SOLAR LAMP CHALLENGE; SIERRA LEONE
PROVEN INTERVENTION TO BE DISTRIBUTED
Learn more about the Solar Lamp Challenge and how these lamps create enormous benefits for developing world families.
DISTRIBUTION MODEL INNOVATION
The Azimuth Solar business model is based on a rent-to-own approach which separates solar lamps from the solar panel in order to reduce the purchasing price of the lamp to target customers living on less than 2 USD per day. This reduces the total cost of buying a lamp and reduces the initial down payment. Consumers then pay the outstanding principal balance by paying a small mark-up when charging their lamps at the solar panel charging station over a fixed number of charges. This allows consumers to gain full ownership over an estimated period of about 3 to 6 months, depending on the product. As the solar lamp itself is sold with a relatively low mark-up, the business generates profits through recharging the lamps and other devices.
10% of the retail price of the lamp is required as an initial down payment from the consumer. The remainder is then paid via 90 installments of SLL 500 (~0.11 USD). The setup provides incentives for both consumer and distributor to engage in a long-term interaction. While consumers have strong incentives to charge their lamps below market prices at the solar station, the distributor only earns a profit through selling electricity services.
Azimuth Solar will offer two high-quality solar lighting products to target different customer groups, each produced by Greenlight with a two-year warranty. The company will target specific groups (students and female street market vendors) to sell the products and customize its message to the local audience. To inform potential consumers about the positive effects of the productrs, Azimuth Solar will work with opinion leaders like principals and teachers. Employees will receive special training to conduct sales events as well as on-site support from the team.
PILOT AND SCALING GOALS
- Reach 800 customers within the pilot phase
- Create 5 jobs within the pilot phase
- Reach 1,400 customers at the end of year 1
- Create 24 jobs by the end of year 1
- Reach 10,000 customers by the end of year 2
- Create 50 jobs by the end of year 2
- Eric Silverman - Co-Founder and Chief Operations Officer
- Soonen Ahua - Co-founder
- Manuel Ludwig - Dehm - Co-founder