Pricing Quality: Cost Drivers and Value-add in the Off-grid Solar Sector
Over the past 10 years, a large network of off-grid solar (OGS) product manufacturers and distributors have been tackling the electrification challenge in Sub-Saharan Africa. Whilst policymakers increasingly recognise and endorse quality standards for those products, there are concerns that consumer prices for quality products are too high. Often, a simple comparison is made between non-quality verified products that are sold on a cash basis and quality products that come with consumer financing and after-sales service.
Building on Hystra’s experience working on solar for the past 10 years and GOGLA knowledge of their members, complemented with 15+ interviews of OGS players and experts, this report presents the main cost drivers in the provision of quality products and services (including both upstream in product manufacturing, and downstream in product sales and added services) and the levers policymakers and industry players can use to narrow the price gap with non-quality products.
Photo credit: Renewit