability without significantly increasing risk. CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 8
V ARIOUS SCHEMES FOR FINANCING END-USERS To complement cash sales, retail companies may use one or more of a variety of methods to allow customers to pay for their system acquisitions over time. The primary ones are: Sales on credit with credit financed by the company: The PV company acts as a supplier and a consumer finance company. This requires the PV company to have credit provision expertise and additional capital but keeps all transactions within the company. Sales on credit with credit financed externally: The PV company works with a micro-finance company to sell systems on credit terms. This allows the PV company to sell on credit without the need for added capital or the problems of providing credit. Customers are evaluated and payments are received externally. Hire/purchase: The PV company leases the systems to customers for a fee that pays the capital cost over an extended time, typically three to eight years. During the lease period, maintenance is provided by the company. After completion of the lease term, the customer buys the system for a nominal price and becomes responsible for maintenance. Finance may be by the company or from an external organization. PV system rental: The PV company rents the systems for a fee that pays the capital cost, maintenance and repair cost over an extended period, typically ten years or more. The customer never owns the systems and the fee charged includes the maintenance and repairs. This approach is sometimes called fee-for-service. Retail finance methods System Maintenance Cost Type Owner Responsibility Recovery Client Cost* Remarks Cash Client Client Full payment to seller in cash at time of sale. Credit, with separate finance institution Credit, with consumer finance by the company Hirepurchase, with finance by the company Hirepurchase, with separate finance institution System rental (feefor-service) Client Client System provider, then Client after payments are all made. System provider, then Client after payments are all made. Energy service company Client, unless a separate maintenance contract is used Client, unless a separate maintenance contract is used System provider during the term of the lease. Client after all payments are made. System provider during the term of the lease. Client after all payments are made. Energy service company or subcontractor Full payment to seller at time of sale. Repayment of loan to partner financial institution. Full payment to seller spread over term of loan. Payments to the system provider. Payments to a financial institution specializing in rural credit. Payment to an energy service company or subcontractor. US$500 to $900 (plus repairs and maintenance). Initial down payment (15%- 30%) plus payments over 2 to 3 years. Cost is the cash price plus interest (+ repairs and maintenance). Same as credit through consumer finance partner, often with shorter term. Similar to credit, except maintenance is almost always included. Similar to credit, except maintenance is almost always included. Initial deposit plus US$10-20 per month (includes all repairs and maintenance) Quick return on investment, but market limited to 2%-5% of the wealthiest households Traditional banks are reluctant to loan to rural households and few rural credit facilities will loan on consumer goods. Requires specialized skills within the company for the provision of credit. Hire-purchase allows easier system repossession in some countries, and may have tax advantages for corporate clients. Using a separate finance institution reduces capital requirements and management complexity Requires a large investment and high quality management. Provides the best market penetration due to low periodic cost to clients *Typical client cost for a fully installed 50-watt PV system. Prices for the solar components will more or less correspond with a change in size, although smaller systems tend to be more costly per watt and larger systems cheaper per watt. CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 9
GOOD BUSINESS PLANS HELP MAKE GOOD BUSINESSES Selling PV systems for cash is simple enough to allow planning a business informally by starting small and adjusting the business concept as experience is gained. But including consumer finance, particularly if the finance is to be provided by the PV company, makes the business more complex and the cost of structural errors large. Underestimating the technical, market, policy and financial challenges can have disastrous consequences, particularly for service-oriented enterprises, as is the case for those providing village electrification. A practical, wellconsidered business plan can greatly reduce business risk and help the entrepreneur follow the path of greatest opportunity and profit. Typical business planning task flow Prefeasibility Study Rapid Market Assessment Market Assessment Technical Specifications Fund Raising, Round 1 For Pilot Project Rapid Financial Analysis Institutional Analysis Organizational Structure Month 1 Typically preparation of a business plan has three major steps: Prefeasibility: The preliminary step of estimating the overall market potential using existing and easy-to-access information. Study: Careful consideration of the market, technical issues, organizational structure, the interface with government and other institutions and financial modeling of the business. This results in a preliminary business plan ready for testing through a pilot project. Pilot project: A well-monitored project following the business plan at a scale sufficient to test the plan yet small enough not to be a financial disaster if serious problems develop. A well-developed plan should lead to a successful pilot project, which will inspire confidence in your plan by investors, financiers and, of course, you and your equity partners. Pilot Project Full-Scale Project Financial Modeling And Business Plan Preparation Validation of: Technical Specifications Organizational Structure Financial Model & Business Plan Fund Raising, Round 2 Full-Scale Project The actual task list and timeline will vary depending on your local conditions, the present development level of your business and the business strategy that you and your investors wish to follow. The main issue in creating a business plan is to be realistic, considering the widest possible range of conditions that may exist for your business and how those conditions will affect the cost of doing business and profitability. 6 18 CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 10
SDG: SUPPORTING PV BUSINESS DEVELOPMENT Regardless of the business strategy and market segments targeted by your company, Solar Development Group (SDG) may be able to help. SDG is a source of capital and strategic business development support for enterprises in the off-grid energy service sector that have a potential for profitable growth. Eligible companies include: Retailers or distributors of solar home systems and related products and services, Banks and leasing companies with consumer credit programs for PV solar systems, Importers and system integrators for PV, and Local assemblers and manufacturers of solar modules and system components. SDG consists of two organizations: Solar Development Foundation (SDF) and Solar Development Capital (SDC). Solar Development Foundation SDF provides a full range of Business Development Services (BDS), including advisory services, grants and small loans for market assessments, business planning and pilot projects to help your company meet the qualifications for local and international investment. Obtaining SDG support STEP 1 Introductory letter If you would like to be considered by SDG for investment, you should write a short letter expressing interest. In the letter you should outline: The type of core business engaged in by the company; A summary financial presentation (balance sheet, income statement, etc.); Your company s five-year growth strategy, especially in PV; Your estimation of the local PV market potential and its present penetration; and The kind and level of finance needed to realize rapid company growth. STEP 2 Business plan information You may submit an existing business plan or simply provide information as requested by SDG staff. STEP 3 Business development services (optional) If it appears that SDG can help the company by funding market assessment and development activities to prepare for an investment by SDG or other investors, then a Business Development Services Plan (BDS Plan) can be developed with SDG and carried out with advisory services and co-funding provided through loans and grants. STEP 4 Investment Throughout the application and business development process, SDG staff will work with you to determine the possible financing scenarios and what needs to be done to prepare a business plan. The goal will be to determine whether or not equity finance looks like a good option. If it does, you can request consideration for investment by SDG. *At this time, SDG support is not available in all countries. Please contact SDG prior to developing an application to SDG to be sure that businesses in your country can be supported. CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 11
For companies that want to establish a credit sales capability, SDF can provide specialized Consumer Finance Operations Support services. Under this program, experienced rural credit practitioners can provide advice regarding the best approach for your company to arrange for customer credit. Solar Development Capital Businesses that have a suitable business plan and do not need external advice or assistance can apply directly to SDC and other financiers for investment. SDC provides investment capital (equity) and loans with terms negotiated on an individual basis. If SDC were invited to become an equity partner, SDC would consider purchasing a minority percentage of the business and would continue to provide advice and expertise as necessary to support the business. SDC would remain as an equity partner for a limited time, typically five to seven years, and then expect to be bought out by either the other equity holders or a new private partner. As an equity partner, SDC would also share fully in the risks and benefits of company operation according to its percentage of ownership of the company. To help you do a quick feasibility study of the PV business opportunity in your area, you can use the following checklists as a guide to locating needed information for your market area. Please note that completing these checklists is not a requirement for applying for SDC investment. Using the task checklist Annex The following checklists are intended to assist a business in organizing a preliminary assessment of the PV business environment by suggesting data to be gathered to help answer three important questions: Is there a market? Is there good reason to believe that the number of unelectrified rural households that want electrical services and have the resources to pay for off-grid power is large and concentrated enough to support the proposed business? What are the institutional relationships? How might the absence or the participation of governments, NGOs and international organizations in the market be to the benefit or disadvantage of the business? What are the possible sources of finance? How can you access the financial resources the company needs for developing consumer credit? Where can that financing come from? Each of the following checklists is dedicated to the task of answering one of these questions. While it may not be possible to check every box in the checklists, the more that can be checked, the better you should be able to understand the characteristics of your market. The checklists that follow are offered as a simplified guide for your use in making a rapid feasibility assessment for a PV business. Obtaining the information suggested in the checklists is not a specific requirement for obtaining SDG support. CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 12
ANNEX: General Market Assessment Checklist DATA TYPE TYPICAL SOURCES Purpose of data-gathering Population distribution and density (by smallest possible political unit, such as village or district) Income distribution (by smallest possible political unit) Income distribution by income type (agriculture, mining, fishing, industry, forestry, etc.) Statistics departments, prior socio-economic surveys Locate dense rural populations with the highest incomes, as these will be the easiest markets to develop, and determine the seasonality of income to understand how payment for systems is likely to be received Number of unelectrified homes (by smallest possible political unit), and areas currently or planned to be electrified by the national grid Rate of grid electrification (planned new connections per year) Connection and electricity service charges. Average monthly expenditures on lighting, radio, TV, and/or other light rural loads. Rural electrification authorities, energy departments, statistics departments, donor agencies, independent power producers, prior customer surveys, non-governmental organizations Locate the areas suitable for off-grid electrification and understand electrification patterns, the cost of competitive services and the existing cost to the household for services that can be provided by solar photovoltaics Monthly average solar resource across the target market area Meteorology offices, energy offices, international agencies, regional publications, solar suppliers Help establish the size and therefore cost of the systems needed for the desired levels of service. Types of adverse climate conditions (high average temperatures, high humidity, salty air, strong storms, etc.) Meteorology offices, energy offices, regional publications Determine special design requirements for PV systems that may affect the installation cost Transportation characteristics (road, bus, train, trail) Maps, transport departments, military, police, transport companies Determine the difficulty of providing service to rural users and therefore the after-market support cost Service access, especially broadcast television, satellite TV, mobile phone networks, and bottled (LPG) gas. TV companies, mobile phone companies, communications departments, energy departments, bottled gas companies Determine areas where PV can be used for operating TVs and mobile phones since that will increase market acceptance Annual volume of PV modules and/or cells imported into the country for the previous five years Commerce departments, customs offices Estimate the current total market size and recent market trends CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 13
Legal/Institutional Assessment Checklist DATA TYPE TYPICAL SOURCES Purpose of data-gathering Customs duties on PV system components Customs offices, PV equipment importers Help evaluate the cost advantage of local manufactured components instead of imports Tax requirements and special exemptions for the type of business to be developed, including taxes on corporate profits, interest, lease payments, capital gains, international transfers, etc. Tax authorities, trade promotion agencies Understand tax issues for financial planning and optimization of the business structure Regulations, laws and standards applicable to PV installations in rural areas Energy offices, standards agencies, public utilities Learn what is necessary to comply with applicable laws, standards and regulations Institutional framework for rural electrification, including existing concession schemes, incentives, and procedures for expansion of service areas Energy offices, rural electrification authorities, independent power producers, public utilities Ensure that the business will fit into the existing rural electrification environment Financial Resource Assessment Checklist DATA TYPE TYPICAL SOURCES Data on micro-credit and hire-purchase (leasing) institutions and their financing conditions, including: Loan terms (periods) Interest rates Securities/collateral required Geographic coverage (extent of rural branch network) Non-governmental organizations, banks, agriculture departments, banking regulatory agencies, general inquiries in rural areas Understand rural customer credit arrangements within existing micro-credit structures to determine if your PV business can take advantage of them Data on banks operating in rural areas or providing consumer finance, and their loan conditions (same as above) Same as above Understand rural customer credit arrangements through banks to see if they would be useful for your business Information on household credit provided through local cooperatives, and their loan conditions (same as above) Cooperative offices, agricultural departments, cooperative regulatory agencies, general inquiry in rural areas Understand agricultural cooperative time payment schemes that could be used to finance PV to see how they might benefit your business Determine incentives available through government and international agency programs in the country (UN, World Bank, GEF, bilateral donors such as Japan, France, Germany, USA, etc.) Energy offices, international agency offices within the country, energy offices, donor country embassies Learn the requirements for accessing subsidies and how to take advantage of opportunities for customer finance provided through governmental and international programs CONSUMER FINANCE OPERATIONS PLANNING HANDBOOK 14
CONSUMER FINANCE OPERATIONS SUPPORT This document is an introduction to consumer finance operations planning. It is the first in a series of advisory materials developed with funding from Solar Development Foundation. The advisory materials cover a range of topics related to solar photovoltaic (PV) operations such as: Market assessment Marketing strategy Institutional frameworks Human resources Operations management Financial projections Corporate financing Business planning Consumer credit management Solar Development Foundation makes every effort to present materials in an accurate and unbiased way. Neither Solar Development Foundation, Solar Development Capital, nor their contractors makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information in this document.
For more information on Solar Development Foundation or to approach a Solar Development Group investment officer, please visit www.solardevelopment.org or contact: FOR AFRICA AND ASIA: Solar Development Group Utrechtseweg 60 Postbus 55, 3700 AB Zeist The Netherlands Tel: +31 30 693 65 00 Fax: +31 30 693 65 66 E-mail: sdg@triodos.nl FOR LATIN AMERICA: Solar Development Group 1655 North Fort Myer Drive, Suite 520 Arlington, VA 22209 USA Tel: +1 703 522 5928 Fax: +1 703 522 6450 E-mail: sdcf@mindspring.com www.solardevelopment.org