Raising the Demand for Solar              Narasimhan Santhanam,                     Director,              Energy Alternat...
Solar Power…• Smells and tastes no different from coal-  based/natural gas power• Is available no better than wind-based p...
IT COSTS FOUR TIMES AS MUCH AS COAL,     NATURAL GAS, WIND OR HYDRO                               www.eai.in
AND YETWE WANT EVERYONE TO USE IT!                          www.eai.in
Why?BECAUSE ITS POTENTIAL AS A FUTURERENEWABLE ENERGY SOURCE IS IMMENSE                              www.eai.in
But…   How does one create demand for a commodity that costs four times the price    at which it is available elsewhere?  ...
About EAI• Leading     Indian    renewable     energy    business  intelligence, market strategy consulting firm• All prim...
5 Ways to Increase the Demand for               Solar                             www.eai.in
Product      Place          Positioning                   Price                           www.eai.in
1  Let Go of Grid Solar PV Fixation“A man with only a hammer sees every problem as a nail” – Abraham Maslow               ...
Not Just Grid Connected, but alsoOff-grid – Industrial rooftops – Domestic rooftops – Small community micro-grid power pla...
Not Just PV, but also Thermal – CSP (solar thermal) has higher efficiency than PV   (21% vs. 17%) – CSP has higher chances...
Plethora of Solar Product Possibilities• Solar Cookers International has rated  India as the #1 country in the world in  t...
Plethora of Solar Product PossibilitiesConsumer Products               Commercial/Industrial ProductsSolar Water Heaters ...
2   Take Solar Where Really Needed“Stop selling. Start helping” - Zig Ziglar                                    www.eai.in
Take Solar to Unelectrified Villages   – Over 60,000 villages have no grid     power   – TERI’s Lighting a Billion Lives (...
Tale Solar to Areas with Long Power Cuts• India’s peak power shortages are expected  to worsen from:   – 17% peak deficit ...
3      Position Solar diFFeRently“I took a child’s scribbling and sold it as   abstract art” – Groucho Marx (att.)        ...
Position It against the Right Fuel           (“Diesel Substitute”)• Let solar PV be compared to diesel generated power;  E...
Position It as a Safer Fuel        (“Healthy”)• Over 80 million families in India use  kerosene as a fuel     • Results in...
Position It as the Anywhere Fuel             (“Freedom”)• Let it not be called solar electricity; let it  be seen as “powe...
Position It as a Corporate Statement          (“Responsibility”)– Companies keen on making green  statements out of both g...
4      Provide External Stimuli“Governments should act when markets           can’t” - Anon                               ...
Stimuli Using Incentives   • Incentives     – REC     – CER     – F-I-T     – CDM     – Net Metering     – Other Financial...
Stimuli through Regulations         • Mandates such as the RPOs/SPOs         • “Increase” the prices of substitutes       ...
5        Invent the Future"The best way to predict the future is to         invent it." - Alan Kay                        ...
Technology InnovationsAdapt Pure Tech Innovations Innovate on Indianized                            SolutionsCell efficien...
Financing Innovations• Microfinance  – SKS Microfinance, Indias largest MFI, offers solar    lamps to its 5 million custom...
Raising the Demand forSolar1. Let Go of Grid Solar PV Fixation2. Take Solar Where Really Needed3. Position Solar Different...
“The significant problems that we face today cannot be solved with the same     mentality that created them”           Alb...
Let There be Sun!      Narasimhan Santhanam,Director, Energy Alternatives Indianarsi@eai.in, Mob: +91-98413-48117         ...
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  • Notes:Keep texts to the minimumLots of graphsSome good graphicsAny other visualSlide transition – at bottom and topic separators
  • Narsi presentation iitm nov 2012

    1. 1. Raising the Demand for Solar Narasimhan Santhanam, Director, Energy Alternatives India www.eai.in
    2. 2. Solar Power…• Smells and tastes no different from coal- based/natural gas power• Is available no better than wind-based power• Is not a baseload source as hydro power www.eai.in
    3. 3. IT COSTS FOUR TIMES AS MUCH AS COAL, NATURAL GAS, WIND OR HYDRO www.eai.in
    4. 4. AND YETWE WANT EVERYONE TO USE IT! www.eai.in
    5. 5. Why?BECAUSE ITS POTENTIAL AS A FUTURERENEWABLE ENERGY SOURCE IS IMMENSE www.eai.in
    6. 6. But… How does one create demand for a commodity that costs four times the price at which it is available elsewhere? www.eai.in
    7. 7. About EAI• Leading Indian renewable energy business intelligence, market strategy consulting firm• All primary renewable energy sectors – solar, wind, bio-fuels/biomass, waste-to-energy, small hydro• Market research, entry and diversification strategy, economic, financial modeling and pre-feasibility analysis• Professionals from IITs and IIMs, with renewable energy, industry research and economics backgrounds• Based out of Chennai, India• More at www.eai.in www.eai.in
    8. 8. 5 Ways to Increase the Demand for Solar www.eai.in
    9. 9. Product Place Positioning Price www.eai.in
    10. 10. 1 Let Go of Grid Solar PV Fixation“A man with only a hammer sees every problem as a nail” – Abraham Maslow www.eai.in
    11. 11. Not Just Grid Connected, but alsoOff-grid – Industrial rooftops – Domestic rooftops – Small community micro-grid power plants for rural areas www.eai.in
    12. 12. Not Just PV, but also Thermal – CSP (solar thermal) has higher efficiency than PV (21% vs. 17%) – CSP has higher chances of becoming baseload compatible in future – Storing heat is less costly than storing electricity (using batteries could increase cost by over 75%) – Use of thermal for heating and drying purposes is efficient (less losses as no conversion) www.eai.in
    13. 13. Plethora of Solar Product Possibilities• Solar Cookers International has rated India as the #1 country in the world in terms of solar cooking potential; estimated potential demand of 10 million solar cookers in this country• India has less than 2 million solar water heaters. China has 25 million! www.eai.in
    14. 14. Plethora of Solar Product PossibilitiesConsumer Products Commercial/Industrial ProductsSolar Water Heaters Absorption ChillersHome Lighting, Street Light, BoilersOutdoor Lighting Solar Thermal DesalinationSolar Lanterns Solar Water PumpsSolar Power Packs Solar DryersSolar Submersible Pumps Solar based Electric FencesSolar Pool Covers Solar LED SignalsSolar Pool Heaters solar LED Road StudsSolar Cookers Exotica - Solar Panels on SoundSolar Fencing Barriers on RoadsSolar RadioSolar CandlesSolar Exhaust FansExotica - Solar Powered Bags www.eai.in
    15. 15. 2 Take Solar Where Really Needed“Stop selling. Start helping” - Zig Ziglar www.eai.in
    16. 16. Take Solar to Unelectrified Villages – Over 60,000 villages have no grid power – TERI’s Lighting a Billion Lives (LaBL) – SELCO’s success – Innovative processes - Hybrid of biomass and solar? – Innovative financial schemes www.eai.in
    17. 17. Tale Solar to Areas with Long Power Cuts• India’s peak power shortages are expected to worsen from: – 17% peak deficit in 2009 (23 GW gap), to – 25% peak deficit in 2015 (over 60 GW shortfall)• Power disruptions cost over Rs 25,000 crores per year www.eai.in
    18. 18. 3 Position Solar diFFeRently“I took a child’s scribbling and sold it as abstract art” – Groucho Marx (att.) www.eai.in
    19. 19. Position It against the Right Fuel (“Diesel Substitute”)• Let solar PV be compared to diesel generated power; Economics almost the same, perhaps even better with govt subsidies • Over 250,000 cell phone towers, consume about 2 billion litres of diesel per year. Move to solar will result in a reduction of 5 million tons of CO2 emissions and savings of US $1.4 billion in operating expenses. • Irrigation Pumps - Promote micro-irrigation – 21 million irrigation pumps in India – 9 million run on diesel • Areas like Andamans almost fully running on diesel power • Diesel prices will continue increasing while solar prices will continue decreasing www.eai.in
    20. 20. Position It as a Safer Fuel (“Healthy”)• Over 80 million families in India use kerosene as a fuel • Results in acute respiratory infections: influenza and pneumonia • 2.5 million people suffer severe burns each year primarily from upturned lamps • Solar/LED provides far better white light than kerosene lamps, resulting in less eye strain www.eai.in
    21. 21. Position It as the Anywhere Fuel (“Freedom”)• Let it not be called solar electricity; let it be seen as “powering you anywhere” – You cannot take the grid with you while on a mountain hike – Mobile applications – phones, camping and related travel – Using it where it is application specific – local refrigeration for preserving milk www.eai.in
    22. 22. Position It as a Corporate Statement (“Responsibility”)– Companies keen on making green statements out of both genuine concern and for branding • Infosys has a CSR budget of Rs 20 Crores– Facilitate such adoption by providing customized solutions and benefits • Awards and recognition www.eai.in
    23. 23. 4 Provide External Stimuli“Governments should act when markets can’t” - Anon www.eai.in
    24. 24. Stimuli Using Incentives • Incentives – REC – CER – F-I-T – CDM – Net Metering – Other Financial Incentives www.eai.in
    25. 25. Stimuli through Regulations • Mandates such as the RPOs/SPOs • “Increase” the prices of substitutes • Carbon tax • Reduce subsidies for fossil fuels and provide it for solar# of households using kerosene 7.6 croresTotal kerosene used per year 3.6 billion litersSavings to govt from subsidy avoidance Rs 1200per household per yearCost of a solar PV solution per BPL Rs 20,000 / Approx Rs 1300household / cost per year with 15 yearslifetime www.eai.in
    26. 26. 5 Invent the Future"The best way to predict the future is to invent it." - Alan Kay www.eai.in
    27. 27. Technology InnovationsAdapt Pure Tech Innovations Innovate on Indianized SolutionsCell efficiency increases India-specific applicationsStorage breakthroughs India-specific productsThin film innovations India-specific adoption www.eai.in
    28. 28. Financing Innovations• Microfinance – SKS Microfinance, Indias largest MFI, offers solar lamps to its 5 million customers – SELCO works with many microfinance institutions• “Softer” Loans – Already available for a range of consumer solar products (at interest rates 5% and below) – Capital subsidies available along with soft loans• Public-private Partnerships www.eai.in
    29. 29. Raising the Demand forSolar1. Let Go of Grid Solar PV Fixation2. Take Solar Where Really Needed3. Position Solar Differently4. Provide External Stimuli5. Invent the Future www.eai.in
    30. 30. “The significant problems that we face today cannot be solved with the same mentality that created them” Albert Einstein www.eai.in
    31. 31. Let There be Sun! Narasimhan Santhanam,Director, Energy Alternatives Indianarsi@eai.in, Mob: +91-98413-48117 www.eai.in www.eai.in

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