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Three packages of installation and services for reliable electricity over a long time. | Solar Community Systems (SCS) can be for either public or private purposes. Public purpose systems include, for instance, lighting for schoolrooms, healthposts, etc. They must be funded through public mechanisms of the community. Private purpose systems involve various persons sharing a system for their own private benefit, such as a farmers group using solar pumps for a drip-irrigation system or a processing group operating a sterilizer or cooler. The groups finance such systems collectively. Sunlabob has several years of experience in installing Solar Community Systems. Over the years, we have found that financial arrangements often have just as much influence as the technical aspects on whether a community system can have a sustained impact after 3 years and can operate for the full life-expectancy of the equipment. Through such arrangements, communities can easier pay replacement investments for components. Furthermore, through its network of trained and franchised service providers, Sunlabob is in a position to ensure backup and good servicing, so the life-expectancy of equipment improves, even in remote areas. |
Based on these experiences and considerations, Sunlabob presently offers the three following arrangements for Solar Community Systems: (The same arrangements can also be made with adaptations to wind-systems, hydro-systems, and hybrid -systems). Contact Sunlabob if you are interested in any of these packages. | SALE | Sunlabob installs the system and the community pays the full price for the equipment and installation. Through a service agreement with the community, Sunlabob will maintain the system and replace components as needed.
- Ownership of the system: Is with the community.
- Funding: Ideally, the community pays Sunlabob. However, sometimes a donor agency or program pays Sunlabob and presents the system to the community. The village organizes the follow-up funding.
- Contractual arrangements: Installation and service contract.
- Advantages: Standard procedure that Sunlabob often engages in. Service contract ensures proper maintenance and longevity of the equipment.
- Disadvantages: Follow-up costs are rare, but large. For several years, the system is experienced as “free,” when actually major expenditures are looming after the batteries break down. Suddenly then the community has to organize funds in an emergency. Given the lack of an efficient financial sector in rural areas, savings for such events are not possible. Very often, the SCS then lays idle, even though the panels are perfectly in order.
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| RENT | Sunlabob installs the SCS and rents it to the community at a fixed monthly rent that covers all costs: Equipment, payment, capital costs, servicing, etc…
- Ownership of the system: Remains with Sunlabob
- Funding: From the rental fund operated by Sunlabob. The money in the fund comes from various investors, as either credit or equity. The rents flow back into the rental fund.
- Contractual arrangements: Rental contract.
Advantages: No large initial costs for the community. Regular monthly fee that the community can plan for. Electricity is available already after the first fee. When the system does not operate, the community does not pay the fee. Sunlabob therefore has a vested interest in keeping the system operational at top reliability. This also allows us to install equipment that is more expensive because it is more reliable and leads to lower rental fees. The community can easily drop out by simply stopping the rental agreement. For instance, when the grid arrives in the village or other options become possible. The community can also easily change the size of the system they want to rent. - Disadvantages: High rental fees for covering all costs.
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| MANAGEMENT | A mix between the two above options in order to combine advantages and avoid disadvantages: Sunlabob installs the system and is paid the full cost-covering price for the equipment and installation. In a management contract, the system is then given to Sunlabob to maintain in good order. For this Sunlabob charges a fixed fee per month that covers payment and servicing. With this fee, Sunlabob will do the repairs and replacements of components once their life-cycle is over, thereby keeping the system reliable and operating for an indeterminate time. This fee of course is lower than the rental fee, because the equipment and installation have already been paid for, and capital costs do not appear.
- Ownership: Is with the community. A management-contract hands over management to Sunlabob. This arrangement can be terminated, with refund of non-used payments back to the community.
- Funding: Ideally, the community pays Sunlabob for the initial equipment and installation. However, sometimes a donor agency or program will provide the funds to the community for paying Sunlabob. The regular fees after installation flow into the rental fund of Sunlabob.
- Contractual arrangements: Installation contract, management-contract
- Advantages: The follow-up for reliable and sustained operation of the system is ensured. All advantages of a rent, but at a lower fee, except lower flexibility.
- Disadvantages: Lower flexibility for the community.When the community wants to change arrangements, it is left with a system in its ownership that it must try to sell, etc…
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Energy Programmes 
