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Solar lantern   technology adoption model for indian villages - final

Solar lantern technology adoption model for indian villages - final



Solar power based lamps for providing electricity for Indian Villages.

Solar power based lamps for providing electricity for Indian Villages.

Technology adoption Model based on T.O.P Analysis

Done by Ashok Bhatla



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  • Valesca
  • Valesca
  • Valesca
  • Valesca
  • Valesca
  • Valesca
  • Valesca
  • Valesca
  • Valesca
  • Parisa
  • Parisa
  • Dilek
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Solar lantern   technology adoption model for indian villages - final Solar lantern technology adoption model for indian villages - final Presentation Transcript

  • Solar Lanterns for Indian Villages - Technology Adoption Model
    • Course : ETM 510
    • Professor: Dr. Tugrul Daim
    • Term : Spring 2011
    • Students:
    • Parisa
    • Valesca
    • Ashok
    • Elvan
    • Dilek
  • Agenda
    • Problem Statement
    • Country Facts and Current Energy Scenario
    • Product Details and its benefits
    • Market Drivers and Barriers to Adoption – TOP Model
    • Typical Village Scenario
    • Models of Solar Lantern and Economic Analysis
    • Framework for Adoption – Major Players
    • Promotion, Financing and Distribution
    • Adoption Curve
    • Class Discussion
  • Problem Statement
    • Energy supply in Indians Villages is very scarce.
    • Around 78 million rural households do NOT have electricity.
  • India - Facts
    • Population – 1.2 billion
    • Among the top 10 economies of the world.
    • Population in Villages – 70 %
    • Villages without electricity
    • Average Sunny Days – 300/year
  • Current Energy Scenario
  • Solar Lantern – Solution for Villages Wall Street Journal Report http://www.youtube.com/watch?v=gd5UIuq3aoQ
  • Product Benefits Women can do household stuff in night Men can keep their shop open late in night Kids can study in night and work on homework Source : http://www.physorg.com/news175501636.html
  • Market Drivers for Adoption
  • Barriers to Adoption
  • Kiran S 10 Features
    • Provides up to 8 hours of light on a full battery and uses highly efficient LEDs.
    • It is four times brighter than a kerosene lantern and
    • Provides 360-degree illumination.
    • It can be used for a variety of activities like studying, cooking, or walking.
  • Nova S 50 - Features
    • Provides up to 12 hours of light
    • 8-10 times brighter than kerosene lamp
    • Multiple Brightness Setting
    • Smart Battery Indicator
    • Includes Mobile Phone Charger
  • Typical Village Scenario
    • Studied a village named Pradar in state of Orissa. Main Profession is agriculture. It’s one of the poorest village in Country
    • Income level Rs 625 per month
    • Average Distance to nearest Kerosene market is 5 km.
    • Average consumption of kerosene is 12 liters /month (includes cooking)
    • Subsidized Price Rs. 10 – allowed purchase is max 5 liters/month and 1 liter/day
    • Black Market Price varies from Rs. 15-30
    • Expected total benefit of Solar Lantern = Rs. 300
    • (http://www.beyondsolar.org/downloads/summary.pdf )
  • Economic Analysis Parameter   Basic Solar Lantern Solar Lantern with Cell Phone Charger Product Kerosene Lantern Kiran S10 Nova S250 Price of Lantern n/a 485 1495 Monthly Expenses for consummable ( 4 litre kerosene at Rs 22/Litre ) 88 0 0 Govt Subsidy @ 10% 0 49 150 Upfront investment = P n/a 437 1346 Interest per month = i n/a 1% 1% No. of months(Payments) = N n/a 12 12 Monthly Investment = A n/a 40 120
  • Results of Analysis
    • Goal : After one year, villagers can
    • own the lantern free and clear.
    • They can replace two lanterns – one for home and one for shop (some villagers own a small business)
    • Kiran S10 is for Home and Nova S250 is for shop
    Monthly kerosene cost for two lamps = Rs. 176 Monthly payments for two solar lamps = Rs. 160
  • Assumptions
    • Costs in Indian Rupees. 1 US Dollar = Rs. 45 (http://www.xe.com)
    • Average Price of kerosene is based on subsidized price and black market price
    • Villagers own the kerosene lantern and it has no resale value.
    • Formula for calculations of monthly payments
    • P = A (P/A, i%, N)
    • ( Source : Engineering Economic Analysis, Sullivan and Koelling, 2008)
  • Our Innovative Model for Adoption
    • Innovation in adoption, distribution and marketing of Solar Lanterns.
    • Use of Local Post Offices for sale, servicing and financing of the product.
    • Product Manufacturers to tie up with Govt and Post offices for Subsidies
    • and Distribution.
    • Post Offices are Govt controlled and trusted by villagers.
  • Framework for Adoption
  • Adoption Curve 16 % NGO and Village Leaders to Promote Product GOVT. Subsidy Program and Finance from Micro Lenders like Post Offices Post Offices as Retail and Distribution Centers Demand and Supply get balanced, Prices Stabilize Awareness Trial Mass Adoption Saturation Time Adoption Rate
  • Promotion & Awareness
    • NGOs to create the awareness
    • thru demonstrations in Farmers Market and Village Fairs.
    • Village Leaders to promote at the product at local community meetings.
    • Demo Products available at Local Post Offices and Schools.
    • Manufacturers can use SMS Texting
    • to advertise the product.
  • Financing – Micro Lending
    • Govt. to offer 10 % subsidy
    • to villagers on the purchase of
    • solar lanterns.
    • Subsidy can be used for up to 3 lanterns per family.
    • Post Office to give the loan for purchasing the lantern at nominal interest rates without any fees.
    Muhammad Yunus – Founder of Grameen Bank and Nobel Prize Winner for starting concepts of Micro lending
  • Sales and Servicing
    • Post Offices to distribute the lanterns
    • Big villages of more than 50,000
    • population can have a Company Rep
    • permanently located at the Post Office.
    • Post Offices will serve as a Distribution and Shipping center for new Lanterns
    • Defective Lanterns can be returned at the Post office for repairs by the manufacturer. Villagers not to pay any shipping
  • Summary of Benefits Education Improvement Less Pollution leading to Health Improvement Safer Product leading to less no. of accidents Improvement in Productivity leading to more income
  • Class Discussion