YYU /cCYto

INSTITUTIONEN FOR VARME- OCH KRAFTTEKNIK

ENERGIHUSHALLNING

TEKNISKA HOGSKOLANI LUND

Solar Home Systems in Nepal

Jessica Henryson Teresa Hakansson

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ISSN 0282-1990ISRN LUTMDN/TMVK-5310—SE

DEPARTMENT OF HEAT AND POWER ENGINEERING LUND INSTITUTE OF TECHNOLOGY P.O. BOX 118, SE-221 00 LUND SWEDEN

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Jessica Henryson Teresa Hakansson

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Solar Home Systems in Nepal

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Photovoltaic (PV) technology is a clean and environmentally friendly technology that does not require any fuels. The high reliability of operation and little need for maintenance makes it ideally suited for rural areas. Today PV systems are used in Nepal to power telecommunications centres, navigational aids, in pumping systems for irrigation and drinking water, and for household electrification. A solar home system consists of a PV module, a battery, a charge controller and 3-4 fluorescent light bulbs with fixture. The system provides power for lighting and operation of household appliances for several hours.

The success of donor supported programs have shown that solar home systems can be a practical solution for many rural households. In 1996 His Majesty's Government of Nepal launched a subsidy program for solar home systems, which dramatically has increased the demand for solar home systems among rural customers. This report includes a survey of 52 households with solar home systems in two villages. The freldstudy shows that the villagers are very happy with their systems and the technical performance of the systems in both villages is satisfactory. The study also shows the positive impact electricity has on education, health, income generation and quality of life. The beneficiaries of introducing electricity in remote areas are the children and the women.

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Preface

This report is the Master’s Thesis of Jessica Henryson and Teresa Hakansson. It was made from September 1998 to March 1999 and it was mainly carried out in Nepal. Our interest for renewable energy technologies and developing countries gave us the idea for the topic of this report. The writing of this report has been an amazing and incredible experience, which suc­ceeded thanks to a lot of people.

We would first of all like to thank ICIMOD (International Centre for Integrated Mountain Development) for their support and our advisers Dr. Kamal Rijal of ICIMOD and Professor Lennart Thornqvist of Lund Institute of Technology.

We would also like to express our appreciation and gratitude to all the others who have con­tributed in different ways towards the completion of this report. Maria Nystrom of LCHS for giving us the initial contacts with Nepal, Mr Yug R. Tamrakar of the Solar Electricity Com­pany, Mr. Bimal Ghimire of Lotus Energy, Mr. Babheshor Gurung of Pulimarang, Mr. Lax- man Adhikari of Rampur and Rajkumar Giri.

Without the financial support from ELFORSK and the sponsoring with laptops from SEMCON this report would have been very difficult to accomplish.

Finally we would like to thank our greatest supporters, Jorgen and Goran.

I

Abstract

Energy is essential for all development. Although lack of energy in itself does not cause pov­erty there is a close relationship between the lack of energy services and poverty. The intro­duction of modern energy forms such as electricity has great impacts on rural life in terms of social and economic development. The total electricity production in Nepal is less than 300MW and is mainly from hydropower production. Only 4% of the rural population have access to grid-based electricity and because of the high costs involved in extending the grid it is likely that many rural areas will stay un-electrified. The option for rural areas is instead small-scale decentralised energy systems. This includes micro hydropower, diesel generators and decentralised photovoltaiv systems. This report is focused on ‘stand-alone’ solar home systems for household electrification.

Photovoltaic technology is a clean and environmentally friendly technology that does not re­quire any fuels. The high reliability of operation and little need for maintenance makes it ide­ally suited for rural areas. Today photovoltaic systems are used to power telecommunications centres and navigational aids, in pumping systems for irrigation and drinking water, and for household electrification. A solar home system consists of a PV module, a battery, a charge controller and 3-4 fluorescent light bulbs with fixture. The system provides power for lighting and operation of household appliances for several hours per day.

The success of donor supported programs have shown that solar home systems can be a prac­tical solution for many rural households. In 1996 His Majesty’s Government of Nepal launched a subsidy program for solar home systems, which dramatically has increased the demand for solar home systems among rural customers. This report includes a survey of 52 households with solar home systems in two villages. Of the surveyed solar home systems 20 are implemented through a donor supported program in Pulimarang of Tanahu district and the rest are either purchased privately or through the subsidy program in Rampur of Palpa district. The fieldstudy shows that the villagers are very happy with their systems and the technical performance of the systems in both villages is satisfactory. The study also shows the positive impact electricity has on education, health, income generation and quality of life. The benefi­ciaries of introducing electricity in remote areas are the children and the women.

So far it is mainly the richer part of the population that can afford the high investment cost of a solar home system. The system cost as well as the costs for maintenance and service can be expected to fall once the solar market matures, but in order for the market to grow solar home systems must be made affordable to a larger part of the population. The main barrier against affordability is the high investment cost of the solar home system compared to it life cycle cost. However, with innovative financing mechanisms along with appropriate institutional infrastructure a larger part of the rural poor can be reached.

II

Abbreviations and acronyms

ADB/N Agricultural Development Bank of NepalAEPC Alternative Energy Promotion CentreCRE Centre for Renewable EnergyESCO Energy Service CompanyFY Fiscal YearICS Improved Cooking StoveINGO International Non-Governmental OrganisationLE Lotus EnergyNEA Nepal Electricity AuthorityNGO Non-Governmental OrganisationNPC National Planning ComissionNRs Nepali RupeesNSES Nepal Solar Energy SocietyPV PhotovoltaicRET Renewable Energy TechnologySEC Solar Electricity CompanySELF Solar Electric Light FundSHS Solar Home SystemSPY Solar PhotovoltaicsUNDP United Nations Development ProgrammeUNESCO United Nations Educational, Scientific and Cultural OrganisationUSD United States DollarsVDC Village Development CommitteeWLG Wisdom Light GroupWp Watt peak

Currency exchange rate:

USD 100 = NRs 6800 (October 1998)

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Table of Contents

Preface................................................................................................................... I

Abstract..................................................................................................................II

Abbreviations and acronyms...............................................................................Ill

1. Introduction...................................................................................1

1.1. Objective................................................................................................. 11.2. Approach.................................................................................................11.3. Structure.................................................................................................2

2. The energy situation in Nepal..................................................... 3

2.1. An overview of the energy situation in Nepal........................................32.1.1. Commercial energy.......................................................................... 42.1.2. Biomass............................................................................................ 4

2.2. Environmental issues.............................................................................. 52.2.1. Fuelwood collection and deforestation.............................................62.2.2. The viscous circle.............................................................................6

2.3. Renewable energy technologies............................................................ 72.3.1. Biomassed.based technologies.........................................................82.3.2. Mini- and micro-hydro power..........................................................92.3.3. Wind power..................................................................................... 92.3.4. Solar Energy.....................................................................................102.3.5. Solar photovoltaic technology..........................................................102.3.6. PV technology and environment......................................................10

3. Energy and gender issues.............................................................12

3.1. Nepalese women and their status......................................................... 123.1.1. Women and health........................................................................... 133.1.2. Women and literacy......................................................................... 13

3.2. Women and environment and natural resource management...........14

3.3. The role of renweable energy technologies.......................................... 143.3.1. Benefits of PV technology................................................................15

4. Solar Electricity in Nepal............................................................16

4.1. Applications............................................................................................. 164.1.1. Professional systems........................................................................164.1.2. Water pumping systems.................................................................. 164.1.3. Household electrification..................................................................17

4.2. Solar home systems............................................................................... 174.2.1. History of implementation................................................................. 174.2.2. Soalr home systems installation to date............................................ 18

4.3. The government subsidy program..........................................................194.3.1. Subsidy and loan procedure...............................................................19

4.4. Implementation..................................................................................... 204.4.1. Solar home system components........................................................ 214.4.2. Costs and warranties..........................................................................224.4.3. Maintenance and repairs....................................................................234.4.4. Manufacturers....................................................................................234.4.5. Governmental organisations and NGOs.............................................24

4.5. The place for solar home systems......................................................... 254.5.1. Economic comparison....................................................................... 264.5.2. Comments to economic comparison................................................. 28

5. Fieldstudy......................................................................................................30

5.1. Introduction........................................................................................... 305.1.1. Objective............................................................................................305.1.2. Choice of sites................................................................................... 305.1.3. Methodology......................................................................................305.1.4. Structure............................................................................................ 31

5.2. Pulimarang............................................................................................ 315.2.1. Location of Pulimarang..................................................................... 315.2.2. Energy availability.............................................................................315.2.3. The Pulimarang SPY home system project....................................... 32

5.2.3.1 Financial scheme....................................................................... 335.2.3.2 The work of Dr Petra Schweizer-Ries.......................................33

5.3. Results of fieldstudy - Pulimarang.........................................................345.3.1. Presentation of the interviewees........................................................345.3.2. The systems....................................................................................... 345.3.3. Technical results................................................................................35

5.3.3.1 Technical Performance..............................................................355.3.3.2 Maintenance............................................................................ 365.3.3.3 Service and repairs.................................................................... 36

5.3.4. Replacement of battery......................................................................375.3.5. Knowledge about costs and warranties........................................... 375.3.6. SHS effect on the use of kerosen and dry-cell batteries................... 385.3.7. Socio-economic results................................................................... 38

5.3.7.1 Reasons for purchase.................................................................3853.1.2 Impacts of solar home systems................................................. 3953.1.3 Income generating activities..................................................... 415.3.7.4 Study of three households without solar................................... 415.3.7.5 The impact of electricity on women’s lives............................ 41

5.4. Rampur..................................................................................................... 425.4.1. Location and description of the village........................................... 425.4.2. Energy availability.......................................................................... 42

5.5. Results of fieldstudy - Rampur........................................................... 435.5.1. Presentation of the interviewees..................................................... 435.5.2. The systems..................................................................................... 435.5.3. Financing of the system................................................................. 445.5.4. Technical results............................................................................. 44

5.5.4.1 Technical performance........................................................... 445.5.4.2 Maintenance............................................................................ 455.5.43 Service and repairs................................................................. 46

5.5.5. Knowledge about costs and warranties............................................. 475.5.6. Replacement of batteries................................................................... 485.5.7. SHS effect on the use of kerosene and dry-cell batteries............... 485.5.8. Socio-economic results................................................................... 48

5.3.8.1 Reasons for purchase................................................................ 4853.8.2 Impacts of solar home systems................................................. 495.3.83 Income generating activities......................................................51

5.6. Summary of field study........................................................................ 525.6.1. Summary of results in Pulimarang.................................................... 525.6.2. Summary of results in Rampur..........................................................53

5.7. Discussion of the results....................................................................... 555.7.1. Technical performance.................................................................... 555.7.2. Effect on the use of kerosene and dry-cell batteries........................ 565.7.3. Discussion of socio-economic results............................................. 575.7.4. Comparing with the survey of 1995 ................................................ 575.7.5. Effect on the use of kerosene and dry-cell batteries........................ 575.7.6. Socio-economic results..................................................................... 585.7.7. Comments to results.......................................................................... 61

6. Developing a sustainable solar market in Nepal............................ 62

6.1. Role of government.................................................................................. 626.1.1. Creating a level playing field............................................................ 636.1.2. Facilitating access to credit............................................................... 636.1.3. Planning and coordination.................................................................636.1.4. Supoorting local participation in electrification programs............. 646.1.5. Standardisation, warranties and insurance........................................ 646.1.6. Formulation subsidy policies.............................................................64

6.2. Role of donors, NGOs and the private sector......................................... 656.2.1. Role of donors................................................................................... 656.2.2. Role of NGOs....................................................................................656.2.3. Role of companies............................................................................. 65

6.3. Increasing affordability........................................................................... 666.3.1. Leasing arrangements........................................................................ 666.3.2. Financing through energy service companies.................................... 676.3.3. Consumer financing through commercial banks or dealers............. 686.3.4. Increasing credit availability............................................................ 686.3.5. Increasing access to collateral.......................................................... 68

7. Conclusions and recommendations.................................................... 70

7.1. Rural electrification alternatives............................................................707.2. The solar Home system niche................................................................ 707.3. Suceeding in implementation................................................................ 707.4. Conclusions of fieldstudy.......................................................................... 717.5. Recommendations for developing a solar market................................. 71

7.5.1. Governement..................................................................................... 727.5.2. Donors, NGOs and the private sector................................................72

Appendix A: Introduction to Nepal.....................................................................74A. 1 Geography........................................................................................................ 74

A.2 Population................................................................................................ 74A.3 History and politics.................................................................................. 74A.4 Health....................................................................................................... 75A. 5 Education.................................................................................................. 75

Appendix B: Solar photovoltaic technology.................................................... 76B. 1 The phoyovoltaic process............................................................................. 76

B. 2 Band Gap................................................................................................... 76B.3 The PV cell................................................................................................ 76B.4 The PV module..........................................................................................77B.5 Cell materials.............................................................................................77

B.5.1 Crytallin silicon................................................................................ 77B.5.2 Thin film technology........................................................................78

B.5.2.1 Amorphous silicon................................................................ 78B.5.2.2 Cadmium Telluride............................................................... 78B.5.2.3 Copper Indium Diselinide...................................................... 78

B.5.3 Multijunction cells.............................................................................78B.6 Research and development...................................................................... 79

B.6.1 Research and development.............................................................. 79B.7 Applications............................................................................................ 79

B.7.1 Market growth..................................................................................79

Appendix C: Basis and key assumptions for the economic analysis................ 81

Appendix D: Questionnaire...................................................................................83

Appendix E: Tables of data from fieldstudy................................................... 87

Appendix F: Women’s daily Schedule................................................................ 95

References 96

1 Introduction

Energy is essential to life. Energy is needed for heating, lighting, cooking, health, industrial production and transportation. The development of human society and civilisation has been shaped by energy and it is impossible to escape the fact that the use of energy is a necessary and vital component of development. Developing countries often face constraints to growth and development that are directly related to the unsustainability of current patterns of energy production and use. The demand for energy often exceeds the sustainable supply of local re­sources. New issues associated with the development of the energy sector are also emerging. These include environmental issues and problems of economics such as access to capital, empowerment (self-reliance) and social equity. People want the services that energy provides. They do not demand specific sources such as oil or coal. Therefore it is essential to focus on the demand side of the energy system. The demand side approach stresses the end users’ pref­erence for service, quality, affordability, accessibility, reliability, safety and impact on envi­ronment. When energy issues are viewed from the end use perspective, rather than from the traditional supply-side, the opportunities increase for improvements in energy efficiency, shifts to modern energy carriers and dissemination of renewable energy technologies. Renew­able energy sources are now reaching commercial viability due to technology improvements and decreasing prices and offer feasible and attractive alternatives to conventional energy sources.

The electricity supply in Nepal is limited to about 14% of the population. However, among the rural population, which constitutes 90% of the total, only 4% have access to grid-based electricity. Providing energy to remote areas of Nepal is associated with different problems such as the difficult topography, scattered population and poor infrastructure. Extending the central grid over long distances is expensive and difficult. Given the constraints of the high costs involved, the chance of rural electrification by main grid is limited. The problem with providing energy to rural areas implies that small-scale decentralised energy systems would be a better option for rural electrification in Nepal. One alternative is decentralised solar photovoltaic (PV) systems. The electricity generated in a stand-alone solar home system is sufficient for providing households with lighting and power for small electric appliances. In­troduction of electricity in remote villages may have a big impact on social and economic development in terms of health, literacy, education, income generation and quality of life.

1.1 Objective

The objective of this report was to assess the impacts and effectiveness of solar home system installations in selected rural areas of Nepal, with regards to technical performance and socio­economic development. The objective also included identifying the niche for solar home sys­tems as well as assessing the potential and possibilities for future implementation.

1.2 Approach

This study was mainly carried out in Nepal during the autumn of 1998. To be able to assess the actual performance and impacts of solar home systems, we conducted a fieldstudy in two villages during one month. A total of 55 households were surveyed in Pulimarang of Tanahu

l

district and Rampur of Palpa district. Prior to this, we spent two months in Kathmandu, gath­ering necessary background material. This included literature studies and meetings with manufacturers of PV systems, financiers, non-governmental organisations and others involved in the energy sector. We also attended an international conference on the role of renewable energy technologies for rural development. After the fieldstudy, we returned for one month to Kathmandu for supplementary discussions and to summarise our findings.

1.3 Structure

The following two chapters gives the reader an introduction to the energy situation in Nepal and the issues involved in the development of the energy sector, as well as energy related gender issues. After the general introduction, chapter 4 describes the status of solar electricity and solar home systems in Nepal. The material from the fieldstudy is presented in chapter 5:5.1 through 5.5 gives a detailed description of the results, while a summary is given in 5.6 and a discussion of the results in 5.7. In chapter 6 an attempt is made to identify the key issues of the development of a sustainable solar market. Chapter 6 is not based on actual experiences and whether the issues raised will in fact lead to the development of a sustainable market is open to discussion. However, after literature studies and discussions with involved energy- sector stakeholders in Nepal, this chapter reflects our impressions of development prerequi­sites. The report ends with conclusions and recommendations. A general introduction to the kingdom of Nepal is given in Appendix A. A brief description of the photovoltaic technology and market development is given in Appendix B.

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2 The energy situation in Nepal

2.1 An overview of the energy situation in Nepal

The energy resource base of Nepal consists of a combination of traditional and commercial sources. Traditional energy sources include fuelwood and other biomass, such as agricultural and animal residue. Commercial energy includes petroleum fuels, coal and hydropower based electricity. The major part of the energy is consumed in the domestic sector and it accounts for 91 % of the total consumption. The largest single energy source is fuelwood. Fuelwood is used for cooking and space heating. It accounts for 81% of the energy consumption and it is mainly consumed in rural Nepal (Rijal, 1998). Nepal’s per capita annual energy consumption is 0.3 toe (ton oil equivalent), which is one of the lowest in the developing world. The con­sumption of commercial energy is also very low, 30 kg oil equivalent, but the increase in con­sumption is high (Rijal, 1998). The per capita final energy consumption pattern is shown in table 2.1, and the energy consumption pattern in rural and urban residential sectors is shown in table 2.2.

Table 2.1. Per capita final energy consumption pattern in Nepal, FY 1994/1995 (Based on Rijal, 1998).

Descriptions kWh/Capita PercentBy sectorDomestic 3200 91Commercial 47.8 1Industrial 170 5Agriculture 27.8 <1Transport 90.8 3Total 3536 100

By fuel typeFuelwood 2873 82Other biomass 360 10Coal 36.6 1Pet. Fuels 230 6Natural gas 0 0Electricity 36.1 1Total 3536 100

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Table 2.2. Final energy consumption pattern in the rural and urban residential sectors of Nepal (Rijal, 1996).

Type of fuel Rural areas Rural areas Urban areas Urban areaskWh/Capita Percent kWh/Capita Percent

Fuelwood 2970 71% 2167 82%Agriculture residue 721 17% 72.2 3%Animal dung 381 9% 150 6%Total traditional 4071 97% 2389 91%

Kerosene 80.6 2% 135 5%LPG 0 0% 34.2 1%Electricity 6.94 0% 81.1 3%Coal/coke 0 0% 2.78 0%Total commercial 87.5 2% 253 10%

Total 4159 100% 2642 100%

2.1.1 Commercial energy

The commercial energy constitutes about 8% of the total energy consumption in Nepal, of which petroleum fuels share about 6% coal 1% and electricity 1%. Of the petroleum fuels diesel and gasoline is mainly used in the transport sector, kerosene is used for lighting in the absence of electricity and LPG (liquid petroleum gas) is mainly used for cooking in urban areas. All petroleum fuels and coal are imported and Nepal has no production or any proven reserves of oil, coal or natural gas.

The total electricity installed capacity is less than 300 MW (WECS, 1995a) and supplies about one percent of the total energy requirements (Rijal, 1998). Most of which is from hydro power and about 50 MW from diesel generators (WECS, 1995a). The hydropower installed capacity today is only 250 MW, but the theoretical potential is 83,000 MW, of which 42,000 MW is established as technically feasible (Rijal, 1998). The electricity supply is limited to about 14% of the total population. The rural population, which is about 90% of the total, has very limited access to electricity, approximately 4% (Rijal, 1998). The extension of the na­tional electricity grid is shown in figure 2.1. The overall consumption of commercial energy is very low, but the increase in consumption has been high, about 8.4% per annum (Rijal, 1998).

2.1.2 Biomass

Biomass as an energy source constitutes about 97% of total energy consumption in rural ar­eas, of which fuelwood share about 71%, agricultural residue 17%, and animal dung 9% as shown in table 2.2. The main source of fuelwood is the natural forest and farmland. At present the consumption of fuelwood exceeds the sustainable supply. The consumption of fuelwood varies considerably by ecological and development regions. Fuelwood is the largest energy source in the residential sector and it is used for cooking and space heating. Fuelwood is also the dominant energy source in small-scale industries. Medium- and large-scale industries such as baking, brewing and brick making, also utilise fuelwood as a source of energy (WECS, 1995).

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Figure 2.1. The national electricity grid (Based on NEA, 1998).

The supply of agricultural residues is dependent upon crop production. Such residues suitable as an energy source is also used as fodder for animals and industrial uses (WECS, 1995). Ag­ricultural residue is mainly used as a source of energy where the supply of fuelwood is getting scarce. The residue is used in the households for cooking and space heating and for heating in industries. The residue would be able to meet some of the energy demand, but it is also needed as fertiliser and to balance soil conditions.

Animal dung is the third major source of energy in rural areas. Dung is rarely used in areas where wood is readily available. If it is burnt, it is likely to be an indication that there is wood supply shortage. Dung is used for cooking and space heating and mainly used in the winter when other sources become scarce. The dung is collected, dried and made into cakes, each weighing about 3-4 kg (WECS, 1995a). The dung cakes are preferred to brushwood as a win­ter fuel, because it burns slower (WECS, 1995a).

2.2 Environmental issues

Almost all energy use leads to various adverse impacts on the environment. In urban areas the increasing use of fossil fuels is leading to severe pollution problems. In the capital where over 60 % of the total fossil fuel import is used in the transport sector alone, this problem is espe­cially acute (Sharma, 1995). In rural areas, the heavy dependence on traditional fuels has critical impacts on the fragile environment of the Himalayas and its surroundings.

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Since the Second World War, the population of Nepal has been growing rapidly, which has lead to more and more of the available land being cultivated. Gradually the forests have been encroached upon for cultivation, and the result has been a decrease in forestland from 60 % of the total land area in 1950, to 50 % in 1970 and to below 40 % in 1990 (Sharma, 1995). The increasing population also means a growing demand for fodder and grazing land for the like­wise increasing population of livestock, a growing demand for timber and a growing demand for energy, to a great extent to be met by the forest. This has lead to a consequent over- exploitation of the forests, especially those near human settlements. In Nepal, where the vast majority of the rural population have little or no access to sources of income and gainful em­ployment outside the agricultural sector, a deteriorating environment leads to increasing pov­erty. The natural resources (forest, soil, water, plants and animal life), on which they depend on for their continued survival, are being lost at an alarming rate (ICIMOD, 1995).

2.2.1 Fuelwood collection and deforestation

The impact of fuelwood collection on deforestation is a much disputed question. One reason for this is that the biological processes involved are very complex. Another reason is the fact that accurate and reliable figures on both the size of the fuelwood resource base and the fuel- wood demand are difficult to estimate. Nepal has an estimated area of 9.2 million hectares (1992/93) of potentially productive forest, shrub and grasslands. However, due to difficult terrain and poor infrastructure, only about one third is considered accessible for fuelwood collection (WECS, 1995c). In 94/95 the sustainable supply from accessible areas was esti­mated to be less than half of the demand (5.5 versus 11.5 million metric tons) (Rijal, 1997). However, the fuelwood demand as well as the sustainable supply varies considerably over ecological and development regions. Reasons for this include accessibility to forests, tradition and culture, and climatic factors. There is a surplus in some of the western districts, while the deficit is largest in the Terai (plains) and central hills. When the human population, as well as the livestock population continues to grow, the pressures on the forests will intensify. Consid­ering these factors it can be concluded that the dependence on the forests for energy-needs is not viable (WECS, 1995b).

2.2.2 The viscous circle

If the depletion of the forest is allowed to continue, it will in the long-term lead to a variety of serious environmental problems, some of which are already visible.

The effects of deforestation are very complex, but in short, the direct effect is soil erosion and the indirect effect is an increase of landslides (Hills, 1990). This in turn increases the inci­dence of floods, which can cause sedimentation of agricultural land (WECS, 1995b). In Ne­pal, this is further accentuated by the often steep topography in combination with heavy mon­soon rains All these factors lead to a decrease in the fertility of the land, which is the entry into a viscous circle. Decreased productivity of agricultural land forces the farmers to culti­vate new land, often on steeper and more marginal slopes.

When forests are encroached upon for the cultivation of new land, the fuelwood resource base is further diminished, forcing the population to find alternative energy sources. Agricultural residue and animal dung are cheap and easily accessible alternatives to fuelwood and, when used to a limited extent, also environmentally sound. However, the burning of agricultural residue diverts it from being used as fertiliser, either through ploughing in or burning in the field. Burning of animal dung further reduces the nutrient content of farmlands. In areas

6

where fuelwood is getting scarce, the use of agricultural residue and animal dung for fuel pur­poses is increasing. In the long run this leads to soils becoming less fertile due to lack of natu­ral fertilisers, and again a viscous circle is entered when more land is needed to produce the same amount of food.

In order to improve the situation, various measures need to be taken. With appropriate forest- management practices, the sustainable supply of fuelwood could increase a great deal and the possibilities of meeting the demand would increase. In areas where Community Forestry User’s Groups are active the improvements are visible.

It is also of major importance that the dependence on the forests, both for energy-purposes and source of income, is reduced. In order to reduce the dependence on the forests for fuel- wood, alternative energy sources must be made available. It is also important that new tech­nologies that improve the efficiency of the fuels used are made available. One example of this is the improved cookstove, which reduces the amount of fuelwood needed to achieve the same energy-service.

2.3 Renewable energy technologies

The specific conditions prevailing in rural mountain areas, such as high degree of inaccessi­bility and a fragile environment makes it crucial to recognise the long-term economic, social, and environmental benefits of renewable energy technologies (RETs). The inaccessibility means high costs for energy supply systems due to lack of infrastructure (Rijal, 1998). The quantity and quality of energy, as well as the low demand required by remote communities and availability of energy resources at local level also favours renewable energy systems. A well-planned use of resources can provide a long lasting energy supply and another benefit of RETs is the low need of transportation. It has the possibility to make a household or a com­munity independent and self-sufficient. Structural simplicity of a specific technology lessens the risk of dependence on external support for operation, maintenance and repair (Rijal, 1998). It is crucial to recognise what kinds of RETs that are best suited for different geo­graphical areas and applications in order to get a successful result.

There is a large potential for renewable energy forms in Nepal. The hydropower capacity, as stated before, is only 250 MW but approximately 42,000 MW is established to be technically feasible. But one of the major problems with hydropower is the extension of the electricity grid. Extending the grid over long distances is expensive and the loads are often too small, resulting in load factor- and stability problems for the system as whole. Building and main­taining long transmission lines over difficult terrain presents difficulties for the utility. This makes it almost impossible for many rural areas to become electrified. In these parts of the country renewable energy sources can be of major importance both for electrification and other purposes. These energy sources are primarily: biomass-related technologies (improved cooking stoves, biomass gasifiers, biogas plants), solar technologies (solar cookers, photo­voltaic systems, solar water heaters, solar dryers), wind pumps and turbines, and mini (up to 1000 kW)- and micro (up to 100 kW) hydropower (Rijal, 1998). The number of installations done in Nepal is summarised in table 2.3.

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Table 2.3. Installation of renewable energy technologies in Nepal (Based on Rijal, 1998).

Descriptions Unit NepalFamily-size biogas plants No. of units 32,000Improved cooking stoves No. of units 90,000Solar thermal systems Sq. m >10,000Solar cookers No. of units i

PV water pumps kWp2 55PV systems kWp 300Mini- and micro hydropower MW 8.6

1 Solar cookers are not yet installed anywhere in Nepal, but NGOs are promoting and showing the technology to rural population.2 kilo watt peak (see Appendix B).

Providing alternative energy sources in the remote areas of Nepal is associated with various different problems, as discussed earlier. The difficult topography, scattered population, poor infrastructure and lack of fossil fuel reserves implies that small-scale decentralised energy systems often are the most suitable in rural areas. Micro-hydropower is often a viable solution but it has to compete for water resources with needs for drinking- and irrigation water. Bio­mass in the form of agricultural residue and animal dung is often a good alternative, but the loss of natural manure must be taken into account. However, biogas-plants that converts bio­mass into gas enables using the energy value of the biomass for fuel, while preserving the nutrient content to be used as fertiliser. Biogas also has the added advantage of being able to be used in more efficient end-use devices. Where micro-hydropower is not a viable option other decentralised energy systems such as solar PV stand alone systems, can be of major importance.

2.3.1 Biomass-based technologies

Improved cooking stovesIn most of Nepal the demand for fuelwood exceeds the sustainable supply. Therefore different technologies to produce heat have been developed for cooking food. One of the technologies is the improved cooking stove, which is a modified version of the traditional cooking stove. The traditional cooking stove is used in rural households and runs on firewood. These stoves only have 10-15 % efficiency and they produce a lot of smoke. The smoke is a severe prob­lem that causes in-door pollution and there is a constant danger of a household fire. The im­proved cooking stove (ICS) makes it possible for a 30-35 % save in the consumption of fuel- wood (ICIMOD and CRT, 1997). It is also a lot safer for the user. An ICS can be made of local materials and installed by the villagers themselves. The chimney attached to the stove leads to less in-door pollution and the health conditions of the users improves. Another ad­vantage of this technology is that it does not change normal household routines, which makes it attractive to rural households. So far about 90,000 of the various types of ICS has been in­stalled.

Biogas plantsIn rural households livestock is an important component of the farming system and the animal dung can together with human night soil and tender plant parts or residues, be transformed into biogas. Biogas is produced when organic materials are anaerobically fermented with the help of methanogenic bacteria in air- and watertight containers, called biogas plants (ICIMOD and CRT, 1997). Biogas (methane gas) bums smokeless with a clear blue flame. The biogas can be used for: cooking meals, lighting, ran combustion engines, producing mechanical

8

power, generating electricity and operate kerosene-fuelled refrigerators by replacing kerosene with biogas burning in bunsen burners (ICIMOD and CRT, 1997). Biogas production per kg of dung varies from 0.02m3 in the mountains to 0.04m3 in the Terai (plains), and 0.07m3/kg of night soil for all ecological belts. Biogas demand for cooking is 0.25m3/day and per person in a potential household and for lighting (3hrs/day) at 0.45m3/day/potential biogas household (ICIMOD and CRT, 1997). The disadvantage is the high investment cost and sometimes cul­tural barriers. Biogas production is dependent on temperature and they do not work efficiently throughout the year at altitudes higher than 1500m (ICIMOD newsletter no 30, 1998). The number of biogas plants installed in Nepal exceeds 32,000, which is due to successful biogas programmes. These programmes have been successful because of the availability of govern­mental subsidies, interest and involvement of INGOs and private biogas companies that started coming up after 1990 (Rijal, 1998).

2.3.2 Mini- and micro-hydropower

Water mills have been used in Nepal for centuries. These traditional water wheels produce mechanical power for grinding. The units are limited to an output about 750 W (Rijal, 1998) and the efficiency is only 25% (ICIMOD and CRT, 1997). The improved water mill is basi­cally an improved version of the traditional water wheel. There is a couple of different ver­sions of improved water mill, but they all have improved components which increase the power output. The efficiency varies between 30% up to 70% (ICIMOD and CRT, 1997). The power output varies from 2-5 kW depending on the head and water quantity (ICIMOD and CRT, 1997). The improved water mill can besides grinding be used for rice dehusk- ing/polishing, oil extraction from seeds and generating electricity. There are over 25,000 tra­ditional water mills in operation throughout Nepal. Only 350 of them has so far been con­verted into the improved version (Rijal, 1998).

There are 947 units of micro hydropower (3 - 30 kW) in Nepal, with the installed capacity of 8.6 MW (Rijal, 1998). The successful development of micro-hydro in Nepal is due to differ­ent factors. The indigenous technology, starting with the traditional water wheel, has led to the establishment of a good manufacturing base in the country (Rijal, 1998). The relatively low capital investment, short construction periods, existence of large hydropower potential, simple operation, government incentives and the involvement of many international agencies are other factors that have contributed to the development (Rijal, 1998). The development of micro-hydro is unfortunately not only success. There are many problems that have led to a decline in the amount of installed micro-hydro plants. One of the major problems is the incon­sistency in the implementation of subsidy schemes. The subsidy on rural electrification was introduced in 1985, but it was discontinued in 1986. 1988 it was reintroduced and once more discontinued from 1990 until 1992. The government in 1993 once again reintroduced the sub­sidy (Rijal, 1998). The inconsistency have made the manufacturers hesitant to fully rely on the income generated through construction of micro-hydro plants, which effects the develop­ment negatively (Rijal, 1998).

2.3.3 Wind power

Wind power development in Nepal is still at an experimental stage. So far wind energy does not contribute to meet the energy needs of the country. Only one 30 kW wind power plant has been installed, but it was heavily damaged by high winds after only a few months of operation (Rijal, 1998). The main obstacles for wind power in Nepal are lack of reliable wind data for most parts of the country.

9

2.3.4 Solar energy

Sunshine has traditionally been used to dry agriculture products. Today solar energy is also used to heat water, produce electricity and it can be used for cooking and water boiling. One of the main industries in Nepal is tourism. Because of the large number of tourists the demand for hot water is increasing. The high intensity in solar radiation makes it possible and reliable to use solar water heaters instead of fuelwood for producing hot water. Solar water heaters are produced and marketed commercially. In the Kathmandu Valley there are more than 35 com­panies that manufactures solar water heaters (Rijal, 1998).

The principle for solar cookers is either to focus or absorb solar energy radiation at a flat plate collector and to transfer it to some heat exchanger or use it directly. Attempts have been made to develop solar cookers by NGOs, private organisations/workshops, and research institutions. They have not yet been developed on a commercial scale, but with effective research and de­velopment and proper approaches, solar cookers have the potential to replace fuelwood and kerosene in rural households (Rijal, 1998).

2.3.5 Solar photovoltaic technology

Solar photovoltaic systems are because of the reduction in prices gaining in popularity and are a good source of electricity for remote areas. Solar PV systems are used for telecommunica­tions, navigational aids, water pumping systems and for domestic applications in Nepal. Photovoltaics convert solar radiation directly into DC electricity, silently and without pollu­tion, and could claim to be the simplest and most elegant technology to harness the power of the sun. Solar cells or solar modules (which comprise an assembly of small cells to produce a larger unit) can be assembled into arrays to provide electrical power from milliwatts to megawatts. The solar cell generates electricity through the photovoltaic process. Sunlight is composed of photons and as they strike the solar cell some of these photons are absorbed. The excess energy is transferred to an electron, which uses the extra energy to free itself from its normal place. Once freed, the electron is available to become part of an electric current. An electric field in the cell provides the voltage needed to drive the current through an external load. The generated electricity is stored in a battery. A more detailed description of PV tech­nology, research and development can be read in Appendix B.

A PV system for domestic applications is called a solar home system (SHS). A small SHS (36 Wp), which this report is mainly focused on, provides DC electricity to power 3 or 4 lights, a black and white TV and a radio for several hours a day. The components of a SHS are de­scribed in chapter 4.4.1. PV systems are easy to install and, as a result of their simplicity, re­quire minimal maintenance. This, together with their freedom from re-fuelling makes them ideal particularly for niche applications, such as power for remote areas where modest amounts of power are needed.

2.3.6 PV technology and environment

PV technology is one of the most environmentally friendly energy technologies available to­day. During operation no pollution, waste or noise is generated, and no transportable fuels are required. The negative environmental impacts of PV technology are mainly associated with the manufacturing processes of the solar cells and the batteries needed for storage. Some of the new high efficiency cells include materials that are rare and poisonous. The production processes sometimes include hazardous elements. Making the PV cell requires energy that

10

may come from fossil fuels. However the energy payback time is only a few years, and once produced the cell generates electricity for more than 20 years. For crystalline silicon PV mod­ules conservative calculations of the payback time varies from 2.58 to 2.66 years in sunny areas (PV Power Resource, 1999). The solar home system also includes a lead acid battery, which will need to be replaced every 3 to 10 years, depending on battery type and use pat­terns. It is important that these batteries are taken care of properly and recycled as much as possible.

When the solar home system is in use it substitutes kerosene, which reduces the CO2 emis­sions. The C02 emission from an average household in rural communities is very low. How­ever, if a large number of household are involved, and it is seen over the 20-year life of a SHS the reduced emission becomes substantial. Apart from reducing C02 emissions, the reduction of kerosene use also has a big impact on indoor environment. Solar electricity also means a reduction in use of dry-cell batteries that usually end up in nature. Nepal is not a great con­tributor to greenhouse gas emissions, but its share is rising each year. Development of the energy sector is both needed and unavoidable, and if more energy is to be used and different alternatives exists, renewable energy systems are preferable.

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3 Energy and gender issues

Energy is the engine for development in the past, present and future. In the third world energy must be viewed as one of the most important means for fulfilling the social and economic development and to reduce human drudgery. For people living in poverty, the most pressing priority is the satisfaction of basic human needs such as shelter, availability of water, sanita­tion, and access to health services and education. Energy is essential to meet basic needs such as cooking and space heating. While low energy consumption is not a cause of poverty, the lack of available energy services correlates closely with many poverty indicators. Addressing the different problems of poverty involves increasing the level of energy services, such as efficient lighting technologies, water pumping technologies and efficient cookstoves. People in poverty are often the most vulnerable to negative environmental effects of energy devel­opment, and therefore the beneficiaries of renewable energy systems. Poverty often has a woman’s face. Of the approximately 1.3 billion people living in poverty, 70% are women (UNDP, 1997). The poverty among women is closely linked to their unequal treatment under the law and social welfare system, their lack of access to health care and education, their une­qual treatment of labour input and wages, and their lack of status in the family. Since women are the users and providers of energy and have the responsibility for children their involve­ment in development activities is of utmost importance.

3.1 Nepalese women and their status

Women in rural villages use the main part of the household energy. It is used for cooking, space heating and lighting. The energy sources that are used in a household are mainly fuel- wood, agriculture and animal residue, and kerosene for lighting. Generally it is the responsi­bility of women, with the assistance of children, to obtain the fuelwood, manage the residue and fetching water required by the household. A major three-year study on the status of women in Nepal was carried out by UNDP to determine the actual level of women’s partici­pation in, and contribution to the rural economy. The study revealed that of the total house­hold production, 81% is generated within the household for its own consumption and 19% is income derived from the market sector. Within the production system, women contribute over 50% of the time and labour required to maintain the subsistence household economy (WECS/NEA, 1995). 45% of the women in Nepal over the age of ten are listed as economi­cally active. 91% of them are dependent on agriculture. Women contribute to about 50 % of the household’s real income and men 45%. Whereas men spend 7.51 hours a day in economic and domestic activities, women spend 10.85 hours (Women in environment and coalition partners, 1995). Most women are self-employed; they basically work as unpaid family work­ers. The rural economy is often non-monetary, rural activities and labour inputs are bartered. Much of women’s work is therefore unrecognised as economic or as income generating ac­tivities.

For women in some parts of Nepal, deforestation and problems to find safe drinking water have increased the workload significant. This is because of the added number of hours they have to spend walking, to find fuelwood and safe drinking water. The increasing population in Nepal requires more food, water and energy to survive and burden the women with more hard work. Male out-migration to the Terai (plains) and to urban areas in search for better job op-

12

portunities are other problems in Nepal, which results in further increase of women’s heavy workload. Other problems women have to face are their limited access to health services, credit facilities, the level of literacy is low, and they have limited control over resources.

3.1.1 Women and health

Excessive workload, lack of proper nutrition, repeated pregnancies, poor education, and lack of access to health care facilities mark the lives of the majority of women in the country, par­ticularly those who are rural poor (Women in environment and coalition partners, 1995). One of the main reasons for the high incidence of obstetrically difficult births and anaemia in rural women is poor nutrition of women and girls, and the excessive workloads women and girls are made to bear from early childhood (Women in environment and coalition partners, 1995). There has been an increase in life expectancy for both females and males in Nepal. However, the life expectancy of women has been lower than that of men during the last two decades. The life expectancy for males is 56 years and for females it is 53 years (WECS, 1995). The infant mortality rate is high. It is significantly higher for males than females but, as table 3.1 shows, the pattern is reversed for the child (1-4 years) mortality rate. This is mainly due to the sex preference of males over the females, which leads to more attention and an all-over better treatment of the male child.

Table 3.1. Infant mortality and child (1-4 years) mortality rate, 1991 (Women in environment and coalition partners, 1995).

Mortality rate per 1000 Male FemaleInfant mortality (IMR) 104.7 91.0Child mortality rate (1-4 years) 47.8 54.5

The combustion of biomass fuels, for cooking and space heating, and the use of kerosene for lighting leads to severe indoor air pollution. The indoor pollution is mainly smoke produced in stoves and fireplaces in badly ventilated houses without chimneys. The problem is common in most parts of the country, particularly in the hills and the mountains where the climate is cold and the houses are designed to conserve heat. Chronic bronchitis and chronic obstructive lung diseases are very common health problems in Nepal. The traditional stoves utilise only one-seventh to one-tenth of the total heat from the fuel burned for cooking. The rest dissipates as waste heat and smoke. The smoke contains particulates, carbon monoxide and polycyclic organic materials, which are hazardous to health. The carbon monoxide in a typical Nepali kitchen using traditional stoves has been found to be about 0.06% and working in such envi­ronments for more than ten minutes is considered damaging to health (Hills and Ramani, 1990). The lack of basic amenities such as clean drinking water and sanitation is another problem, which are the main causes of water-borne diseases. Almost 80% of diseases in the country are directly traceable to unsafe water and poor sanitation (Women in environment and coalition partners, 1995).

3.1.2 Women and literacy

As table 3.2 shows only 25% of the women are literate. Like other developing countries eco­nomic constraints of rural people, son preference and a general lack of appreciation for the value of education for girls are some factors that keep the literacy level low. This makes it even harder for women to be a significant part of the rural society. Education should be pur­sued on massive scale to empower women with knowledge, skills and the self-confidence

13

necessary for their full participation in development. Also should health and nutrition training be a part of all adult literacy programmes, as well as a subject in school from the primary level.

Table 3.2. Literacy situation by sex (Women in environment and coalition partners, 1995).

Year Male (%) Female (%) National (%)1971 23.6 3.9 13.91981 34.0 12.0 24.01987 52.0 18.0 34.01991 55.0 25.0 40.0

3.2 Women in environment and natural resource management

Women are the providers of firewood, food, fodder and drinking water. They spend the same amount of time as men in agricultural production. Local people of rural areas have survived for centuries both with regard to economic and social aspects. The knowledge that these peo­ple, particularly the women, possess about managing resources, specifically energy, has to be counted as a valuable asset in the cause of sustainable development (WECS, 1995). They also have the knowledge of the natural eco-system, agriculture, medicine and wildlife. Perhaps even more important, women influence the direct and indirect energy consumption patterns of their households. The knowledge and experience of these women, as well as their active par­ticipation, must be used and integrated in the management of eco-systems and in programmes and policies for environmentally sustainable development.

Disasters such as droughts, floods, soil erosion, deforestation and inappropriate land use have resulted in the deprivation of traditional means of livelihood. Such conditions have pushed great numbers of poor women into marginal environments where critically low levels of water supplies, shortages of fuel, over-utilisation of grazing and arable lands, and population density have deprived them from their livelihood (Women in environment and coalition partners, 1995). As a result of environmental degradation women have to work even harder and abuse the land even further in order to provide for the basic household needs. This put the women in an awkward position. Partly they are the people with the knowledge of the land, partly are they the direct abusers of the land. This is why women are in a key-position of a sustainable rural development. Until women’s situation is fully understood and gender based programmes planned and implemented, rural energy- and environmental programmes are likely to remain ineffective and unsustainable (Rijal, 1998).

3.3 The role of renewable energy technologies

Most rural women are not yet exposed to different renewable energy technologies. At the same time there are many renewable energy technologies that offer significant potential in terms of reducing women’s drudgery, and improving health conditions (Rijal, 1998). Im­proved cooking stoves, solar cookers, solar dryers and small-scale biogas plants all have di­rect positive impact on women’s heavy workload. This means that the women are the benefi­ciaries of renewable energy technology. Many energy-related policies and programmes have great implications, but none of the policy statements, made by the government, have made any reference to the importance of gender roles in the energy sector and the involvement of women in energy development programmes (Rijal, 1998). The social unacceptability of RETs is also a problem when introducing programmes, which needs to be understood and consid-

14

ered. There will be a need for new user behaviour if the technologies shall be accepted widely. For example is cooking outside the home restricted traditionally, which makes the use of solar cookers difficult. Certain ethnic groups and communities have taboos against han­dling animal dung and the biogas technology is therefore not acceptable (ICIMOD and CRT, 1997). Other technologies as solar home systems will not have a direct impact on the work­load of women, but have other positive effects.

3.3.1 Benefits of PV technology

The elimination of kerosene lamps means a considerable improvement in indoor environment. In poorly ventilated houses the fumes from kerosene lamps can create serious health prob­lems. Installation of SHSs improves the health situation inside the house. The World Bank estimates that 780 million women and children breathing kerosene fumes inhale the equiva­lent of smoke from 2 packs of cigarettes a day (SELF, 1999). Kerosene lamps are also a seri­ous fire hazard, resulting in homeless families; killing and maiming tens of thousands of peo­ple each year. Because of the reduction in use of kerosene lamps, when a SHS is installed, the risk of fire reduces. PV technology can also be used to operate remote health stations, refrig­erators for vaccine and medicine. PV technology is already in use for operating remote tele­communication centres in many places.

Electricity is important for social development. Electricity or high-quality lighting is essential for improving the literacy- and education- level in the country. The children and especially the girls can benefit from electricity with the opportunity to study during the evenings, not in­truding on the time for their daily chores. It provides opportunities for women to spend time on social development activities, such as literacy classes, information and educational pro­grammes through TV and radio. Studies have also shown a direct correlation between the availability of electric light and lower birth rates (SELF, 1999). Access to television and ra­dios give the rural people opportunity to take part of information and entertainment that used to be beyond reach. Improving the quality of life through electrification in rural areas is espe­cially important for the younger population, and in many cases it prevents the younger men from migrating to the bigger cities.

Electrification and electric light can extend the workday into the evening hours and provide opportunities for rural people to spend time on income-generating activities. Especially where small cottage- and home industries exists, this can be of major importance. If women have an opportunity to earn their own money, they will in the future have easier access to different credit facilities, and be part of the economic development. Extra money will also give the women possibilities to invest in technologies that have the potential to reduce their workload, for example improved cooking stoves. However, there is also a risk in extending the workday. It can result in increased workload and may cause serious problems.

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4 Solar electricity in Nepal

Solar energy has been used in Nepal for centuries for purposes such as drying agricultural products and heating water. However, it is quite recent that different technologies have been introduced to make the utilisation of the solar energy more efficient and to convert it into the modern energy form of electricity. The difficulties associated with the development of the rural energy sector, means that PV technology often is a cost-effective as well as practical solution. The favourable latitude and elevation gives Nepal a good potential for PV technol­ogy in terms of solar radiation. During the eight sunniest months of the year, the number of bright sunshine hours varies across the country from 7 to 10 hours per day. During the least sunny month (July), bright sunshine hours vary between 3 and 5 hours. Recently, measures of solar radiation have started in different parts of the country. Meanwhile, the solar radiation has been estimated, using climatic parameters, for 29 locations around Nepal. These estima­tions show that the average solar radiation varies from 3,6 to 6,2 kWh/m2/day. According to the level of radiation, Nepal can be divided into 4 zones and 65% of the country belongs to the most favourable zone. (Rijal, 1984).

4.1 Applications

The market for PV technology is growing in Nepal. Areas of applications include professional systems, water pumping systems and household electrification. PV technology is also used to some extent to supply power for refrigeration of food and medicine and to operate rice mills, poultry incubators and various electro-mechanical equipment.

4.1.1 Professional systems

PV technology has been used in Nepal by the Department of Civil Aviation and Nepal Tele­communication Corporation for over 20 years to power radio communication systems and navigational aids at remote and isolated sites across the country (WECS, 1995c). Today, the Department of Civil Aviation is using 365 solar modules with a total installed wattage ex­ceeding 14 kWp as navigational aids at 28 airports and the Nepal Telecommunications Corpo­ration has solar powered stations all over the country with a total installed capacity of over 470 kWp (NSES,1997). Other professional users of PV technology include the Department of Forestry, the Nepal Police and the Royal Nepal Army.

4.1.2 Water Pumping Systems

PV technology is also used to some extent in pumping systems for drinking water and irriga­tion. In the Kathmandu Valley, the Royal Nepal Academy for Science and Technology (RO- NAST), with Japanese assistance, have constructed two experimental pumping systems for drinking water. One of these is a 4 kWp system located in Kathmandu and the other is a 40 kW system in Bhaktapur. In addition to this, 9 water pumping systems for drinking and irri­gation purposes with a total capacity of 55 kWp have been installed in different districts of Nepal. There have been various problems with these systems and only 6 are reported to be in working condition (NSES, 1997).

16

4.1.3 Household electrification

■The first step toward rural household electrification with PV technology was taken in 1983 when an agreement was signed between His Majesty’s Government of Nepal and the govern­ment of France for the general economic development of Nepal. A part of the agreement in­cluded the financing of solar power plants, with the Nepal Electricity Authority (NBA) as the implementing organ. The result of this was the installation of solar power plants in Simikot, Gamghadi, and Kodari/Tatopani with a total installed capacity of 130 kW. (WECS, 1995c and WLG, 95) These projects were centralised systems designed to provide over 500 households with AC-power in the evenings. All plants are still running, but they do not produce at full capacity due to design flaws, transmission losses and consumer over demand. The Simikot and Gamghadi plants only supply DC power due to problems with the inverters. Other prob­lems include problems with the transformers, inability to repair equipment locally or even nationally, and damage to the panels and reduced output due to extreme weather conditions and heavy snowfalls. (WLG, 1995 and NSES, 1997).

Some of the problems with centralised systems can be avoided in decentralised ‘stand alone’ DC-systems. In these systems there is no need for sophisticated electronic equipment such as inverters and transformers, which often are the weak points. Since there is no need for trans­mission, the costs are reduced and transmission losses are avoided. With a decentralised sys­tem, a failure at one users end does not effect other systems and each module can be mounted on the roof of a building not taking up valuable space (WLG, 1995). For these reasons, solar home systems are gaining in popularity as a means of rural household electrification.

4.2 Solar home systems

A small solar home systems system provides DC electricity to power 3 or 4 lights and a radio or television for several hours per day. There are three private companies involved in the manufacture of solar home systems and components in Nepal. These are Lotus Energy, the Solar Electricity Company and the Wisdom Light Group (presented in section 4.4.4.). The systems supplied by the different companies are similar and consist of a PV module (32-36 Wp), a battery, a battery charge controller, lights and a point for connection of a radio or 12V black and white television, see figure 4.1.

4.2.1 History of implementation

Pulimarang SPV Home System ProjectThe first program to electrify a village with solar home systems was financed through the So­lar Electric Light Fund (SELF) of USA and jointly implemented with the Nepali NGO Centre for Renewable Energy (CRE) and the Nepali manufacturer Solar Electricity Company (SEC). This program resulted in the installation of 64 Solar Home Systems in Pulimarang village in Tanahun District in the beginning of 1994 (This program is discussed in more detail in chap­ter 5).

17

PV module

Chargecontroller

Junctionbox

Voltage regulator

Radio

BatteryTelevision

Figure 4.1. A typical Solar Home System.

LEVEL-UPIn April of 1995, another solar home system electrification program, Lotus Energy Village Electrification & Lighting Utility Program (LEVEL-UP), was initiated when a contract was signed between Lotus Energy, a local PV company, and the US Bureau of Oceans and Inter national Scientific Affairs (OES). The funds of a ‘Solar Trust Fund’ were to be used to give villagers a low interest ‘revolving’ loan, with which they would be able to pay for the systems in full. The payments made back to the loan would in turn be used to finance other villagers’ purchases of systems. However, while Lotus Energy were conducting surveys to determine where the installations were to be made, the success of the Pulimarang project and the posi­tive indications of the LEVEL-UP program, had encouraged the government to launch a sub­sidy program for household PV-systems. The Solar Trust Fund was shifted to provide a 50% subsidy for 49 ‘seed systems’ installed in local NGOs and community buildings in various districts of Nepal, thereby exposing more Nepali villagers to solar electricity (LOTUS, 1998).

4.2.2 Solar home system installations to date

Solar home systems are increasing in popularity all over Nepal and the government subsidy program (described in the next section) launched in early 1996 dramatically increased the demand for solar home systems. By the end of the fiscal year 1997/98 the number of installa­tions funded through the government subsidy program had reached 961. In addition to this another 53 systems have been installed through a 70% subsidy given by the Ministry of Local Development (SEC, 1998). Along with the increase in sales of subsidised systems, the num­

18

ber of private, non-subsidised sales are also increasing. By the end of FY 97/98 well over 2000 solar home systems were installed all over Nepal. A breakdown of installations through government subsidies up to FY 97/98 is given in table 4.1.

Table 4.1. Number of SHS installations through government subsidies (SEC, 1998).

District Fiscal Year SubsidisedThrough1995/96 1996/97 1997/98

Kavre 40 (LE)1 100 (LE) 30 (LE) ADB/NTerhathum 104 (WLG)2 32 (WLG) ADB/NDhading 89 (SEC)3 61 (SEC) ADB/NGorkha 11 (LE) 69 (LE) ADB/NPanchthar 50 (LE) 80 (LE) ADB/NBhojpur 59 (SEC) + 1 (LE) ADB/NPalpa 19 (SEC)+11 (LE) ADB/NKhotang 30 (SEC) ADB/NRamechhap 30 (SEC) ADB/NTanahun 30 (SEC) ADB/NDailekh 85 (SEC) ADB/NParbat 30 (SEC) ADB/NParbat 53 (SEC) MOLD12 Districts 40 354 620 Total: 10141 LE: Installed by Lotus Energy2 WLG: Installed by the Wisdom Light Group3 SEC: Installed by the Solar Electricity Company

For the fiscal year 1998/99 government subsidies are available for nearly 1700 systems. How­ever, the available subsidies are not sufficient to meet the increasing demand. For FY 1998/99 over 4000 applications for subsidised solar home systems were filed, and the cumulated de­mand may be as high as 10000 (Adhikari, 1998).

4.3 The government subsidy program

When the government subsidy program was launched in 1996, it provided a 50% subsidy of the system cost. At that time, the cost of a system was approximately NRs (Nepali Rupees) 30.000, and the remaining 15.000 were provided as a loan from the Agricultural Development Bank of Nepal (ADB/N). A down payment of 5000 was required and the interest of the loan was 16 %, payable over 10 years. There have been some changes in the subsidy scheme and today the repayment period has been reduced to a maximum of three years. The interest varies from 14.4% to 17%, depending on number of months used to pay back the loan. The price of a system has increased to about NRs 33.500, but the maximum subsidy amount is 15.000. The subsidy is only granted for ‘standard-size’ solar home systems, which means a 36 Wp system from SEC or Lotus Energy, or a 32 Wp system from Wisdom Light Group.

4.3.1 Subsidy and loan procedure

The National Planning Commission (NPC) determines the size of the subsidy fund for solar home system for each fiscal year and the energy sector of the ADB/N decides which districts and Village Development Committees (VDC) will be included. The main criteria’s when choosing districts and VDCs are that they are suitable for solar electricity and that the national

19

grid is not expected to reach the area within at least three years. The central ADB/N bank cir­culates a Village Electrification Program Letter to concerned local ADB/N branch-offices, that displays the letter on a notice board and calls for applications (Adhikari, 1998). At the same time the solar companies send field staff to install a demo system and evaluate the inter­est among the villagers. The solar companies conduct surveys to assess villagers ability to pay for the systems by asking questions about their income and monthly expenditures on kerosene and dry-cell batteries. Interested villagers fill out an application and produce a landowners certificate as collateral for the loan. If the application is approved by the ADB/N, the villager pays a NRs 5000 down payment and the bank issues a coupon for the full amount to the re­quested solar company. When a sufficient amount of coupons have been issued (normally 30), the company ship the solar home systems to be installed by the field staff. When the installa­tion is completed, the company receives the payment from the bank (Lotus Energy, 1998).

4.4 Implementation

When introducing solar home systems in rural areas, customer satisfaction must be the pri­mary goal (Cabraal et al, 1996). Customer satisfaction is greatly determined by quality of the system and the availability of ongoing service and maintenance. Poorly designed systems, and little or no after-sales service often lead to failing systems, which undermines local confi­dence. Well-designed systems that receive regular maintenance, on the other hand, show good performance over many years. The users need to be informed of the needed maintenance, such as filling up the batteries with distilled water and cleaning the panels when needed. Even a well-designed system with high quality components will need service. Components will fail and if spare parts or services are not readily available the systems, along with the payments, may be ignored. As solar home systems are often used in remote areas, it is important that there are local representatives that the users can turn to. These local representatives should be given adequate training to deal with the various problems that can arise, and should have a small stock of spare parts that need to be replaced frequently, such as lightbulbs and fuses. Ideally, the local technicians should not only be able to replace failing parts, but also repair electronic equipment at circuit level. In remote areas where service is not readily available or very costly it may be worthwhile to provide over-designed systems with high-quality batter­ies.

It is important that the users understand both the possibilities and the limitations of the sys­tem. If the user is expecting too much from the system he is likely to be disappointed which could negatively effect both the payments and the maintenance of the system. When afforda­bility is the main issue, users should have the option to choose between different system sizes, but be made well aware of the limited capabilities of a smaller system. Ideally, the system should be able to be upgraded if the user in the future has bigger demands for electricity and his income allows. When the customer makes the decision to buy a solar home system he also needs to be aware of all costs involved and what future costs to expect. He must be informed about the expected life of the different components, what warranties are given and how much a new component will cost. Especially the battery is expensive to replace and if the user has little money he may be tempted to buy a cheaper battery of inferior quality, which in the long run may mean higher total battery costs. He also needs to be aware of the importance of the charge controller. If this would break beyond repair after the warranty time it is fairly expen­sive to replace, and the user might choose to operate the system without a charge controller which will affect the battery-life negatively.

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4.4.1 Solar Home System components

The durability and performance of the system depends on each of the components, which makes it important that all components are of high quality. A general description of the solar home system components and some details on what is provided with the standard solar home systems in Nepal are given below.

ModuleThe module is usually the most reliable of the components in a solar home system, with an estimated service life exceeding 20 years. The SEC and Lotus Energy uses Siemens solar modules made from single crystalline silicon cells. In early installations 35 Wp modules were used, but now a 36 Wp module is part of all the standard SHS. The Wisdom Light Group uses 32 Wp modules from Solarex made from polycrystalline silicon cells.

BatteryThe battery is charged by the solar module during the sunny hours of the day, and is dis­charged at night when running the loads connected to it. Lead-acid batteries of the type used in cars are often used, as they are relatively inexpensive and easily available. However, car batteries are only designed to be discharged to 15 % of their maximum charge (SELF, 1999), which is not ideally suited for the charge and discharge patterns of solar home systems. When used in solar home systems their service life is perhaps 3-5 years. Deep cycle batteries (solar batteries) with thicker, heavier plates and more electrolyte reserves are more expensive, but in return they are less sensitive to overcharging and discharging (70-80 % of their maximum charge) (SELF, 1999) and have a longer service life, up to 5 to 10 years, depending on use patterns. Ideally, the batteries should be enclosed in a case to protect it from dust, smoke and extreme climates, which reduces the need for maintenance. There is also a potential danger (burns from battery acid, shorts and explosions) if the batteries are left exposed on the ground and accessible to children (Cabraal et al, 1996).

In most installations made by the SEC Japanese-made car batteries have been supplied with the solar home system. Although these batteries have worked satisfactory up to 5 years in some installations, the longer life of deep cycle batteries has motivated a change to these bat­teries. Although the customer is given a choice of battery, today all companies provide 70 Ah deep cycle batteries with their standard solar home systems. The batteries are imported, mostly from USA and Bangladesh.

The charge controllerThe charge controller is used to control the electricity flow between module, battery and loads. It protects the battery from over-discharging by cutting off the loads when the charge level falls below a certain level. It also protects the battery from overcharging by cutting off the current from the module at a given level.

In new standard installations all companies use similar 10 A charge controllers. All compa­nies manufacture their own charge controllers, which have been upgraded over the years. The functions includes low voltage disconnect (LVD) and over-charge protection and are designed with solid state switching, which eliminates power-consuming and unreliable mechanical re­lays. The charge status of the battery is indicated on the front panel. The controller is enclosed in a case that protects it from moisture, insects and extremes of temperature. The charge con­trollers are manufactured locally by each company.

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LightsThe lights provided with the solar home system are high efficiency fluorescent lights. The wattage usually ranges between 7 and 10 watts and 3 or 4 lights are usually included. A 9 W compact fluorescent light provides illumination equivalent to that of a 60 W incandescent lightbulb. Fluorescent lights, however, require well-designed ballasts to ensure an acceptable operating life. Ballasts can often be one of the most problematic components of the system. In some cases, for instance area lighting, low-watt (1-2 W) incandescent lights can be preferable.

With the standard solar home system SEC provides 10 W fluorescent tube lights (Hitachi or Toki) mounted in a metallic reflective fixture. WLG provides similar lamp sets with 9 W fluo­rescent tubes from OSRAM. Lotus Energy uses 7 or 9 W compact fluorescent bulbs from Phillips mounted in a white reflective fixture with an acrylic housing that helps prevent smoke and insects from spoiling the bulbs and reflector. Fixtures and ballasts are manufactured lo­cally while tube-holders and tubes/bulbs are imported

Module mounting systemThe module support frame should last as long as the module itself, which is at least 20 years. It should be corrosion resistant, and electrolytically compatible with materials used in the module frame, fasteners, nuts and bolts (Cabraal et al, 1996). Roof mounting is often pre­ferred over pole mounting as it reduces the risk of module shading. If it is mounted on a pole, it should be rigidly secured and high enough to discourage tampering, yet accessible for cleaning. If it is mounted on the roof, it should be secured to the roof beams, leaving enough space to the roof surface itself to ensure cooler and more efficient operating conditions (Cabraal et al, 1996).

All companies provide similar mounting system with the systems. It is usually an aluminium or galvanised frame suited for both roof and pole mounting, which can be tilted according to sun angle.

Wiring materialIncluded in a SHS are also a junction box, wires and switches. A connection point for a radio and/or a 12 V black and white television is often included. A voltage regulator, for appliances that does not run on 12 V, is usually extra. All wire and switches that are exposed to the sun should be sunlight proof and sized to keep voltage drops acceptable. Load wiring should not be undersized, as is often the case, particularly when additional light fixtures are installed. Insulation colour conventions or labelled wires should be used to ensure that correct polarity is maintained. Connections should be soldered, or preferably, terminal block connectors should be used (Cabraal et al, 1996). Direct battery connections must never be done.

4.4.2 Costs and warranties

The cost of a standard solar home system in Nepal is approximately NRs 33.500. The total cost varies a little between the different companies, as do the design and the cost of the in­cluded components. The warranties have changed over the years, for instance during 1998 the SEC increased the warranty for the components (except module) from 1 to 2 years. Lotus En­ergy has also given a three-year pro-rated warranty for the batteries. Typical costs and war­ranties for the components are given in table 4.2.

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Table 4.2. Cost and warranties of components.

Component Cost (NRs) % of total cost Warranty (years)Module 17500 52 101Battery (deep cycle) 65002 19 23Charge controller 2500 8 23 lights (fixture + bulb/tube) 3500 11 24Wiring and connection materials 2000 6 2Mounting material 1500 4 2Total 33500 100Guaranteed not to lose more than 10% of the rated power output within 10 years.

2 Car battery costs approximately NRs 4500.3 One year warranty for car battery.4 Fixture and ballast.

4.4.3 Maintenance and repairs

In Nepal, the solar companies are responsible for the installation as well as the servicing and education of customers. When the systems are being installed the operation is explained to each customer. He is told about the needed maintenance and what to do if he has any prob­lems. He also receives a manual and maintenance chart. When a number of installations are being made in the same area, the solar company engages a local ‘village technician’ to help out with the installations. This person receives training in wiring and connection and how the system works. He will then be responsible for service and warranty administration in his area. When the villagers have problems with their system they can contact the village technician who has a small stock of spare parts and a set of tools. Ideally, the technician should be able to repair the components circuit level, but it is often difficult to find people skilled enough for this in rural areas. If the technician cannot repair the component, he replaces it and when he is out of stock he goes to Kathmandu to get new parts. The technician usually has a small fixed salary for his work in addition to a ‘commission’ on replaced components. If there is demand in the area the technician can eventually become distributor for the company. The solar com­panies also encourage the formation of a Village Solar Committee and Pulimarang is a very good example of a village with a well functioning solar committee. Besides acting as village technicians and keeping a stock of spare parts, the members of the solar committee holds meetings where the villagers discuss problems with their systems. The solar committee can also coordinate the purchase of new batteries when needed to get better prices from the sup­pliers.

4.4.4 Manufacturers

There are three private companies in Nepal involved in the manufacturing and dissemination of PV systems, all located in Kathmandu. They are Lotus Energy, the Solar Electricity Com­pany and the Wisdom Light Group.

Lotus Energy Pvt. Ltd.Lotus Energy was established by two Americans in 1993 and today has about 60 employees, including 24 authorised agents in different areas of Nepal (Ghimire, 1998). The main activi­ties include manufacturing and assembling of solar home systems, larger DC based solar PV systems, complete 220 AC solar PV systems and solar water pumping systems. Activities also include designing, disseminating and installing systems; training programs for technicians;

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and product development of the electronic balance of system components for solar home sys­tems and low energy appliances. Their main products are PV modules from Siemens, solar batteries, inverters, compact fluorescent lighting, battery charge controllers and solar lanterns with radio/cassette output. The company is also involved in the Electric Vehicle industry and manufacture wind/PV-wind hybrid systems. Lotus Energy has completed a number of electri­fication and water pumping projects around Nepal. Major projects include ‘Lotus Energy Village Electrification & Lighting Utility Program’ (LEVEL-UP) funded by US Bureau of Oceans and International Scientific Affairs (OES), a ‘Solar Technician Training Program’ funded by UNESCO and ‘Terai Solar Powered Drinking Water Pumping Project’ funded by the Canadian Co-operation Office and British Water Aid (RETRUD, 1998).

Solar Electricity Company Pvt. Ltd.The SEC was established in 1991 and manufacture, disseminates and promotes PV technol­ogy. They have about 25 employees and dealers in different areas of Nepal (Tamrakar, 1998) They manufacture and assemble complete solar home systems, solar water pumping systems and vaccine units. Other activities include research and training in the field of PV technology. Their main products include PV modules from Siemens, battery charge controllers, compact fluorescent lamp sets, DC/DC converters and other accessories. The company was involved with the implementation of the “Pulimarang SPV Home System Project” fimded by the Solar Electric Light Fund of USA and has been involved in other projects with INGOs such as Lu­theran World and Action Aid Nepal (RETRUD, 1998).

Wisdom Light Group Pvt. Ltd.The Wisdom Light Group was established in 1991 and has about 18 employees plus a number of agents. The company manufactures and distributes PV modules, battery charge controllers, high efficiency DC lamps, solar lanterns, DC-DC converters, AC-DC inverters and DC water pumping systems. They have US-made lamination equipment to manufacture solar modules, but current volumes and pricing makes importing modules more economical. The Wisdom Light Group other activities include research for the development of their products and train­ing on installation, wiring, maintenance and repair of solar power systems (RETRUD, 1998).

4.4.5 Governmental organisations and NGOs

There are a number of different governmental and non-governmental organisations involved in the implementation of solar energy in Nepal. Until recently, the different organisations and the private companies have been working more or less independently of each other. In the end of 1996, the Alternative Energy Promotion Centre was established, which will hopefully lead to better cooperation and coordination between different organisations. The Alternative En­ergy Promotion Centre and some other involved organisations are presented here.

Alternative Energy Promotion CentreIn November 1996 His Majesty’s government of Nepal established Alternative Energy Pro­motion Centre (AEPC). The immediate objective of the AEPC is to popularise and promote the use of renewable energy sources in the rural areas of Nepal. The AEPC will work for the commercialisation of alternative energy technologies and increasing the availability of fi­nancing by attracting and managing funds from national and international agencies. The AEPC will also be responsible for developing and testing quality standards for alternative energy technologies (Lotus Energy, 1998). The long-term goals of the AEPC include pro­tecting the environment, maximising the benefits of the micro-hydro, reducing the migration

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of rural people to urban areas, and raising living standard of the rural poor and the women in particular (RETRUD, 1998).

Agricultural Development Bank of NepalThe Agricultural Development Bank of Nepal (ADB/N) a government-owned bank, with nearly 700 branches around the country. The bank has the responsibility to implement effec­tive approaches for the development of agricultural and argiculture-related fields and its main objective is to provide credit and technical support to agricultural and rural development ac­tivities. The ADB/N has been involved in the development of renewable energy for 25 years and the aim of the energy program is to improve the quality of life of the rural people through the development and dissemination of technologies compatible with local resources (Lotus Energy, 1998). The government subsidy program for micro-hydro and bio-gas have been chanelled through the ADB/N for a number of years, and since 1996 the ADB/N also admin­isters the subsidy for solar home systems.

Nepal Solar Energy SocietyNepal Solar Energy Society (NSES) was established in 1996 as a non-profit NGO dedicated to the advancement of utilisation of solar energy. Its interests include all aspects of renewable energies in general and solar energy in particular, including characteristics, effects and meth­ods of application. Furthermore it provides a common meeting ground for all those concerned with this issue. NSES is a member of the International Solar Energy Society, which is recog­nised by the United Nations as an NGO with consulting status (RETRUD, 1998).

Centre for Renewable EnergyThe Centre for Renewable Energy (CRE) was established as a non-govemmental organisation in 1992. The long-term goal of the CRE is to work for an increased use of sustainable energy technologies such as solar PV, solar thermal, wind, micro-hydro and bio-gas. Some of the objectives of the CRE include establishing a national information bank on renewable energy technologies and conducting awareness and training programs to develop skilled manpower within the country (RETRUD, 1998). The CRE was involved with the implementation of the ‘Pulimarang SPY Home System Project’, the first program to electrify a village with solar home systems in Nepal.

4.5 The place for solar home systems

The general niche for solar homes systems are remote and isolated areas where energy de­mands and load densities are low. For households that today use kerosene for lighting and disposable or automotive batteries to power radios and other appliances the solar home system may be the optimal solution. However, when planning for rural electrification all alternative technologies must be considered and the choice made on a least-cost economic basis. The economics of different energy supply technologies have to be evaluated according to the cost of supplying equivalent levels of energy services (Cabraal et al, 1996). Solar home systems are capable of providing power for household needs (i.e. lighting and appliance loads) but do not supply power for productive loads. Consequently, the first step toward choosing the best suited technology for a specific area, must be to evaluate the energy needs and end-use activi­ties in the area. Further, the load density, number of households to be served and other load characteristics must be surveyed. Appropriate technologies also need to be evaluated based on location specific conditions, such as the annual availability, conflicting use of resources and environmental constraints. Once local needs and technical feasibility have been considered and appropriate supply options have been selected, an economic evaluation can be made.

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4.5.1 Economic comparison

It is beyond the scope of this report to carry out an economic analysis, but results from studies carried out in Indonesia in 1993 (Cabraal et al, 1996) and in Nepal 1995 (WLG, 1995) are summarised to give an indication as to when solar home systems may be the least-cost option. The options available to satisfy rural households’ energy requirements for lighting and opera­tion of small household appliances and evaluated in the studies are:

• Isolated grids: Micro-hydropower stations or diesel power stations serve households via a limited distribution system, where only customers within reach of the isolated grid are able to be connected.

• Central grid extension: Power is provided to households from a distribution network connected to the central grid.

• Kerosene and batteries: Kerosene is used for lighting and disposable dry-cell batteries or rechargeable lead-acid batteries are used to power small electric appliances. Rechargeable batteries have to be charged at central charging stations using central grid or diesel gen­erators.

• Solar home systems (SHS): Lighting and electricity for operation of small appliances are provided by lead-acid batteries charged by the photovoltaic modules. The charging of the battery is dependent on the daily available sunlight.

Solar home systems vs. kerosene and automotive batteries

In one of the Indonesian studies, the monthly levelized economic cost of PV for household electrification is compared with a kerosene/lead-acid battery alternative for various combina­tions of energy service levels. The results of the study are given in table 4.3 and show that PV systems is the least cost alternative for all but the lowest service level.

Table 4.3. Levelized monthly economic costs of kerosene/battery and PV for rural households in Indonesia in 1993 USD (Cabraal et al, 1996).Service level Daily services pro- Solar home system Kerosene and batteries

vided Equipment Monthlycost

Equipment Monthlycost

Lighting I 8 hrs. area lighting Solar lantern 2.25 Wick lamp 2.00

Lighting II 6 hrs. task lighting Solar lantern 2.25 Mantle lantern 2.50

Lighting/ Electric I

8 hrs. area lighting6 hrs. task lighting60 Wh for other loads

50 Wp system 8.25 2 wick lamps1 mantle lantern1 battery

9.25

Lighting/ Electric II

12 hrs. area lighting14 hrs. task lighting150 Wh for other loads

100 Wp system 13.75 3 wick lamps2 mantle lanterns2 batteries

19.25

The basis for the economic analysis and key assumptions for the 50 Wp system and the kero­sene/battery alternative are given in Appendix C. The assumed costs of the solar home system and its components, as well as for kerosene and batteries are comparable to costs in Nepal. It is therefore reasonable to assume that an analysis carried out in Nepal under the same circum­stances would give similar results.

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Solar home systems vs. grid-based power supply

A second study carried out in Indonesia compares the economic cost of solar home systems to grid-based power supply. Three different cases are analysed, where households receive equivalent levels of energy service from both PV systems and grid-based electricity. The en­ergy service level corresponds to that of Lighting/Electric I provided by a 50 Wp system in the example above (8 hours of area lighting, 6 hours of task lighting and 60 Wh for other loads). The study identifies the ‘break-even’ thresholds for grid electricity and PV systems in communities with up to 1000 households and household densities between 50 and 150 house­holds/km2. The break-even threshold depends on the load-density as well as the distance from low- (LV) and medium- (MV) voltage lines. The cases presented are:

• Case 1: a remote area where the grid option is to construct an isolated grid powered by a diesel or a small hydroelectric plant.

• Case 2: a village located 5 km from an MV substation or line.• Case 3: a village located 3 km (the typical maximum distance for LV line extension) from

an LV line.

The break-even curve in each case can be seen in figure 4.2. In case 1, the isolated village, solar home systems have its major economic niche and are typically cost effective in villages with less than 200 households. In case 2, where the village is located 5 km from the MV line, solar home systems are the least-cost option typically if fewer than 100 households are to be served. In case 3, where the village is located 3 km from the LV line, solar home systems are cost effective only if fewer than about 50 households are to be connected. Key assumptions and basis for the economic analysis are given in Appendix C.

The economic analysis in Indonesia is based on LV-line costs of USD 5085 per km installed and MV-line costs of USD 9825 per km installed. This can be compared to USD 10000 and USD 13500 for 11 kV-lines and 33 kV-lines respectively in Nepal (NBA, 1998). The esti­mated losses for the case of Indonesia are 10%, while in Nepal the losses are up to 27% (NEA, 1998). This, together with the fact that load densities often can be assumed to be smaller in Nepal than in Indonesia, implies that solar home systems would be cost-effective at least at the same distance from the grid.

The study conducted by the Wisdom Light Group in Nepal in 1995 also compares solar home systems with grid-based power supply. The results of this study show that central grid-based electricity costs grow exponentially with increasing distance, and becomes costlier than solar home systems when the load centre is located more than 40 km from the grid point. The study also compares solar home systems to 50 kW micro-hydro and diesel power plants. The results show that micro-hydro is the least-cost alternative, followed by diesel, provided the demand is sufficient. However, it is noted that the micro-hydro plant should be located within approxi­mately a 3 km radius from the load centre in order to realise the economic benefits. It is also noted that if the diesel or micro-hydro power plants are located too far away from the nearest motorable roadhead, the increased costs of maintenance and fuel transports, may eliminate the economic benefits.

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No of households

Case 1Isolated village

No of householdsHousehold density (households/km2)

Case 2Village located

5 km from MV line

MV grid exten­sion is least cost

PV systems are least cost

50 60 70 80 90 100 110 120 130 140 150

PV and gridcosts are equal

Household density (households/km2)No of households

Case 3Village located

3 km from LV line

MV grid extension is least cost

50 \ 60 70 80 90 100 110 120 130 140 150PV systems are least cost -4 Household density (households/km2)

PV and grid costs are equal

Figure 4.2 Break-even thresholds for PV- and grid-based electricity supply, by village loca­tion (Cabraal et al, 1996).

4.5.2 Comments to economic comparison

The economic comparisons above show that solar home systems often are the least-cost alter­native in isolated areas with low energy demands. However, the economic comparisons pre­sented do not take into account the possibilities for load growth. If the demand increases, the marginal cost of meeting the higher demand would be lower in a grid-based system (Cabraal et al, 1996). Future productive loads may also need to be considered in which case the solar home systems would need to be backed up by for example diesel generators. On the other

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hand there are a number of benefits of solar electricity that can not be measured in economic terms.

In isolated areas it is important not to be too dependent on external support. In areas where servicing, maintenance and fuel supply are difficult to manage the higher cost of solar home systems may still be justifiable. When comparing solar electricity and diesel, the environ­mental benefits of solar electricity are obvious. Choosing solar electricity over diesel also reduces the country’s dependence on imported fuels, which saves foreign currency.

Under the circumstances given in the example above, solar home systems were shown to be the least cost alternative compared to kerosene and batteries. Although a large part of the rural population spend less on kerosene and batteries than in this example, given the opportunity, many rural households may well consider the increased level of energy service, the better quality of light and other additional benefits of electricity well worth the higher price.

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5 Fieldstudy

5.1 Introduction

5.1.1 Objective

The objective of the fieldstudy was to assess the impacts and effectiveness of the solar home systems installed in the surveyed villages. The main objective was to do an evaluation of the technical performance, the villagers knowledge and opinion of the systems, how the mainte­nance and service works and if there was a difference between installations made by different companies. Another objective was to find out the impacts of the solar home system regarding indoor environment, health, children’s education and income generating activities and espe­cially the impacts for women. We also wanted to find out about the villagers’ ability to pay for the systems and how the solar home system has affected the use of other energy-sources,i.e. kerosene and dry-cell batteries.

5.1.2 Choice of sites

Up until last year only 13 of 72 districts were included in the government’s subsidy scheme for solar home systems. We chose to do the survey in two districts and two areas with differ­ent conditions. The villages chosen for the fieldstudy were Pulimarang of Tanahu district and Rampur of Palpa district. In early 1994 Pulimarang became the first village in Nepal to be supplied with solar home systems, through a donor-funded program. One year after the im­plementation of the solar program in Pulimarang a major survey was conducted by Dr. Schweizer-Ries. Pulimarang was chosen because it gave an opportunity to evaluate systems that were installed nearly five years ago and to do a follow-up on the survey made in 1995.

Rampur was chosen because of the different conditions compared to Pulimarang. In Rampur the systems are either privately purchased or subsidised through the governments subsidy program. Two different solar home system manufacturers have been responsible for the in­stallations in Rampur, which gave us an opportunity to compare the different companies. The survey in Rampur also included the surrounding villages.

5.1.3 Methodology

20 households in Pulimarang and 32 households in the Rampur area were included in the sur­vey with standardised interviews. A questionnaire (see Appendix D) was used as a checklist during the interviews, which were made together with an interpreter. The questionnaire in­cluded general questions about the household and energy-use, as well as questions about the technical performance of the solar home systems and their impacts on life. In Pulimarang, three households without SHS were also visited and interviewed and asked about their energy use and their opinions about solar electricity. In addition to this four women were separately interviewed and one followed during one day, to find out about the special impacts of the so­lar home system for women. The women were asked about their daily allocation of time and

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what impact the solar home system have on their lives. The fieldstudy was carried out be­tween October 15 and November 15, 1998 and 12 days were spent in each village.

5.1.4 Structure

The presentation of the fieldstudy starts with a description of Pulimarang village and the Pu- limarang SPY Home System Project and the work of Dr. Petra Schweizer-Ries. In the next section the results of the interviews in Pulimarang are presented. The second part of the pres­entation starts with a description of the Rampur area, followed by the results from the inter­views. The presentation ends with a summary and a comparison between the results in the different villages and a discussion of the results.

5.2 Pulimarang

5.2.1 Location of Pulimarang

Pulimarang village is a Gurung community located in Tanahu district of the Western Devel­opment Region of Nepal. The easiest way to reach Pulimarang is to go to Dumre and from Dumre go to a village called Pokharichap through a little town called Chadrawati. It is an easy bus ride to Dumre from Kathmandu on the Prithivi Highway and than you turn off the main road and for 16 km it is a pretty rough road to Chadrawati. From Chadrawati to Pokharichap it is a continues climb from approximately 600m up to 1225m for about 10 km. This part of the road is closed during the rainy season and even in the dry season it is a horrible road to travel on by bus. The best way to reach Pokharichap is either to use a 4WD or to simply walk as we did. From Pokharichap it is another hour of careful walking until Pulimarang is reached. The village of Pulimarang faces south west, which is ideal for solar power installations, and it is situated beautifully on the slope of a hill with a spectacular view of some parts of the Himala­yas and the Risti river down in the valley. Due to topography, the first sunlight reaches the village at 8 in the morning both in summer and winter while the sun sets at 6 pm in the sum­mer and 5 pm in the winter (WLG, 1995).

5.2.2 Energy availability

Grid-based electricityImplementation of hydropower is not considered technically feasible in the area. Although there are four rivers in the vicinity of the village, none of them have sufficient flow even in the wet season. When the Pulimarang SPY Home System Project was in the planning stage it was said that the national grid would not reach Pulimarang any time in the near future (Schweizer & Shrestha, 1995). Today, the end of 1998, Nepal Electricity Authority (NBA) could inform us that Pulimarang and nearby villages will be electrified within one year under the Seventh Power Project. At the same time a number of new systems, subsidised by the government, are being installed in and around Pulimarang. When we discussed the matter with the supplier, bank and inhabitants of Pulimarang, no one said to be aware of the electrifi­cation plans. The NBA, on the other hand, was not aware of the solar home system installa­tions.

Forest resourcesThe village is covered with dense forest and the local community forestry users’ group man­ages it. There has never been a shortage of fuelwood supply in the area and since the start of

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the forestry users group the forest has grown even stronger. The village forest committee de­cides what area of the forest that each year in Jan/Feb will be available for the community members to cut trees and for the rest of the year collect their fuelwood from. Each family is allowed to collect 50 baris/year with exceptions for larger families (In figure 5.1 Jessica is sitting besides two baris). To be a member of the community forestry users group includes jungle duty, which means that the members have to stand guard in the forest to protect it from intruders. The fuelwood supply is not a problem in Pulimarang and will not be for many years.

Figure 5.1. Jessica besides two baris.

5.2.3 The Pulimarang SPY Home System Project

The Pulimarang SPY Home System Project was formulated and implemented by the NGO Centre for Renewable Energy (CRE), the INGO Solar Electric Light Fund (SELF) and the Nepalese manufacturing company Solar Electricity Company (SEC). A solar committee was established in the village and in December 1993 a pilot system was installed at the house of the vice-chairman of the committee. Prior to this three of the villagers were given 40 hours of training on wiring procedures, measuring instruments, PV modules, components of the system and fault finding in the installed systems. SEC was providing the training. At the end of De­cember all wiring materials were sent to Pulimarang so that the 3 village technicians could carry out initial wiring at the houses that had decided to purchase a SHS. In January 1994 eight engineers and technicians from SEC began to install the SHSs. During the installation period each SHS owner was explained what PV systems can do and what it can not do. A user manual and a maintenance chart was explained and given to each user. The SEC technicians also held a meeting where they explained in detail about precautions needed for running the system. The installations were completed in February 1994. One month after the installations were completed SEC organised a first inspection visit to check that the systems were func­tioning properly and to install radio points at the houses that had required so. The SEC instal­lation team left necessary tools and other equipment so that the village technicians could per­form some necessary maintenance. In April 1994 CRE together with SEC organised an in­spection visit. At this point all malfunctioning systems were noted and complaints from own­ers were gathered. In May a SEC team went to Pulimarang to fix all the malfunctioning sys­tems. The main problem at this point was the fluorescent bulbs and a few battery problems.

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5.2.3.1 Financial scheme

The villagers of Pulimarang were informed during several meetings about SHSs and the pos­sibility to purchase partly subsidised systems. After this 46 families decided to purchase a SHS (Schweizer & Shrestha, 1995). There were two financial schemes for payments of the systems, full payment directly with about 50% subsidy or with instalments over a period of three years with about 25% subsidy. The full price for a system in Pulimarang was NRs 23.000. The villagers were offered either to pay NRs 12.250 for the system, if they could pay everything in one payment or they had to pay the higher price of 17.500 but the system could be paid off in 9 payments over 3 years (Schweizer & Shrestha, 1995). During the first phase of the Pulimarang project 46 installations in households were done and one installation in the community centre. The money that the villagers paid the systems with was put in a revolving fund that was established for buying new systems. After the completion of the first phase an­other 18 families applied for SHSs and these systems could be installed after utilising the re­volving fund. Until today 80 SHSs have been installed in and around Pulimarang. 14 of these were purchased privately and the rest through the Pulimarang SPY Home System Project.

S.2.3.2 The work of Dr. Petra Schweizer-Ries

One year after the completion of the Pulimarang SPY Home System Project Dr. Petra Schweizer-Ries of the Fraunhofer Institute for Solar Energy Systems conducted a study on the use and influence of the 46 SHSs in Pulimarang. All of the 46 households were visited and technical data on the batteries were taken. 21 families were deep-interviewed and in addition, 61 short questionnaires on the energy situation of families in the village were answered.

Results, technical aspectsIn Dr. Schweizer-Ries study of Pulimarang some problems with the proper function of the systems were recognised. The problems were mainly related to the use and maintenance of the batteries. At this point nobody really knew who was responsible for the batteries. This led to no regular checks of the water level in the batteries or regularly filling of distilled water in the battery. They also had problems with the installed plugs for radio and TV, these were to com­plicated and the owners didn’t know how to connect the appliances properly. Many of the fluorescent tubes had to be replaced during the first months (Schweizer & Shrestha, 1995).

Results, energy reductionThe study on reduction of conventional energy showed that the kerosene consumption was reduced by 82% and the use of dry-cell batteries had reduced with 15%. At this point the SHS users did not operate their radios and cassette recorders with solar power and they still used the same amount of batteries for torches (Schweizer, Shrestha & Sharma, 1995).Results, social aspectsThe interviewees were asked what the advantages of the SHS for the families were and the following were stated in the report “What can Solar electricity provide for Himalayan people? The case of Nepal” by Schweizer, Shrestha and Sharma:

1. Bright light (77%),2. Kerosene reduction (24%),3. Better for health & environment (19%),4. Upgrading education (19%),5. Easy to handle (14%),6. Generating income (14%).

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Some people also remarked that the outside light could protect the house against wild animals. 77% of the people mentioned the high increase of their living standard now that they have the opportunity to watch TV (Schweizer, Shrestha & Sharma, 1995). The question whether TV would reduce the time the children spent studying was also investigated and the conclusion was that it was only in the beginning the study time was reduced due to the novelty of TV. The parents were aware of the problem and after some time they could see the increase in time their children spent studying (Schweizer, Shrestha & Sharma, 1995).

24% of the families explicitly said how satisfied they were, even though in 40% of these cases the systems were not fully functioning. Only one person complained about the functioning of his system (Schweizer, Shrestha & Sharma, 1995).

The interviewed villagers stated that it was the women and children that benefited most from the SHS use. The children study and learn more and the women are able to work in the even­ing hours to earn some extra money (Schweizer & Shrestha, 1995).

5.3 Results of fieldstudy - Pulimarang

5.3.1 Presentation of the interviewees

23 interviews were made in Pulimarang. Three of the investigated households did not have solar electricity. The other 20 had SHS installed through the Pulimarang SPV Home System Project. Six of the interviewees were women and the rest were men. The ages of the inter­viewees varied from 19 years up to 73 years, with the average age of 46 years. The number of people per household varied from 4 to 11, with an average of 7,3 persons per household. Number and kind of animals belonging to the household were in average: 2,4 buffaloes, 0,6 cows, 1,6 oxen and 2,4 goats. The inhabitants of Pulimarang, mainly Gurungs, are farmers. Besides farming, many of them are serving or have served in the Nepalese, Indian or British army. Therefore the income of the villagers often is salary or pension from the army. The av­erage income of the interviewees was 3000 NRs/month. This should be compared to 4200 NRs/year, which is the national average income per household (WECS, 1995). The education level of the interviewed villagers is low and most of them have got their education within the army.

5.3.2 The systems

In Pulimarang, all the installations were made by the Solar Electricity Company. All the original systems consisted of a 35 Wp solar module from Siemens, a Japanese-made car- battery (12V 70Ah), a SEC charge controller, and three 8W fluorescent tube-lights. The charge controllers used do not protect the battery from overcharging. The households that so wished also got a point for connecting a radio or a black/white 12 V television. Since the original installation, some households have added additional lights, and one household has added two complete systems to the original one.

15 of the 20 interviewed households had a radio, but 9 of them did not have their radio con­nected to the solar system. The reason for this was in 5 cases that they did not have a radio­point and in 4 cases that the radio-point was broken. 2 households had a black and white tele­vision and the household with 3 systems had an inverter and colour television, along with a parabolic dish.

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5.3.3 Technical results

5.3.3.1 Technical performance

To evaluate the technical performance of the systems and to find out what kind of technical problems the villagers are faced with, we asked how many hours of the light the systems pro­vide and if they had had any problems with their battery, lights, charge controller or panel (PV module). The results are given in Appendix E, table E.b, and are summarised below in table 5.1.

Table 5.1. Technical problems with the systems.Have you had any problems with your bat­tery?

Have you needed to re­place any tubes?

Have you had any other problems with your lights?

Have you had any problems with your charge con­troller?

Have you had any problems with your panel?

‘yes’ answers 7 (35%) 20 (100%)(avg. 8 per household)

13 (65%) 4 (20%) 1 (5%)

Hours of light11 of the interviewees said they enjoyed 4-5 hours of light per day and 9 said about 2-3 hours. However the hours of light does not necessarily reflect the capacity of the system, since all interviewees seemed to be very economical in the way they use their lights, only having light on where they need it and always turning off the light when leaving a room. 13 of the inter­viewees (65%) said that there was no difference in the hours of light provided by the system now compared to when the system was new. The 7 interviewees that said there was a differ­ence in the hours of light provided, said the difference was approximately 1-2 hours. Ap­proximately half of the interviewees asked, claimed that they did not feel that the weather influenced the hours of light provided by the system. The other half said that a number of consecutive days without sunshine meant that the hours of light were reduced by 1-2 hours.

Battery1 of the interviewees (35%) answered ‘yes’ when asked if they had had any problems with their battries. One had had his battery replaced shortly after the installation. The other 6 said their battery wouldn’t charge fully, in one case since just a few days and in one case since about 15 months. 3 of the interviewees, that said the systems provided fewer hours of light compared to when the system was new, answered ‘no’ to the question if they had any prob­lems with their battery.

LightsThe number of tubes replaced by each household varied from 3 to 25, with an average of 8 tubes per household. In the original installation 3 lights were provided with each system, but 8 of the interviewed households had added one or more lights to the system (the household with 3 panels had 10 lights). The total number of lights in the 20 households were now 80, or in average 4 per household. The first sets of tubes provided with the system were manufactured in China. However, the quality of these tubes was not satisfactory and were gradually changed to Japanese (Hitatchi or Toki). Since the change to Japanese tubes the tubes are breaking much less frequently. The Japanese tubes are more expensive than the Chinese (125 rupees compared to 45 rupees) but everyone felt that the higher quality were well worth the higher

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price. 13 interviewees (65%) had repaired or replaced ballasts altogether 24 times at costs ranging from free to 100 rupees.

Charge Controller3 interviewees said that they had had minor problems with the charge controller and in all cases they had been repaired locally. In addition to this one person said that if only one light was on, the charge controller indicated low charge, but not when all lights were on.

PanelOne interviewee said he had changed a fuse in the panel. The remaining 19 had had no prob­lems with the panel.

S.3.3.2 Maintenance

To find out about the villagers knowledge of needed maintenance, we asked how often they check the water-level in the battery, where they get distilled water, if they clean their panel and if they have any protection against hail. The results are available in table E.c, Appendix E, and are summarised below in table 5.2.

Table 5.2. Maintenance.

How often do you check the water-level in your battery?

Do you clean your panel?

Do you have and use hail-protection?

More than once every 3 months

Every 3 to 6 months: Yes No Yes No

20 (100%) 0 18 (90%) 2 (10%) 13(65%) 7 (35%)

Everyone checked the water-level in the batteries regularly, at least once every three months. 9 interviewees said they checked it more than once a month. It is not possible to buy distilled water in Pulimarang and 9 said they bought it in Kathmandu, while 11 said Dumre. Almost everyone cleaned their panel regularly. Only two said they did not, because they were ‘too old’ and the panel was ‘too high up’. 13 interviewees (65%) had made covers of bamboo to protect the panel against hail. 4 interviewees did not have any protection and 4 said that they had protection but did not use it because the hail didn’t damage the panel.

S.3.3.3 Service and repairs

To find out how the service and repairs of the system work we asked who they contact when they have problems with their system and how many days it takes to get components repaired or replaced. The results are given in Appendix E, table E.c and are summarised in table 5.3.

Table 5.3. Time to repair or replace.

Answers given

How long does it take to get components repaired or replaced?Less than 3 days Less than one week More than one week7 (35%) 8 (40%) 5 (25%)

All of the interviewees said that they contact someone in the solar committee when they have problems with their system. On the question ‘How long does it take to get components re­paired or replaced?’ the answers varied between 1 day and 3 months, depending on if the problem could be dealt with locally or not. If it is a broken tube or ballast that the committee

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has in stock it takes only one or a few days. If the component is not in stock, and needs to be brought in from Kathmandu, or if the component needs to be repaired in Kathmandu it can take up to 3 months. 7 (35%) interviewees answered that the time for repair was less than 3 days and 8 (40%) answered less than one week. 3 interviewees answered up to one month while 2 said up to 3 months.

5.3.4 Replacement of battery

The batteries will need to be replaced sometime in the near future, and the interviewees were asked what they will do with the old battery when they buy a new one. Many of the inter­viewees had given it some thought and did not want to ‘throw it away in the jungle’. Almost all of the interviewees said they would contact either the solar committee or SEC in Kath­mandu. One interviewee said he would keep it and one said he would try to sell it.

5.3.5 Knowledge about costs and warranties

As a Solar Home System often is quite a big investment for the villager we wanted to find out about their knowledge about what new components cost, how long the warranty time is for the different components and how long they think the panel will last. The results are given in table E.d in Appendix E. The given answers, along with the ‘correct’ answers, are summa­rised below in table 5.4.

Table 5.4. Knowledge about costs and warranty.

‘Don’tknow’

Averageanswer

‘Correct’answer

Comment

Batterycost

8 (40%) NRs 5040 NRs 4500 The given answers ranged between 4000 and 7000

Batterywarranty

8 (40%) 3,6 years 1 year 8 answers varied between 1 year and 5 years. One person answered 30 years and one per­son answered that he would be given a dis­count on a new battery within 10 years.

ChargecontrollerCost

16 (80%) NRs 2750 NRs 2500 The given answered varied between 2000 and 4000 rupees.

Chargecontrollerwarranty

15 (75%) 6 years 1 year 2 answered ‘no warranty’ and the remaining three answers were 3, 7 and 20 years.

Ballastwarranty

17 (85%) 0 years 1 year The three given answers were ‘no warranty’.

Panel war­ranty

12 (60%) 14 years 10 years One person answered ‘no warranty’, 3 an­swered 10 years and 4 answered 20 years.

Expected panel life

8(40%) 15 years 20 years The answers given ranged between 10 and 30 years.

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5.3.6 SHS effect on the use of kerosene and dry-cell batteries

The interviewees were asked about their use of kerosene and dry-cell batteries before and after the installation of the solar home systems. The given answers and the reduction is given in table 5.5.

Table 5.5. SHS effect on the use of kerosene and dry-cell batteries.

Before SHS After SHS ReductionKerosene(litres/month)

2,4 0,6 1,8 (75%)

Dry-cell batteries (pieces/month)

4,7 3,6 1,1 (23%)

KeroseneBefore the installations of SHS the consumption of kerosene varied between 1,5 and 4,2 litres per month with an average of 2,4 litres per month. After the installation the consumption var­ied between 0,25 and 1 litre per month, with an average of 0,6 litres per month. For the aver­age household this means a reduction of 1,8 litres per month or 75%. On a yearly basis the reduction for the average household amounts to 21,6 litres. When calculating the average, two households are not included. One because the household cooks with kerosene and could not say how much the SHS had effected the use of kerosene and one because they had two pres­sure lanterns and used a considerable amount more kerosene than other households. If this household is included, the average before and after installation goes up to 2,70 and 0,8 li­tres/month respectively, a reduction of 70%.

Dry-cell batteriesBefore the installation of the SHS the consumption of dry-cell batteries varied between 3 and 10 pieces per month, with an average of 4,7 batteries per month. After the installation the con­sumption varied between 2 and 8 with an average of 3,6 batteries per month. Half of the inter­viewees said the SHS had not effected their use of dry-cell batteries. The average reduction was 1,1 batteries per month, or 23%. Per year the reduction amounts to 13,2 batteries.

5.3.7 Socio-economic results

5.3.7.1 Reasons for purchase

The interviewees were asked why they had decided to buy a SHS. The main reason for buying a SHS was to get good quality of light; all but one of the interviewees gave this as an answer. The person that didn’t answer to get good light had bought his system because everyone else had decided to buy SHSs. 5 persons answered that the improvement of the indoor environ­ment, to get rid of smoke and soot, was also one of the reasons for buying. 5 answered that electricity would make their children’s study easier and 3 answered that the household work would be easier to do if they had light. The answers are summarised in table 5.6.

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Table 5.6. Why did you decide to get a SHS.

To get better quality of light

To get im­proved indoor environment

To make your children’s study easier

To makehouseworkeasier

Because eve­rybody else have

Answers in % 89% 55% 55% 33% 11%

In January 1999 it is five years ago since the installations in Pulimarang were completed. Up to now all but one of the interviewees stated that they were satisfied with their SHS and thought that their expectations had been met. All of them answered that they had recom­mended others to purchase a SHS. Only two persons said that they had found any disadvan­tages with the SHS. One thought there had been to many problems with the lights, but he was still overall satisfied with the system. The only one not satisfied thought that she had paid a lot of money for something that now doesn’t work very well. Many thought that their family life had changed a lot since they got electricity. Among the answers we got, these were most frequently stated: the family is happier now, before there was a fire risk every day because of the kerosene lamps, the house is cleaner now, household work is easier and the children study more.

S.3.7.2 Impacts of solar home systems

We asked if the lights are used for any special purposes, they answered as follows without being explicitly prompted:

1. 90% or 18 persons answered that it is used for children’s studying2. 65% or 13 answered that it is used for household work3. 10% or 2 for income generating activities (tailor and shawl-making)4. 5% or 1 person said that an outside light helps him to find his buffaloes if they cut loose in

nighttime.

65% said that the light was used for household work and every family we interviewed had one light in the kitchen.

The interviewees were also asked if the solar light has effected the time their children study and if yes, how many hours/day. Of the interviewed villagers that have children in school 100% answered that their children study one or two hours more now than they did before.

We asked if the villagers gather in houses with solar home systems. Even though almost every family have solar electricity 67% answered that they gather in houses with SHS. They did not have these gatherings before and it is mainly because they want to watch TV they go to other houses. Half of the families said that it is the children that go and watch TV. The most popu­lar programs to watch are news, children shows and nepali films. When electrifying a village it always means that TV will be brought in to villagers' lives and there is a risk that the chil­dren study less because of the opportunity to watch TV. This negative effect is absolutely not a fact in Pulimarang. They say that TV is a positive thing for the village because it keeps them informed about what is happening in their country and in the world, and it keeps many of the young men from migrating to the cities. Before they used to arrange literacy classes for the women in the community, but now it is maximum twice every year. There are a few women in Pulimarang that earns money on handicraft and these women sometimes get together and make their bags.

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The interviewees were also asked if the solar home system had affected their religious activi­ties or if any other cultural barriers towards solar electricity exists. ‘No’ was the common re­sponse to this.

The use of kerosene lamps inside a house leads to bad indoor environment due to smoke and soot. The interviewees were asked if they had noticed any difference in the indoor environ­ment since the SHS was installed. If anyone in their family has respiratory problems and if they had noticed any difference since the SHS was installed. And finally if anyone in the family had any form of eye problems and the effect of solar. Answers as follows in table 5.7.

Table 5.7. Change in indoor environment, respiratory- and eye problems.

Have you noticed any change in the indoor environment since the SHS was installedSignificant Some None

Answers in % 78,6 14,3 7,1

Does anyone in your family have respiratory problems

Has there been any change since the SHS was installed

Yes No Significant Some NoneAnswers in % 33,3 66,7 33,3 66,7 0

Does anyone in your family have eye problems

Has there been any change since the SHS was installed

Yes No Significant Some NoneAnswers in % 33,3 66,7 33,3 33,3 33,3

To get an idea of how the households value the access to electricity compared to other things, the households were asked to rank the following: fuelwood supply; availability of water; edu­cation; electricity; and agricultural production. They were asked to rank the alternatives be­tween 1 and 5 with 5 being highest rank. Table 5.8 shows the number of 5:s, 4:s etc given by the interviewees for each alternative.

Table 5.8. Households ranking of different alternatives.

Fuelwoodsupply

Availabilty of water

Educationschool

Electricity Agriculturalproduction

5:s 1 5:s2 5:s 8 5:s 0 5:s 64:s 0 4:s 6 4:s 3 4:s 3 4:s 53:s2 3:s 5 3:s 2 3:s 3 3:s 52:s 6 2:s3 2:s 1 2:s 7 2:s 01 :s 8 l:s 1 l:s 3 l:s 4 l:s 1

1. Agricultural production 3.9 points2. Education 3.7 points3. Availability of water 3.3 points4. Electricity 2.3 points5. Fuelwood supply 1.8 points

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The result shows that a sufficient agricultural production level is the most important thing to the villagers, although it is worth noting that education got the highest amount of rank ‘5’.

5.3.7.3 Income generating activities

Some of the women in Pulimarang have always worked with handicraft. They weave bags in various sizes and shawls. When they got solar electricity it gave them the opportunity to work with their handicraft more often. Before they could only make bags in between of their household chores during the day, now they have the possibility to work with handicraft in the evenings. It is only about ten women that work with handicraft and it is only one of them that has made it in to a living. When she got the opportunity to weave shawls all day her family agreed to let her do that and today she supports the family. They do not keep animals anymore and both her and the family’s workload has decreased because of this. Solar electricity has made a huge difference for their life style and their happiness. To justify subsidies for SHSs the government would like to see an increase in income generating activities, small cottage industries that can run during the days as well as the evenings. This can effect the workload of the women negatively. After their normal work they have to spend their evenings trying to earn more money, which may be a heavy burden. The women in Pulimarang stated that this is not the case for them. They see their extra work partly as a social activity.

5.3.7.4 Study of three households without solar

We interviewed three persons, one woman and two men, that do not have SHSs. None of them could afford a SHS when the rest of the village decided to buy, but all of them want to have. The main obstacle for affording a system is the high down payment, which none of them could afford. However, one of the interviewed stated that he would have no problems with the monthly payments if he could get a reduced down payment. He also told us that he had no idea where to get a SHS and whom he should contact. The woman and one of the men thought that if they had good light they would be able to work with handicraft and tailoring in evening time and earn enough money to afford a SHS. The reasons for wanting electricity were: the children’s education, household work would be easier and one person wanted light for his work as a tailor.

5.3.7.5 The impact of electricity on women’s lives

Five women were interviewed about their daily chores and allocation of time, their opinion of solar electricity and if having a SHS has affected their lives in any way. Two of the women's daily schedule can be seen in Appendix F. None of the women think that electricity have af­fected their daily lives. However, they do feel that light has given them a bit more freedom to choose when to do different things and that household work is a little easier now when they can clean the house and utensils and prepare food in light. The five women all agree that having access to electricity is very important for their children's education. All of the inter­viewees also commented on the relief of not being forced to use kerosene lamps because of the fire risk. They all say that kerosene lamps are dangerous, especially for the children, and now they don't have to worry anymore.

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5.4 Rampur

5.4.1 Location and description of the village

Rampur is located in Palpa district of the Western Development Region of Nepal. To be able to reach Rampur you have to go to the little town Ramdi, just north of Tansen. Ramdi can be reached either by the Mahendra Highway from Kathmandu to Butwal and from Butwal to Ramdi, or the Prithivi Highway from Kathmandu to Pokhara and from Pokhara go towards Tansen until Ramdi is reached. In Ramdi there is a turn off the main road and after approxi­mately 15 km you reach the small town of Aryanbhanjyang. From Aryanbhanjyang it is an­other 50 km before you reach Rampur. The road between Aryanbhanjyang and Rampur is very rough and it is recommendable to use a 4WD for this drive. Rampur is situated in a val­ley close to the Kali Gandaki River. There are no high hills in the surroundings that could shadow the village, so it is a good place for solar applications. Our survey was conducted in Rampur village as well as the nearby villages Kritipur, Tandi, Rajghar, Gandaki Dik and Kisanbari. All together we interviewed 32 SHS owners and in this area there are totally 40 systems installed.

Figure 5.3. Rampur and surrounding villages.

From Rampur it was a 2h walk to Tandi through the forest. In Tandi we did 3 interviews and from Tandi it was a 40-min walk to Kritipur were we did another 3 interviews. It took about one hour to walk to both Rajghar and Gandaki Dik where we did 5 respectively 2 interviews. Kisanbari was just a 20-min walk and there we did 3 interviews. The rest of the interviews (16) were done in Rampur.

5.4.2 Energy availability

Electricity through national gridDuring the eighth fifth year plan (1992-1997) the 144 MW power generating project of the Kali Gandaki River was decided. The power generated from the project will be evacuated to the central grid through new transmission lines to Pokhara and Butwal. A second phase of the Kali Gandaki project adding 660 MW is also proposed and planned (NBA, 1998). Following the Kali Gandaki project Nepal Electricity Authority (NEA) has recognised the need to ex­pand the national grid system to both rural and urban areas. Under NEA’s Seventh Power

42

Project, which has a target to electrify 25 districts, parts of Palpa district will be electrified within one year. The distribution lines are not planned to reach Rampur during this time, but villages just 20 km away will have electricity. Since the power distribution in this area will be strengthened through the Kali Gandaki projects it is assumable that Rampur area will be elec­trified in near future.

Forest resourcesRampur is located in a valley and on the surrounding hills there are a few forests. There is a distinct shortage of fuelwood due to deforestation. The villagers says that the local forest is now regaining its strength due to the efforts of the local ranger’s office and the start of the community forestry users’ group. The ranger in the area decides each year what part of the forest will be available for the community members to cut trees in during one month and for the rest of the year collect their fuelwood from. To be a member in the community forestry users group includes jungle duty, which means that the members have to stand guard in the forest to protect it from intruders. The fuelwood supply is a problem in Rampur.

5.5 Results of fieldstudy - Rampur

5.5.1 Presentation of the interviewees

32 interviews were made in and around Rampur. 30 of the interviewees were men and two women. The ages of the interviewees varied from 20 years up to 68 years, with the average age of 38 years. 11 of the interviewees had college education and 10 had SLC pass (school leaving certificate). 6 had no education at all and the rest had been to school but not reached SLC pass. The number of people per household varied from 2 to 23, with an average of 7,3 persons per household. Number and kind of animals belonging to the household were in aver­age: 3 buffaloes, 2 cows, 1.7 ox and 4 goats. 11 households did not have any animals and one household had 9 donkeys and nothing else. In the Rampur area most of the people are farm­ers, but many of the wealthier people have a side business. Of the interviewees 14 own a small shop, 3 have small restaurants, 3 have pharmacies and 1 owns a rice mill. The average income of the interviewees was 5800 NRs/month. As for Pulimarang this indicates that the interviewees belong to the richer part of the community.

5.5.2 The systems

Out of the 32 households visited, 15 had systems installed by Lotus Energy and 16 had sys­tems from SEC. The SEC-systems were provided and installed by Nanda Battery, a SEC dealer located in Butwal, 70 kms from Rampur. Two of the SEC customers had bought their systems second hand, from friends in the village, and installed them themselves. One had pur­chased his solar panel directly from Siemens, used a local-made car-battery and used lights, switches etc. from SEC and did not use a charge controller. 23 systems were installed in Oc­tober 97 and 8 were installed between January and September 98. The privately assembled system, was installed in November 96.

All panels were Siemens 36 Wp, except for the privately assembled system, which had a 75 Wp panel, also from Siemens. The systems from Lotus included Lotus Energy’s deep-cycle (12 V 70 Ah) battery, 4 compact fluorescent 9W lightbulbs from Phillips, a Lotus Energy charge controller, and a point for connection of radio or black and white 12V television. The systems from SEC included Japanese-made car batteries (12V 70 Ah), 4 fluorescent 8W tubes

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(Hitatchi/Toki), a SEC charge controller, and a point for connection of a radio or black and white 12V television.

25 households had a radio connected to the solar system. 2 interviewees used to have a radio connected, but now the point was broken. 7 households had black and white televisions con­nected and one had an inverter for a color television. One of the second-hand systems had only two lights, while the 75 Wp system had 8 lights.

5.5.3 Financing of the system

All the systems in the Rampur area were either purchased privately or bought within the Nep­alese government subsidy scheme for solar home systems. The subsidy scheme is handled by the Agriculture Development Bank / Nepal. There is a local ADB/N office in Rampur, which partly deals with SHSs. The local ADB/N office is assigned 15 VDCs, of these 5 were part of the subsidy scheme for SHSs in fiscal year 97/98. During the last fiscal year the subsidy quota for the 5 VDCs was 30 systems. The demand for subsidy for SHS is very high in Rampur and the assigned quota was finished immediately. The local bank office said that the down pay­ment is NRs 5000 and the interest rate on the loan is 15%. 12 of the 32 investigated systems were purchased privately, 9 were systems from Lotus Energy and 3 were SEC systems. For the investigated systems that were bought within the subsidy scheme the average down pay­ment was NRs 5535, average size of payment was 254.5 NRs/month and the average interest rate on the loan from ADB was 17.2%. On the question “what is the interest rate on your loan” the answers varied from 16% up to 19%. No one answered 15%, which was the answer the local bank gave us.

12 of the interviewees said that they would not or could not buy the system without subsidy. 20 answered that they would buy the system without subsidy, of these 20, 12 were purchased privately. Altogether 40% answered that they could afford the SHS without the subsidy (ex­cluding the private SHS). All of the interviewees answered that buying a SHS had not af­fected their other purchases.

5.5.4 Technical results

5.5.4.1 Technical Performance

To evaluate the technical performance of the systems and find out what kind of technical problems the villagers are faced with, we asked how many hours of light the systems provide and if they had had any problems with their battery, lights, charge controller or panel. The results are given in Appendix E, table E.f, and are summarised below in table 5.9

Table 5.9. Technical problems with the systems.

Have you had any problems with your battery?

Have you needed to replace any tubes?

Have you had any other problems with your lights?

Have you had any problems with your charge con­troller?

Have you had any problems with your panel?

‘yes’ answers 2(6%) 11 (34%) 3(9%) 8 (26%) 0 (0%)

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Hours of lightMost of the interviewees said that they enjoyed between 3 and 6 hours of light per day, but that they only had the lights on where they need it and always turned out the light when leav­ing a room. Some interviewees said that they had the lights on for up to 10 hours and 3 of the shop owners said that they left one light on all night to keep thieves and rats away. Two inter­viewees said that the system provided less light (about lA to 1 hour) compared to when the system was new. One of them (interviewee no 13), did not have a functioning charge control­ler, and the lights were connected directly to the battery. During the interview with the other person that complained about getting less light (interviewee no 23), it turned out that he had never checked the water level in his battery and did not know that the battery sometimes needs to be topped up with distilled water.

Battery30 interviewees (94%) said that they had had no problems with the battery. Two interviewees had had their batteries replaced at no cost. One of them (interviewee no 13) had had the bat­tery replaced 2 months after the original installation but said it still did not work satisfactory. One of the persons (interviewee no 23) said that he had had no problems, did however com­plain about getting less light lately.

Lights21 interviewees (66%) had not yet replaced any tubes/bulbs. The remaining 11 had replaced altogether 19 tubes. The 32 households have altogether 130 lights. On the question ‘Have you had any other problems with your lights?’ 3 interviewees (9%) answered ‘yes’. One inter­viewee said that one of his lights worked when only that one was on, but when he turned on the other lights, this light was turned off. In the other two cases it was problems with the cov­ers, one complaining that insects were getting inside the covers of the lights when they were mounted horizontally and one having a broken cover. No one had had any problems with the ballasts.

Charge ControllerWhen asked if they had had any problems with the charge controller, 8 interviewees (26%) answered ‘yes’. In three cases only the fuses had needed to be replaced, and in one case it was the main on/off switch that was not working. In two cases the charge controllers had been replaced and were now working. Two interviewees (interviewee no 11 and 13) said their charge controllers had been replaced or repaired several times but were still not working properly. In both these cases the lights were now connected directly to the battery.

PanelNo one had had any problems with their panels.

S.5.4.2 Maintenance

To find out about the villagers knowledge of needed maintenance, we asked how often they check the water-level in the battery, where they get distilled water, if they clean their panel and if they have protection against hail. The results are available in table E.g, Appendix E, and are summarised below in table 5.10.

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Table 5.10. Questions about maintenance.

How often do you check the water-level in your battery?

Do you clean your panel?

Do you have hail- protection?

More than once every 3 months

Less than once every 3 months

Never Yes No Yes No

27 (85%) 3(9%) 2(6%) 14 (44%) 18 (56%) 1(3%) 31 (97%)

Water-Level27 interviewees said that they check the water-level from ‘once a week' to ‘once every three months’. Two answered twice a year and one answered ‘once a year’. Two answered ‘never’. One of these persons (interviewee no 23) complained about getting fewer hours of light now compared to when the system was new, and did not know that he might need to fill water in the battery.

Distilled WaterWhen asked where they get the distilled water, 9 people answered ‘in Rampur’ and 14 people answered ‘in Butwal’. 4 answered ‘from the company’. Two people answered that they sold distilled water in their shop. One interviewee did not know where he could get it and two people answered they make or will make their own.

Cleaning the panel14 interviewees (44%) said they cleaned their panel regularly. Some of them said the com­pany had told them and some said it was their own idea. Out of the 18 that did not clean their panel, some said that the company had told them to clean it but they forgot or didn’t think it was necessary but most said they had never heard anything about cleaning.

Protection against hailOnly one person in the village had made a cover to protect the panel against hail, and he said it was his own idea. After being asked, several other interviewees became interested in getting some kind of protection.

S.5.4.3 Service and repairs

To find out how the service of the systems work we asked who they contact when they have problems with their system and how many days it takes to get components repaired or re­placed. The results are available in table E.g. in appendix E and are summarised below in ta­ble 5.11.

Table 5.11. Contact person and days to repair/replace.

Who do you contact when you have problems with your system?

Days to repair

Village-technician

Company Don’tknow

1 to 3 days 4 to 7 days More than1 week

Don’tknow1

13 (41%) 15 (47%) 4 (12%) 2 (12,5%)2 10 (62,5%)2 4 (25%)2 1616 interviewees had not yet had any parts repaired or replaced

2 Per cent of the 16 that had had parts replaced or repaired

When asked whom they contact when something breaks or when they have problems with their systems, 13 interviewees answered that they contact their company’s village technician.

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15 answered that they contact the company directly either by telephone or in some cases sim­ply by waiting until someone from the company happen to come to the village. 4 interviewees answered that they did not know whom to contact.

On the question ‘How many days does it take to get components repaired or replaced?’ the answers naturally varies a great deal depending on the nature of the problem, if it can be dealt with locally or if the component needs to be repaired in or replaced from Kathmandu or But- wal. 2 interviewees answered less than three days and 10 interviewees answered between 4 and 7 days. 4 answered more than 1 week and two of these said it could take one or two months. The average answer given was approximately 1 week. 16 interviewees had not yet had any parts repaired or replaced. On the question how long they thought it would take the answers varied between 1 and 7 days, with an average of 4 days.

5.5.5 Knowledge about costs and warranties

As a Solar home system often is quite a big investment for the villager we wanted to find out about their knowledge about what new components cost, how long the warranty time is and how long they think the components will last. The results are given in table E.h. in Appendix E. The average answers given by the different companies’ customers, along with ‘correct’ answers, are given in table 5.12.

Table 5.12. Knowledge about costs, warranty and life of components.

‘Don’tknow’

Lotus SEC CommentAverageanswer

‘Correct’answer

Averageanswer

‘Correct’answer

Battery cost (Nrs)

4(13%)

7035 6500 4685 4500 The given answers varied from 2500 to 12000.

Batterywarranty(years)

6(19%)

2,4 2 2,9 1 The given answers varied from 1 to 10 years.

Expected battery life (years)

6(19%)

3,3 Over 5 4,3 3-4 The given answers varied from 1 to 9 years.

Charge controller Cost (Nrs)

17(53%)

1750 2500 1605 2500 The given answers varied from 1000 to 4000.

Chargecontrollerwarranty(years)

7(22%)

2,2 2 1,3 1 The given answers varied from 1 to 3 years.

Ballastwarrant(years)

7(22%)

1 1 0,8 1 The given answers varied from no warranty to 3 years.

Panel war­ranty (years)

6(16%)

10 10 10 10 All the answers given were 10 years, except for one ‘8 years’ and one ‘1 year’.

Expected panel life (years)

7(22%)

11,5 20 12,3 20 The given answers varied from 4 to 25 years.

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5.5.6 Replacement of batteries

Sooner or later the batteries will need to be replaced. We asked the villagers what they will do with the old battery when they buy a new one. 16 (50%) answered that they would ask the solar company and 7 (22%) said they didn’t know. 7 answered ‘throw away’, one answered that he would sell it and one that he would keep it.

5.5.7 SHS effect on the use of kerosene and dry-cell batteries

To estimate the effect the installations of the solar home systems have had on the use of kero­sene and dry-cell batteries, the interviewees were asked about their use before and after the installations. The average use and reduction is given in table 5.13.

Table 5.13. SHS effect on the use of kerosene and dry-cell batteries.

Before SHS After SHS ReductionKerosene(litres/month)

6,1 0,7 5,4 (88%)

Dry-cell batteries (pieces/month)

9,6 4,2 5,4 (56%)

KeroseneOut of the 32 households interviewed, 9 used both fiielwood and kerosene for cooking and/or had recently started cooking with biogas or cylinder-gas. These households could not say how much their solar home systems had effected their use of kerosene and were therefore not in­cluded when calculating the average kerosene use before and after the installations. Among the remaining 23 households the kerosene consumption before the installation of SHS varied between 1 and 15 litres per month, with an average of 6,1 litres. After the installation of SHS, 13 households answered that they use no kerosene and for the others the consumption varied between 1 and 3 litres per month, with a total average consumption of 0,7 litres per month. For the average household this means a reduction in kerosene use with 5,4 litres per month or 88%. On a yearly basis the kerosene consumption had dropped with 64,8 litres.

Dry-cell batteriesThe use of dry-cell batteries before SHS varied between 2 and 24 per month, with an average of 9,6 batteries per month. After installation the use varied from 2 to 12 per month, with an average of 4,2 batteries per month. For the average household this means a reduction of 5,4 batteries per month or 56 %. On a yearly basis, the average reduction was 65 batteries

5.5.8 Socio-economic results

5.5.8.1 Reasons for purchase

The interviewed persons were asked why they had decided to buy a SHS. The main reason for purchasing a SHS was to get good quality of light, which all of the interviewees gave as an answer. 5 persons answered that the improvement of the indoor environment, to get rid of smoke and soot, also was one of the reasons for purchase. 6 answered that electricity would make their children’s study easier and 4 answered that the housework would be easier to do if they had light. 3 persons bought SHS to be able to have light in their business and increase their income by being able to work in the evenings. 3 bought solar system to be able to oper­

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ate electric appliances: TV and radio. 1 person wanted to have light outside so he easily could find his buffaloes in night time if they cut loose. The answers are summarised in table 5.14.

Table 5.14. Why did you decide to get a SHS.

To get bet­ter quality of light

To get im­proved in­door envi­ronment

To make your chil­dren’s study easier

To makehouseworkeasier

To get in­creased income

To operateelectricappliances

Looking for buffaloes

100% 15,6% 18,7% 12,5% 9,4% 9,4% 3%

One year after most of the installations were completed 100% of the interviewees stated that they were satisfied with their SHS and thought that their expectations had been met. All of them also answered that they would recommend others to purchase a SHS. None of the inter­viewees had found any disadvantages with the SHS, but two were not pleased with the service from the solar company.

5.5.S.2 Impacts of solar home systems

We asked if the lights are used for any special purposes, they answered as follows without being explicitly prompted:

1. 65,6% or 21 persons answered that it is used for household work2. 59,4% or 19 for children’s studying3. 15,6% or 5 for income generating activities (f ex light in their shop)4. 34,4% or 11 use one of the lights to make their work easier (f ex light in shop)5. 3,1% or 1 person said that an outside light will protect his shop from thieves in night time6. 3,1% or 1 interviewee kept one light on all night to keep the rats away

65,6% said that the light was used for household work and every family but one had one light placed in the kitchen.

The interviewees were also asked if the solar light has effected the time their children study and if yes, how many hours per day. The result is shown in table 5.15.

Table 5.15. The effect of electric light on children’s studying.

Has solar light effected the time your children study/do homeworkNo1 0.5 h 1 h 2 h > 2 h

No. of answers 10 3 12 6 1Answers in % 31,25 9,4 37,5 18,75 3,1All the interviewees that answered no have no children or no children in school.

All of the interviewees with children in school answered that their children study more now, 86% spends one hour or more on schoolwork every day. Of the people that answered no on the question, if the children study more, two have young children and both of them think good light will have a big impact on their children’s education. One of the interviewees has grown up children and didn’t answer the question. The other seven have no children yet, but are con­vinced that good light will effect their children’s education.

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We also asked if people gather in houses with solar home systems and if having light has af­fected the time they go to bed. Only seven persons answered that they gather in houses with solar. 4 said that they like to meet in the evenings to sit around and talk and discuss different things. They had these types of gatherings before, but with the difference now that it often is later in the evenings. One of these persons also answered that children sometimes get together to study in a home with electricity. The other three persons either go to a friend’s or a rela­tive’s house to watch TV or have people coming to their house to watch TV. Since they only watch TV during the gatherings they did not have them before. The interviewees that an­swered that they now stay up at least one hour longer than before either has a TV, go to others house to watch TV or just gather in evening time to sit and discuss and talk. Some of the younger interviewees pointed out that the opportunity they have to watch TV have meant much to them and that they before had plans to leave their village but not anymore.

The interviewees were also asked if the solar home system had affected their religious activi­ties or if any other cultural barrier towards solar electricity exists. ‘No’ was the common re­sponse to this.

When installing a SHS it usually effects the use of kerosene in a positive way, because they don’t use kerosene lamps anymore. The interviewees were asked if they had noticed any dif­ference in indoor environment since the SHS was installed. If anyone in their family has res­piratory problems and if they had noticed any difference since the SHS was installed. And finally if anyone in the family had any form of eye problems and the effect of solar. Answers as follows in table 5.16.

Table 5.16. Change in indoor environment, respiratory- and eye problems.

Have you noticed any change in the indoor environment since the SHS was installedSignificant Some None

No. of answers 13 9 10Answers in % 40,6 28,1 31,3

Does anyone in your family have respiratory problems

Has there been any change since the SHS was installed

Yes No Significant Some NoneNo. of answers 2 30 1 1Answers in % 6,3 93,7 3,1 3,1

Does anyone in your family have eye problems

Has there been any change since the SHS was installed

Yes No Significant Some NoneAnswers in % 0 100

To get an idea of how the villagers value the access to electricity in relation to other things, the interviewees were asked to rank the following: fuelwood supply; availability of water; education; electricity; and agricultural production. They were asked to rank the alternatives between 1 and 5 with 5 being the highest rank. The numbers of 5:s, 4:s etc given by the inter­viewees are shown in table 5.17.

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Table 5.17. Households ranking of different alternatives.

Fuelwoodsupply

Availability of water

Education/School

Electricity Agriculturalproduction

5:s 0 5:s 10 5:sl8 5:s 1 5:s34:s 1 4:s 7 4:s8 4:s 7 4:s 103:s2 3:s 10 3:s 4 3:s 10 3:s 62:s 6 2:s 4 2:s2 2:s7 2:sl2l:s 23 l:s 1 l:s 0 l:s 7 l:s 1

1. Education 4,3 points2. Availability of water 3,6 points3. Agricultural production 3,1 points4. Electricity 2,6 points5. Fuelwood supply 1,4 points

When asked to do the same for transport/roads; electricity; school; hospital; and improved cooking stove the results were as shown in table 5.18:

Table 5.18. Ranking.

Transport/roads

Electricity School Hospital Improved cook stove

5:s 6 5:s 4 5:s 9 5:s 6 5:s 74:s 9 4:s 5 4:s 5 4:s 11 4:s 23:s 5 3:s 7 3:s 10 3:s8 3:s 32:s 10 2:s8 2:s 6 2:s 4 2:s 4l:s 2 1 :s 8 l:s 2 l:s 3 l:s 17

1. School 3,4 points2. Hospital 3,4 points3. Transport/roads 3,0 points4. Electricity 2,7 points5. Improved cook stove 2,4 points

The results show that the villagers consider education and good schools to be the most im­portant issue. Energy, both in the form of electricity and fuelwood were given the lowest ranks.

S.5.8.3 Income generating activities

16 (50%) of the interviewees have a shop in Rampur area, 3 (9,4%) have restaurants and 1 (3,1%) has a rice mill. 6 of the shop owners do not have a light in their shop because their houses and shops are located differently and they have the SHS installed in their home. 14 (43,8%) of the interviewees have the opportunity to earn more money on their business due to longer opening hours. Still it was only 3 (9,4%) persons that answered that one of the reasons for buying SHS was to increase their income. These 3 persons claimed to have increased their income with an average of 4200 NRs/month, 2 more persons have increased their income due to electricity but they did not have the intention from the beginning. It is interesting to notice that only 5 persons out of 14 that use the opportunity they have to earn more money.

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5.6 Summary of fieldstudy

5.6.1 Summary of results in Pulimarang

Technical PerformanceAfter nearly 5 years of operation 19 out of 20 systems were working satisfactorily. However 6 interviewees said that their batteries did not charge fully anymore, and that the systems now provided fewer hours of light per day compared to when the system was new. On average, the interviewees said that they enjoyed 3-4 hours of light per day. In the beginning Chinese-made tube-lights were used that broke frequently, but after shifting to Japanese tubes this is no longer a big problem. Everyone felt that the better quality was well worth the higher price. On average two tubes had been replaced for every light and less than 1 ballast for every four lights. 3 interviewees said that they had had some problems with the charge controllers, but they had been repaired locally.

Maintenance and serviceAll the villagers seemed very aware of the need for some maintenance and everyone checked the water-level in the battery regularly. All but two cleaned their panel regularly and most of the villagers had made covers out of bamboo to protect the panel against hail.

When the villagers have any problems with their system, they contact the solar committee. The solar committee has a small stock of tubes and ballasts, and most problems can be dealt with relatively quickly (within one week). But when something needs to be repaired in Kath­mandu, or when a component is out of stock, the time for repair can become weeks or even months.

Knowledge about costs, life and warranty of componentsMost of the interviewees had little knowledge about costs and warranty-times for the different components. The answers given were often a bit optimistic, especially regarding warranty- times. On the other hand, 7 of the interviewees answered that they only expected the panel to last between 10 and 15 years. Many of the interviewees said they didn’t need to know about costs and warranties, because they could ask the solar committee when the time came to re­place a part.

Effect on use of kerosene and dry-cell batteriesThe installation of the solar home systems has had a big effect on the use of kerosene and some effect on the use of dry-cell batteries. 75% (21,6 litres/year) less kerosene was used and 23% (13,2 batteries/year) less dry-cell batteries.

Reasons for purchase and satisfactionThe main reason for purchasing a SHS was to get good quality of light (90%). Besides light, the reasons were: to get improved indoor environment (55%), have light for studying (55%) and household work (33%).

It is five years ago since the installations in Pulimarang were completed and all the users are still satisfied and very happy with their systems. Even the users that have had some problems with their systems are over all very satisfied.

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Use of light and influence on lifeAll of the interviewed households had one light placed in the kitchen, and the light is mainly used for household work and for children’s studying. Of the interviewed villagers that have children in school 100% answered that their children study one or two hours more now than they did before.

Many thought that their family life had changed a lot since they got electricity. Among the answers we got, these were most frequently stated: the family is happier now, before there was a fire risk every day due to the use of kerosene lamps, the house is cleaner now, house­hold work is easier and the children study more.

The interviewed households value sufficient agriculture production level highest, followed by education. Electricity is ranked as no. 4 out of 5 alternatives. There are no implications of the SHS affecting their religious activities and no cultural barriers against the use of SHSs are found.

People gather in those houses with SHSs that have TV. The negative effects that having the opportunity to watch TV can involve are not seen in Pulimarang. Instead all pointed out how important it is for them to be able to watch TV. They get a lot of information and in many cases it prevents the younger men from migration to bigger cities.

Indoor environmentIn Pulimarang 79% stated that there had been a significant change in indoor environment since the SHSs were installed. In the case of those who has respiratory problems, one third thought there had been a significant change since the solar power was installed. The figures for those with eye problem are the same.

Income generating activitiesOnly about 10 persons work with some sort of handicraft and the main reason for this is not to earn money, instead they see it as a hobby. Only one woman has made her work with handi­craft in to a living and she now supports her family.

5.6.2 Summary of results in Rampur

Technical performanceAll 32 investigated solar systems were working well after about one year of operation. In average one tube for every 7 lights had been replaced and no one had yet had any problems with the ballasts. 3 interviewees had had minor problems with their charge controllers that had been repaired locally. 4 charge controllers had been replaced and 2 were still not working properly. In both these cases, the lights were now connected directly to the battery. After one year, the batteries did not seem to have deteriorated, neither the deep cycle-batteries nor the car-batteries. Most of the interviewees said that they enjoyed between 3 and 6 hours of light per day.

Maintenance and serviceAlmost all the interviewees seemed to be very aware of the need to check the water-level in the battery. Only 3 interviewees said that they checked the water level less than once every three months. One person that admitted that he had never checked the water-level in his bat­tery, did however complain about getting less light lately. Less than half of the interviewees

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cleaned their panels, although when asked many said they would start. One person had made a cover to protect the panel against hail.

With few exceptions, all the interviewees seemed to be happy with the services from the re­spective companies. Both Lotus Energy and SEC through Nanda Battery had trained village technicians who had a small stock of spare parts. However, many of the interviewees did not mention these as who they would turn to if they had problems with their system. Many said they would simply call the company in Kathmandu or just wait until someone from the com­pany happened to come to Rampur. The average time for repair was also quite long, with 7 days being the average stated by the interviewees.

Knowledge about costs, life and warrantyMany of the interviewees had poor knowledge about the warranty-times for the different components and what the cost of new components would be. Many of the interviewees thought that the price of a new battery or charge-controller were less expensive than they are, while they at the same time often thought that the warranty-time was longer. Surprisingly though, they weren’t as optimistic about the expected life of the solar panel, which most thought would last only 11-12 years.

Effect on the use of kerosene and dry-cell batteriesThe reduction in use of kerosene and dry-cell batteries since the installation was significant. 88% less kerosene (65 litres/year) was used and 56% less dry-cell batteries (65 batteries/year).

Financing the SHSAll the systems in Rampur area were either purchased privately or bought within the Nepalese government subsidy scheme for solar home systems. 12 of the 32 investigated systems were purchased privately. Only one interviewee stated that he had some problems with the monthly payments. 40% of the users with subsidised systems answered that they could afford the SHS without the subsidy. All of the interviewees answered that buying a SHS had not affected their other purchases.

Reasons for purchase and satisfactionThe main reason for buying SHS was to get good quality of light (100%). Besides light im­proved indoor environment (16%), light for studying (19%), and household work (12%) were the main reasons for buying a SHS.

One year after most installations were completed 100% of the interviewees stated that they were satisfied with their SHS and thought that their expectations had been met. All of them also answered that they would recommend others to get a SHS. None of the interviewees had found any disadvantages with the SHS, but two were not pleased with the service from the solar company.

Use of light and influence on lifeAll interviewees except one had one light placed in the kitchen and the light is mainly used for household work, for children’s studying and for other work. Of the interviewed villagers that have children in school 86% answered that the children study at least one hour more now than they did before. The interviewees without children or with very young children all said that they are convinced that good light will effect their children’s education.

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The interviewed households value education highest. Electricity is ranked as no. 4 out of 5 alternatives. There are no implications of the SHS affecting their religious activities and no cultural barriers against the use of SHSs are found.

People gather in houses with SHSs either to watch TV or meet in the evenings to talk and discuss different things. They had this type of gatherings before, but with the difference now that it is often later in the evenings. The interviewees that answered that they now stay up at least one hour longer than before either has a TV, go to others houses to watch TV or just gather in evening time to discuss and talk. Some of the younger interviewees pointed out that the opportunity they have to watch TV have meant much to them and that they before had plans to leave their village but not anymore.

Indoor environment41% stated that there had been a significant change in indoor environment since the SHS was installed. Only 2 persons answered that someone in the family has respiratory problems and just one of them had noticed some change since the SHS was installed. None had eye prob­lems.

Income generating activities14 (43,8%) of the interviewees in Rampur have the opportunity to earn more money on their business due. to the possibility to work in the evenings. Still it was only 3 (9,4%) persons that answered that one of the reasons for buying a SHS was to increase their income. These 3 per­sons have increased their income with an average of 4200 NRs/month. Two other persons have increased their income due to electricity, but they did not have the intention from the beginning.

5.7 Discussion of the results

5.7.1 Technical performance

The survey of altogether 52 systems showed that solar home systems can be a practical way of providing electricity to rural households in remote areas. With few exceptions, everyone was happy with the technical performance of their systems. The five year old systems in Pu- limarang were still working satisfactorily, although the batteries are about to need replace­ment. The charge controllers used in Pulimarang do not protect the batteries against over­charging, which may have affected the battery-life negatively. Considering that the batteries used in Pulimarang are ordinary car-batteries, 5 years must however be seen as satisfactory operating life. In Rampur, the deep-cycle batteries used in the installations by Lotus Energy and the better quality of charge controller will most probably lead to better system- performance and longer battery-life.

The fact that high quality is both important and worth a higher price, was also experienced when inexpensive Chinese tubes were supplied with the systems in Pulimarang. These tubes turned out to be of poor quality and broke frequently. After shifting to Japanese tubes, this was no longer a problem. Although the price of the Japanese tubes was almost three times as high as the price for Chinese, everyone in the village felt the better quality was well worth the higher price.

In Rampur most households enjoyed between 3 and 6 hours of light per day, while in Pulima­rang most said 3-4 hours. However, this does not necessarily reflect the capacity of the sys-

55

terns since everyone seemed very economic in the way they used their lights, only having lights turned on when they needed it and always turning the light off when they left a room. None of the interviewees felt that reduced hours of light due to bad weather was a big prob­lem, although about half did say there was a noticeable difference after many days without sunshine.

In Rampur, there was no big difference in the performance of the systems installed by the different companies. Neither company had had any major problems with the lights, but both companies had had some problems with the charge controllers. Two SEC systems were at time of interview without working charge controllers. Two of the car batteries supplied by the SEC had had to be replaced shortly after installation, but otherwise no deterioration could be seen after one year of operation.

Although almost all of the interviewees were happy with their solar home systems, is clear that the performance of the systems and customer satisfaction is dependant on mainly three factors: high quality of components; user-knowledge of needed maintenance and a well­working service network. In the two villages, altogether three interviewees were not totally satisfied with their systems. In Pulimarang, one interviewee had had problems with her bat­tery for 15 months and had only one working light. In this case, there seemed to be a misun­derstanding regarding who was responsible for the system. The interviewee felt that the solar committee did not care about her problems. The solar committee, on the other hand, felt that it was the responsibility of the user to inform the committee about her problems, and also be willing to pay for their services. In another case, a villager had problems with the charge con­troller. Despite several repairs and one replacement, it was still not working properly, and the lights were now connected directly to the battery. This interviewee was unhappy with the quality of the system as well as the service from the solar company. In the third case, it was a villager that was not aware of the need to fill up the battery with distilled water, and he had never checked the water level in his battery.

5.7.2 Maintenance and service

The awareness of needed maintenance was high in both villages. Almost everyone checked the water level in the battery regularly, and many interviewees also cleaned their panels regu­larly. Especially the villagers in Pulimarang were concerned about the maintenance of their systems. One reason for this could be that Pulimarang is a smaller village where everyone does like his neighbour. All the problems are discussed in the Solar Committee and passed on to the rest of the villagers, while in Rampur it is more ‘every man to himself.

The time for repair varied a great deal in both villages depending on the nature of the prob­lem. When the village technicians can repair the component locally or has a spare part in Stock, it takes only a few days or up to one week. But otherwise the time to repair could be­come weeks or even months. This shows the importance of well-trained village technicians and adequate stocks of spares in the villages. In Pulimarang, everyone knew someone in the solar committee personally and always contacted them when they had a problem. This often meant a slightly shorter time for repair in Pulimarang. In Rampur, the average time to repair was similar for customers of the different solar companies but there was some difference in the villagers’ relationship to the village technicians and the company’s representatives. Most of the Lotus customers knew both the village technician and employees at the company in Kathmandu by name and seemed to be very confident that any problem would be handled quickly and easily. However, many villagers seemed to be so friendly with the company’s

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field-staff that rather than contacting the village technician, they would either call the com­pany in Kathmandu or simply wait until someone from the company happened to come to the village. The customers of the Solar Electricity Company did not seem to have that kind of personal relationship with their company and some of them did not even know that there was someone in the village they could contact.

5.7.3 Knowledge about costs, life and warranties

Since a solar home system often is quite a large investment for the villager, it is important that he knows how long his systems will last and what future costs to expect. In both villages the knowledge of costs, expected life and warranties was very low. This could especially be a problem if batteries or charge controllers fail after warranty-time. The battery is expensive to replace, and villagers with little money may choose to buy a cheaper locally-made battery of inferior quality, which may lead to higher total battery costs. If the charge controller fails, the villagers may be tempted to operate the systems without a charge controller, which will affect the battery-life negatively. In Pulimarang, where the batteries are about to need replacement, the village committee is planning to coordinate the purchases among the villagers to get better prices from the dealers.

5.7.4 Comparing with the survey of 1995

When comparing the results to the survey of 1995, the biggest difference concerned the maintenance of the batteries. In 1995, it was not clear who was responsible for the batteries, which resulted in no regular checks of the water-level. After informing all the villagers through the solar committee, this was no longer a problem and everyone was very aware of the need to check the water-level regularly. Another problem in 1995 was the installed plugs for radio and TV, these were to complicated and the users didn’t know how to connect the appliances properly. This problem has not been solved, and more than half of the households with radios still powered them with batteries. The problems with bad fluorescent light-bulbs, which was a fact in the beginning, was as discussed solved by switching from Chinese to Japanese tubes.

5.7.5 Effect on use of kerosene and dry-cell batteries

The reduction in kerosene use was big in both villages, 75% in Pulimarang and 88% in Ram- pur. After the installation the kerosene use was about the same in both villages (8,4 1/year in Rampur and 7,2 1/year in Pulimarang), but before the installation the villagers in Rampur used more than 2,5 times as much kerosene as the villagers of Pulimarang (73,2 versus 28,8 1/year). The use of dry-cell batteries was also similar after the installation of the solar systems (50,4 batteries per year in Rampur and 43,2 batteries per year in Pulimarang). However, in Rampur this meant a 56% reduction from 115,2 batteries, while in Pulimarang it was only a 23% re­duction from 56,4 batteries per year. One reason for the smaller reduction in use of batteries in Pulimarang is that most of the households there still used batteries to power their radios.

On a yearly basis, the reduction of kerosene for the average household amounts to 21,6 litres in Pulimarang and 65 litres in Rampur. The reduction of dry-cell batteries amounts to 13 bat­teries per year in Pulimarang and 65 batteries per year in Rampur. With a kerosene price of 13 NRs/litre and a battery price of 15 NRs/piece, the yearly saving for the average household in Rampur becomes about 1800 rupees, while the saving for the average Pulimarang household was only 480 rupees.

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Compared to the cost of a solar home system, the yearly saving for the average Rampur household equals 10 % of the initial investment for a subsidised system or 5 % of a non- subsidised system. With an estimated service life of 20 years for a solar home system, this means that solar home systems can be cost-effective compared to kerosene and batteries. However, this assumption does not take into account that batteries and other components will need to be replaced. On the other hand, the yearly saving was calculated using a subsidised kerosene price.

For the average Pulimarang household, the yearly saving of approximately 480 rupees is only equal to 2.6 % of the initial investment for a subsidised system or 1,4 % of a non-subsidised system. This shows that the cost-effectiveness of solar home systems, from the users point of view, mainly depends on the consumption of kerosene and batteries before the installation. However, although the saving on kerosene and batteries cannot by far make up for the cost of a solar home system for the households in Pulimarang, the better quality of light and other benefits of electricity was considered well worth the higher cost.

The reduction in use of kerosene and dry-cell batteries also has positive environmental impli­cations. 40 households in Rampur have solar home systems. For all these households, the av­erage yearly reduction in kerosene use of 65 litres per household amounts to 2600 litres per year. This is 2600 litres of kerosene that does not emit greenhouse gases, does not need to be transported by trucks and does not need to be imported. 2600 litres is not a lot but as the num­ber installations increase around Nepal, the positive effects will be noticeable. For the 40 households, the reduction in use of dry-cell batteries means that 2600 batteries each year does not end up in nature.

Comparing our results to the survey in Pulimarang 1995 shows that the reduction in kerosene and dry-cell battery use is a lasting effect. The survey of 1995 showed a kerosene reduction of 82% and battery-use reduction of 15%, which is close to the results obtained in 1998. The difference in results may partly be that the villagers no longer remember exactly how much kerosene and batteries they used before the installations. Also, the results from 1995 were based on more households.

5.7.6 Socio-economic results

Income generationTo justify subsidies for SHSs the government would like to see an increase in income gener­ating activities, for example small cottage industries. Only some increase in income generat­ing activities are found even though many people in both areas have the possibility. The bag­making in Pulimarang for example, is not as extensive as it is said to be. This result shows in a way that the owners of the SHSs in the investigated areas belong to the richer part of the communities. However, it is interesting to notice that 2 out of 3 households without electricity thought they would be able to increase their income because of light. The main problem for them was the high down payment. One interviewee thought she could afford the monthly payments for a SHS if she could work with bag-making in the evenings. One of the men who worked as a tailor was sure he could increase his income if he got the opportunity to extend his work-day with a couple of hours. With reduced down payments or less stringent loan terms it seems like a larger part of the rural poor may be reached.

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Influence of light and TV on educationThe influence of good light for children’s study time and education is remarkable in both vil­lages. 100% of the interviewed villagers in Pulimarang and 86% in Rampur with children in school answered that their children study one or two hours more now than they did before. The interviewees without children or with very young children all said that they are convinced that good light will affect their children’s education. One of the reasons for increased study time is that the children no longer have to study with the use of kerosene lamps. The smoke from a kerosene lamp is very irritating for the eyes. There is a big interest in higher education in both villages. During discussions with the parents many stated that they want to send their children to college if the possibility exists. They expressed no differences between boys and girls, but for the girls it is still marriage at a young age that is the reality.

The question whether TV would reduce the time children spend studying was investigated in Pulimarang in 1995, and the conclusion was that it was only in the beginning the study time was reduced due to the novelty of TV. The parents were aware of the problem and after some time they could see the increase in time their children spent studying compared to before the SHS installation. The negative effects that having the opportunity to watch TV can involve are not seen in either Pulimarang or Rampur.

TelevisionMany villagers pointed out how important it is for them to have the opportunity to watch TV. TV can be a powerful tool for the government to reach more people with valuable informa­tion. The people we interviewed were very interested in learning more about activities that can help them develop their lives, such as information on forestry, agriculture, child-care, etc. The villagers also enjoys the entertainment that TV offers, this is especially important for the younger part of the population and in many cases it prevents the younger men from migrating to bigger cities.

In 1995 the interviewees commented on the increase in their living standard due to the op­portunity to watch TV. TV is no longer a novelty and it is considered as a natural part of their lives today.

SHSs versus other RETsSocial unacceptability of RETs is sometimes a problem when introducing energy programmes as discussed in chapter 3.3. There are no implications of difficulties in social or cultural ac­ceptability of the use of solar home systems.

ChoiceWith only a few exceptions the SHS owners were very happy with their system and its per­formance. In some cases it didn’t even bother them that there were a few problems with the system, they were just as happy. With all this happiness we wanted to see how they regarded electricity compared to other things in their lives. They were asked to rank: electricity, fuel- wood supply, availability of water, education/school and finally sufficient agriclture produc­tion level. In Pulimarang sufficient agricultural production was regarded as most important, closely followed by education. Energy, both in the form of electricity and fuelwood were given the lowest ranks. In Pulimarang there is no shortage of fuelwood supply, which is re­flected in the result.

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In Rampur, however, there are some problems with fuelwood supply and we wanted to inves­tigate their interest for improved cooking stoves. Other obvious problems in Rampur, such as the very bad condition of the road leading to the village, gave us the idea to give the inter­viewees another choice question along with the old one. We wanted them to rank the follow­ing: electricity, transport/roads, school/education, hospital and improved cooking stove. For both of the choice questions education was ranked highest and electricity as no. 4. The results show that the villagers consider education and good schools to be the most important issue. Energy, both in the form of electricity and fuelwood were given the lowest ranks. In Rampur the improved cooking stove was given the largest amount of rank ‘V. However, it is worth noting that is also received the second largest amount of rank ‘5’. The interviewees that seemed to understand the concept of the improved cooking stove often gave it the highest rank.

The results of the choice questions give further implications on how high the villagers value good education.

Indoor environmentThe installation of a SHS has a big positive impact on the indoor environment. Around 80% in Pulimarang and 40% in Rampur stated that there had been a significant change in indoor environment because kerosene lamps are no longer used. It was the smoke and soot from the kerosene lamps that the people were happy to get rid of.

Final remarksThe solar home system is very appreciated and almost every family is very satisfied with its performance. In 1995 only 24% of the families in Pulimarang explicitly said how satisfied they were, which indicates that they are over-all more satisfied today when they know how well the systems work. The opportunity to have good light during the evenings is most im­portant and appreciated. It gives the children an opportunity to spend more time on school- work than before. The household work is made easier due to increased freedom in time women can spend on household work. For example, chores such as washing up can be done whenever it is suitable. Electricity also increases the opportunities for income generating ac­tivities that can reduce women’s heavy workload. For instance, the woman who weaves shawls in Pulimarang was able to sell the buffalo and reduce her working day by 3 to 4 hours. In 1995 the interviewed villagers stated that it was the women and children that benefited most from the SHS use. We have reached the same conclusion, but it is worth noting that the interviewed women do not feel that their lives have changed.

Access to electricity increases the opportunities for development and do have a positive im­pact on lives in remote villages. Development activities such as income generating activities and up-grading of education are facts. Information and motivation from outside can result in other activities, for example literacy classes. The villagers feel more modem because of the SHS use and it makes them more open and interested in other technologies that can affect their lives. In Pulimarang, for example, improved cooking stoves and toilets were going to be introduced on trial-basis and during the time we spent there they were building a health- station.

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5.7.7 Comments to results

We believe that the findings from the fieldstudy give a fairly true picture of the actual situa­tion. However, when judging the results it should be taken into account that we did not speak the same language as the interviewees. The interviews were made with the help of a Nepali interpreter, but our financial resources limited the choice of interpreter to a somewhat inexpe­rienced person, with limited proficiency in English. We did learn some basic Nepali that was very helpful in judging the accuracy of the interpretations, but not enough to be able to have any deeper conversations with the interviewees. The fact that the villagers are not used to vis­its from Europeans probably also made a difference. The villagers were very interested in us and often all the neighbours gathered around during the interviews. This may have influenced the answers given by the interviewees, especially on questions regarding income, expendi­tures and problems with payments. The language barrier made it difficult to discuss questions in a wider perspective, which resulted in much more detailed questions than sometimes in­tended. For instance, it was difficult to find out about the interviewees technical understand­ing of the system as a whole and how the system had affected their lives in general. We had from the beginning the intention to interview a large number of women to find out about the special implications for women. However, it was hard to interview the women without the interference of their husbands and with the full co-operation of our interpreter, which de­creased the number of interviews made.

Figure 5.2. An example of an interview (Teresa and Rajkumar in the centre).

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6 Developing a sustainable solar market in Nepal

Solar home systems represent a clean and environmentally friendly alternative for rural household electrification. The progress in PV development both technically and economically the last years has made solar home systems a viable option and the success of donor- supported rural household electrification programs has shown that solar home systems can be a practical solution for many rural households. In Nepal, the government subsidy program has created a large demand for subsidised systems, which shows that solar home systems are very attractive to the rural households. However, providing subsidised systems to any substantial part of the rural population is not a practical solution for either donor agencies or the govern­ment (Ahm, 1998).

The goal of solar market development must be to drive the solar market towards commercial sustainability. A commercial market brings additional capital to the energy sector from the private sector and the customers themselves and an increased role of market forces leads to greater efficiency in the allocation of resources. The major constraint against the development of a commercial solar market is the high capital cost of PV systems and the high transaction costs involved due to the limited market in the initial stages. In the early stages of market de­velopment it is hard to reach the economics of scale that could reduce the price. The cost of the systems as well as overhead costs, such as sales and support networks and financing infra­structure, can be expected to fall when markets mature. However, the solar home system mar­ket can only grow if the systems are made affordable to a larger part of the rural population. Examples from around the developing world show that with appropriate financing mecha­nisms, many rural households are willing and able to pay market prices for solar home sys­tems.

Establishing a sustainable solar market requires developing affordable and sustainable finan­cial mechanisms along with appropriate institutional infrastructure. It also includes ensuring high technical quality and the development of training, service and maintenance infrastructure necessary to make installations sustainable in a local context. Although a financially sustain­able solar market should not be dependent on financial support from government and donors, both have important roles to play in the initial stages of development.

6.1 Role of Government

The main role of the government is making the rules and regulations that ensure that markets can work efficiently. This includes creating a level playing field for PV technology in relation to other energy sources, facilitating access to credit for rural customers as well as implement­ing organisations, and ensuring efficient planning and co-ordination of rural electrification programs. The government can also support the development of a solar market by various promotional efforts such as information campaigns, developing and enforcing quality stan­dards and supporting local participation in electrification programs. While the market mecha­nisms may be crucial in the development of a financially sustainable market, market forces alone will not address concerns about equity. Although subsidies should not be supported as a long-term strategy, they may be needed to reach the poorer parts of the population, especially

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in the initial stages of market development. When subsidies are used, the government needs to formulate appropriate policies that ensure their objectives are achieved.

6.1.1 Creating a level playing field

To facilitate market development, the government needs to provide a level playing field, in terms of subsidies and cross subsidies, taxes and duties, among all energy supply technolo­gies. Today price subsidies on grid-electricity, kerosene and diesel and capital subsidies on various renewable energy technologies distort the market (Rijal, 1998). For instance, the sub­sidy on kerosene reduces the rural people’s incentive to purchase solar home systems. Subsi­dies may be needed to make energy affordable to the poorer parts of the community, but it is important that each alternative receives equal financial support. Heavy import taxes and duties should also be avoided as they can seriously constrict market growth. Renewable electricity manufacturers in Nepal are exempted from taxes and duties for the first seven years of opera­tion (Gimrie, 1998 and Tamrakar, 1998), and this should be continued.

6.1.2 Facilitating access to credit

The government should support innovative financing schemes that allow lenders to offer long-term credit and low-interest loans to both implementing organisations and rural house­holds. Indirectly, the government can facilitate access to credit by information campaigns targeted at financial institutions. An increased awareness of PV technology may increase fin­anciers willingness to lend money for solar home systems.

6.1.3 Planning and coordination

Rural electrification programs and projects must be planned, co-ordinated and monitored properly to ensure that not only the best technology for a specific area is chosen, but also is cost-effectively implemented. Apart from the regular budget allocation by the National Plan­ning Commission, there has until recently been no effective co-ordination or monitoring of RETs on a national level. One exception from this, is the Biogas Support Program, which is governed by a donor-supported board (Rijal, 1998). However, in November 1996 the gov­ernment of Nepal established the Alternative Energy Promotion Centre (AEPC) to take on the responsibility of promoting and commercialising alternative energy technologies.

Electrification projects also need to be co-ordinated with the Nepal Electricity Authority’s rural electrification programs (extension of the national grid). Extension of the grid needs to be planned well ahead and known to all involved stakeholders. Overly optimistic projections of the scope of grid-extension reduce the incentive for rural households to purchase solar systems (Ahm, 1998). On the other hand, installing solar home systems in areas that the grid reaches within a few years is not an optimal use of resources. The current criteria’s for solar home system subsidies include that the grid should not reach the area within three years. Con­sidering the high investment cost and the long service life of a solar home system, three years is not a very long time. There are also examples of lacking communications which has led to subsidised systems being installed in areas where the grid is expected within one year. How­ever, grid-based electricity has several advantages over solar home systems, and the fact that solar home systems are installed in an area should not disqualify it from receiving grid-based electricity, as that would seriously reduce the incentive of rural customers to purchase solar home systems.

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6.1.4 Supporting local participation in electrification programs

Local organisations may be better suited than the government to evaluate the energy needs of rural areas and to encourage and motivate women’s participation in designing energy pro­grammes. The role of the government should be to promote these organisations participation in both planning and dissemination, and give guidelines to gender-approached projects. The government, as well as NGOs and the private sector can also play an important role by pro­viding necessary training to entrepreneurs and by conducting awareness programs (Rijal, 1998). The promotion of weaving and bag-making by women entrepreneurs in Pulimarang is a good example of productive end-use of solar electricity. The formation of village-level solar committees is another example, which can have a positive impact on long-term sustainability. If the solar committees receives adequate training in servicing and maintenance as well as business management, the chances increase that the systems will perform well under many years and that the payments will be met.

6.1.5 Standardisation, warranties and insurance

For rural electrification in remote areas, high technical quality of components is essential for long-term sustainability. Lack of formal standardisation can result in the use of inadequate or poor quality. Standards can be useful to manufacturers, implementers and users as well as financing institutions. Governments should support the development and enforcement of quality standards. Warranties are also important in ensuring quality output and in making suppliers responsible for what they promise to deliver (Rijal, 1998). The government can put pressures on manufacturers by demanding adequate warranties. If risks like theft, fire and injury can be covered through insurance, the financial risk to entrepreneurs and users can be minimised (Rijal, 1998).

6.1.6 Formulating subsidy policies

To build up markets for new technologies, or to make them affordable to a larger part of the population, subsidies are often necessary. The long-term goal of a subsidy program should however always be to make itself expendable. Consequently, subsidies should ideally only be used to compensate for the higher costs of an undeveloped market, and be removed when markets have matured. Subsidies should mainly be used for market conditioning activities, such as feasibility studies, promotion campaigns, training and user-support, and establishing necessary infrastructure.

When capital subsidies are used it is important that they are properly designed and that the objectives are clearly specified and correspond with the general objectives of rural develop­ment. Although the objective of subsidies often is to reach the poorer part of the population, they are often subject to a ‘free rider’ problem, which means that the wealthier part of the population, that could have afforded the systems without the subsidies, benefits from it. Im­properly designed and implemented subsidies can have various negative impacts. For exam­ple, the funds for the solar home system subsidy have been allocated in the beginning of each fiscal year since 1995/96. The subsidy creates a demand that can not be met, which lead to the funds running out after only a few months. This suppresses the immediate demand in antici­pation of future subsidies and can have negative impacts on long-term implementation. Conti­nuity and predictability is needed to create stable market conditions for suppliers and involved organisations.

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Today, the subsidies are only available for a ‘standard’ 36 or 32 Wp solar home system. Even with the subsidy, the high down payment and short repayment period make these systems unaffordable to the poorer households. Given a flat subsidy rate for any choice of system size, low-income households gets the opportunity to purchase smaller solar home systems. The main barrier to affordability for many households is the high down payment and the relatively high monthly payments induced by the short repayment period. If the fund for the capital sub­sidies were shifted to provide loans with extended repayment periods or lower down payment, more households may be able to afford the systems.

6.2 Donors, NGOs and the private sector

6.2.1 Role of donors

In the initial stages of market development, international donor agencies have an important role to play in promoting new technology and giving financial support. The high up-front costs of solar home systems makes availability of low-cost financing essential for the devel­opment of a solar market. Donors can support the development by managing the risks of fi­nancing PV markets by offering long-term credit and low-interest loans to local financial in­stitutions and PV program implementers However, the implementation should not be handled directly by the donors, as this does not help to build local capabilities. Donor organisation activities can include assisting the government and local organisations in evaluation of rural energy options, improving program design in terms of technical design, quality standards, installation practices and evaluation procedures (Cabraal et al, 1996). To be effective it is im­portant that all donor efforts are co-ordinated with the efforts of the government, local NGOs, the private sector and other donors.

6.2.2 Role of NGOs

The role of NGOs should be to support each government in planning and implementation of rural electrification programmes. They can function as intermediaries in projects, work out frameworks for standardisation, monitor and evaluate programs. NGOs and other area-located organisations may be better suited to evaluate energy options and needs of rural areas than the government. Governments should therefore consider finding participants in project- implementation among these.

6.2.3 Role of companies

The private companies provide the solar home systems for the rural population and, especially in the early stages of market development, it is their responsibility to keep the prices as low as possible without compromising the quality. Prices can be kept low by manufacturing as much as possible locally and by making bulk purchases when importing components. Two of the private solar companies in Nepal import PV modules together and have recently decided to import batteries together as well. In addition to providing solar home systems of high quality, the private solar companies also have a responsibility to ensure a well-working service net­work and to give necessary training to local technicians as well as end-users. With adequate training to local technicians the company can make the support more efficient, especially if the local representative has a stock of spare parts. Keeping trained local technicians in a spe­cific area will also make new installations easier. The role of the companies should also be to work out a functioning network for taking care of used batteries and providing a second-hand

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market for PV modules. In areas where grid connection only a few years away an efficient second-hand market could be of high value for the rural customers. If the second-hand price on a system is fair the rural customers could choose to buy a SHS even though grid extension is planned for the future. Second-hand systems could also be a good option for low income households that can not afford the price of a new system. Another advantage with a second­hand market with established second-hand prices, is that it may increase financiers willing­ness to consider the system as collateral, which both the customers and the companies would benefit from.

6.2 Increasing affordability

The main barrier against the affordability of solar home systems is the high capital cost com­pared to its life-cycle cost. For many rural households the cost of a SHS represents over two year’s income. Even if the average monthly cost spread out over the systems physical life could compete with kerosene and batteries, the rural population can rarely afford the invest­ment. The lack of access to credit for rural customers further reduces their ability to purchase solar home systems. If a solar home system program is to be financially sustainable all costs associated with the implementation must be recovered. This includes capital investment, sup­port services, administration, and satisfactory returns for investors. Examples from around the developing world shows that many small-scale users are willing to pay market prices for solar home systems, and with appropriate financing mechanisms many households are able to pay for the full cost of their purchases.

To ensure that payments are met rural customers need to have access to financing terms that meet their ability to pay. When credit is available, the terms are often quite stringent with short payback periods, high interest rates and demands of adequate collateral. Stringent credit terms may be bad for the customers and the market, but have several advantages for the lend­ers. If payments should default, the down payment should have covered the costs that can not be recovered, such as labour and installation materials. A high down payment also screens out the customers that are able to pay for battery replacement. Short repayment periods also en­sures that borrowers have repaid the loan before the battery needs replacement (Cabraal et al, 1996). However, for the majority of the rural people, these credit terms are very difficult to meet. A lower down payment and extended repayment period would make the system afford­able to more people. Many households would also benefit from flexible repayment schedules that consider crop-sales and intermittent employment (Cabraal et al, 1996). To increase finan­ciers’ willingness to take risks with more lenient credit terms, effective mechanisms to en­force repayments are needed. Repossessing of the system or parts of it, permanently or until the customer has caught up with his payments, could be effective, but may be difficult to re­alise.

To increase the affordability of solar home systems among rural customers, affordable and accessible financing must be made available. Financing can be arranged through various dif­ferent institutional models, such as leasing arrangements; financing through an energy service company (ESCO); and consumer financing through dealers or commercial banks (Cabraal et al, 1996).

6.3.1 Leasing arrangements

Under a leasing arrangement a company, organisation, bank or some form of intermediary retains the ownership of the SHS until the cost is recovered. In several developing countries,

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successful leasing programs have been set up with grants or low- or zero-interest loans from donors and governments and with NGOs as intermediaries (Cabraal et al, 1996). The solar module and charge controller is usually owned by the intermediary, while the other compo­nents are owned by the customer. The intermediary provides the financing of the SHS and is responsible for the repayment to the donor or government. The customers make monthly payments to the intermediary and when the loan is paid off, the ownership transfers to the customer.

The intermediary functions as co-ordinator of the project, find participants, and collect the fees. The intermediary, or supplier under contract to intermediary, makes bulk purchases of systems, provide installation and maintenance service, train the customers, and keep stocks of spare components. Some of the advantages of leasing arrangements are:

• The intermediary can obtain favourable financing terms that are not generally available to individual consumers. An intermediary is generally considered more creditworthy than in­dividual rural customers, which increases the possibilities to obtain loans. The transaction costs for one large loan are lower than the costs for many small loans. The advantages of one large loan-taker can hopefully be passed on to the rural customers through lower costs for example service fees.

• When all repayments are done the ownership of the SHS will transfer to the customer. This ensures that the customer will take good care of the system during the leasing period.

• Service of the system can be part of the leasing agreement. Both the customer and inter­mediary will benefit from this. The customer through a well-working system during the leasing period and the intermediary by having control over the status of their equipment. A well-working system ensures satisfied customers and that payments are met.

6.3.2 Financing through Energy Service Company

Rural electrification through solar home systems can be managed in the same way as grid extension. An energy service company (ESCO) sells energy services, in this case by installing SHSs. The ESCO retains the ownership of the PV module throughout its entire service life. It may also retain ownership of the charge controller, inverter, and battery. In this case the cus­tomer pays only a monthly fee for the energy service provided. The ESCO is responsible for purchases, installations, service, financial management, and the administration. This method has similar financial arrangements as grid-based electrification, where repayment period is associated with the physical life of the equipment. One of the advantages with this method is the smaller monthly payments for the customer, due to the long repayment period. This will allow the ESCO to serve a larger part of the rural population, which can enable cost-effective management. As a company the ESCO can obtain more favourable financing agreements than individual customers, for example low interest loans. The advantages of favourable financing terms are the same as those for leasing arrangements.

An ESCO can be, besides an electric utility, a NGO or a private company. Because of the large consumer base, an ESCO can be a useful model for providing rural energy in areas where grid-based electricity is not the least-cost option. The main disadvantage with the ESCO model is that it requires a very strong organisation, which is difficult and costly to set up. This can be avoided if the ESCO is set up by an existing electric utility company. Another

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disadvantage with this model is the fact that the consumers do not own the system and they may therefore be misused (Cabraal et al, 1996).

6.3.3 Consumer financing through commercial banks or dealers

Commercial financing is of course the key to a sustainable PV market. However, in the devel­oping world, commercial banks are generally reluctant to finance consumer durable goods. Rural people can rarely offer acceptable collateral and commercial bank financing is often restricted to high-income consumers. Some commercial banks in Nepal have hire-purchase programs, where the purchased item acts as collateral, but this is not applied to solar home systems (Rijal ,1998). If financing is obtained it is usually offered with shorter repayment periods and higher interest rates than other purchase arrangements. Financing through dealers is very common in all over the world to increase sales of consumer durables, but again, credit is often limited to those with higher incomes. Credit terms offered by dealers often include even shorter repayment periods and higher interest rates than banks. On the other hand, the dealers have the incentive to sell and if the dealer is part of the community and familiar with his customers’ creditworthiness, he may not require as stringent security guarantees. The main advantages with commercial financing are that it has the potential to offer competitive and efficient services and can be financially sustainable if there is sufficient demand.

6.3.4 Increasing credit availability

The limited credit availability and rural households lack of adequate collateral will continue to constrict the solar market until enough projects show success and the credibility of the tech­nology increases. Some approaches to increase credit availability and collateral includes (Cabraal et al, 1996):

• Seed capital fund. In the initial stages of market development, funds provided by devel­opment aid agencies or other donors can be used to establish a revolving fund. One exam­ple of this is the ‘Pulimarang Village Electrification Program’, where funds provided by the Solar Electric Light Fund were used offer villagers affordable loans. Loan repayments back to the fund were used to finance additional loans.

• Financing by the government. As with grid-based rural electrification, the government finances the initial capital equipment of a PV project through an equity contribution or a loan. The financing can be directed towards a solar company or intermediary in a leasing arrangement or an energy service company. The financing could also be aimed directly towards the rural households through low interest loans with extended repayment periods.

• Loans to solar companies. Solar home system companies could procure a loan by mort­gaging its assets. If assets are insufficient, the loan could be based on expected cash flows with received or projected orders as security. The loans could be used for bulk purchases of PV modules and batteries and the benefits past on to the customers or to enable the so­lar companies to offer customers favourable credit terms. Credit from PV module suppli­ers could further improve the solar company’s cash flow.

6.3.5 Increasing access to collateral

For the rural customer, the first obstacle in obtaining a loan is producing adequate collateral, which is usually very difficult for customers without a landowner certificate. The PV module

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or system is generally not considered to be adequate collateral. The SHS status as collateral could be increased if effective mechanisms for repossessing the system, permanently or until the customer has caught up with his payments, where in place. A second-hand market with established second-hand prices, could further increase the systems status as collateral. An­other factor to be considered is the income generating potential of the solar home system. If it can be shown that the system is used for income generating activities, the income stream could be used as part of the loan security.

Formation of village solar co-operatives could be another way of increasing the access to collateral for the poorer parts of the community. The total available collateral in a village is put in a large pool, which acts as security for systems for the entire village. This naturally requires a very close knit community, where the better off are willing to help those less fortu­nate and where societal pressures to honor one’s debt are high. The government may need to support the community by providing seed capital funds, or by incentives such as providing a solar system for community use. The government can also support the community by training in business practices and system maintenance.

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7 Conclusions and recommendations

7.1 Rural electrification alternatives

The rural electrification alternatives for Nepal include extension of the national grid, micro­hydropower, diesel generators and PV systems. Providing electricity in remote areas is asso­ciated with various different problems, such as difficult topography, a scattered population, low energy demands, poor infrastructure and a fragile environment. From user perspective, electricity from a reliable distribution grid is preferable, but the costs involved in building and maintaining long transmission lines over difficult terrain minimises the prospect of grid-based electricity for many remote areas.

Micro-hydropower has the advantage of being an indigenous technology, which has resulted in the establishment of a manufacturing base in the country. The relatively low capital in­vestment, short construction periods, existence of large hydropower potential, and simple op­eration often makes micro-hydro the most cost-effective option for rural electrification. How­ever, micro-hydropower requires sufficient levels of energy-demand as well as sufficient flow of water.

In areas where micro-hydro is not technically feasible, diesel-generators may be cost- effective. However, diesel generators have a short life span and require periodic maintenance. Poor infrastructure often makes maintenance as well as supply of diesel both difficult and costly.

7.2 The solar home systems niche

The economic niche for PV systems is remote areas where energy demand is low. PV systems are reliable and require little maintenance. In areas where service, maintenance, and fuel sup­ply are difficult to manage, PV systems have the potential to be the least-cost alternative. Compared to diesel and kerosene, PV technology is an environmentally friendly alternative, which also reduces the country’s dependence on imported fuels, thereby saving foreign cur­rency. Solar home systems do not provide power for productive use, but for households that today use kerosene for lighting and batteries for operation of small household appliances, so­lar home systems may be the optimal solution.

7.3 Succeeding in implementation

The long-term sustainability of PV system implementation depends on the technical perform­ance of the systems and customer satisfaction. Consumers need well-designed systems of high quality in order to ensure good performance over many years. It is also vital that users are informed of needed maintenance and the limitations as well as the capabilities of the systems. When systems fail or components need to be replaced local support is important. This in­cludes village technicians with adequate training and a stock of spare parts.

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7.4 Conclusions of fieldstudy

The fieldstudy verified that with high quality of components, good user-knowledge of needed maintenance and a functioning service network, solar home systems are a reliable source of electricity for rural households. The knowledge of needed maintenance was in general high among the villagers, and although the time to repair in some cases were weeks or even months, most of the villagers were happy with the service provided by the solar companies. Although most charge controllers did work properly, there had been some problems with them and they can be considered to be the weakest point. Since the performance of the charge controllers directly affect the battery-life and the system performance as a whole, it is very important that the quality of the charge controllers is high. The systems in Pulimarang showed that ordinary car-batteries can provide sufficient levels of electricity for up to 5 years. How­ever, the service life of the batteries depends on electricity-use patterns, and in Pulimarang everyone was very economical regarding the use of their lights. The better quality of charge controllers and the deep-cycle batteries used in Rampur, will probably mean that these sys­tems will be in even better condition after 5 years.

Installation of solar home systems has a big impact on the use of kerosene and dry-cell bat­teries. In Rampur, 88% less kerosene and 56% less batteries were used and in Pulimarang 75% less kerosene and 23% less batteries. There was a big difference between the villages in consumption before the installations, which meant a big difference in the yearly savings for the average households. In Rampur, the yearly saving was equal to NRs 1800, or 10% of the initial cost of a subsidised solar home system, while in Pulimarang the yearly saving was only NRs 480, or 2,6% of the initial cost. This shows that solar home systems can be cost-effective for villagers with a high consumption of kerosene and batteries, but not for small consumers.

The environmental benefits of kerosene-substitution could become noticeable as the number of installations grows. The average household in Rampur, used 65 litres less kerosene per year, which if multiplied by for instance 1000, would mean 65000 litres of kerosene that does not contribute to pollution, does not need to be transported on trucks and does not need to be imported.

Even if solar home systems are not the least-cost alternative, the additional benefits of elec­tricity may be well worth the higher price. Access to electricity increases the opportunities for development and has positive impacts on lives in remote villages. The opportunity to have good light during the evenings is most important and the positive impact on children’s educa­tion is remarkable. Access to light increases the freedom in the sense that the villagers, espe­cially the women, can utilise a larger part of the day, which includes extended opportunities for income generation. Even though solar power has no direct impact on women’s heavy workload the example from Pulimarang shows that the opportunity of income generation can reduce the workload significantly. The installation of solar home systems also has a positive impact on the indoor environment. It is mainly the children and women that benefit from the use of solar home systems.

7.5 Recommendations for developing a solar market

The goal of solar market development must be to drive it towards commercial sustainability. Before reaching commercial sustainability the development requires affordable and sustain­able financial mechanisms along with appropriate institutional infrastructure. The involved stakeholders include the government, donors, NGOs and private solar companies.

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7.5.1 Government

The main role of the government is to facilitate market development and to create the rulesand regulations, which will ensure that the market can work efficiently. This includes:

• Creating a level playing field for PV technology in terms of subsidies and cross subsidies, taxes and duties in relation to other energy sources.

• Facilitating access to credit by supporting innovative financing schemes that allow lenders to offer long-term credit and low-interest loans and increasing the awareness of PV tech­nology among financiers to increase their willingness to lend money for solar home sys­tems.

• Planning, co-ordinating and monitoring rural electrification programs to ensure that the best technology for a specific area is chosen and is cost-effectively implemented.

• Supporting local participation in both planning and disseminating of energy programmes, and give guidelines to gender-approached projects.

• Supporting the development and enforcement of quality standards and demanding ade­quate warranties from suppliers.

• Ensuring that subsidies are properly designed, and correspond with the general objectives of rural development. If the objective of the subsidies is to reach the poorer part of the population they should be available for different sizes of solar home systems and/or shifted to provide loans with extended repayment periods or lower down payment.

• Encouraging lenders to consider collateral from village solar co-operatives.

• Encouraging lenders to consider the income generating potential of the solar home system as collateral.

7.5.2 Donors, NGOs and the private sector

• Donors should support market development by managing the financial risks by offering long-term credit and low-interest loans to local financial institutions and PV program implementers. Implementation should not be handled directly by the donors, as this does not help to build local capabilities.

• NGOs should function as intermediaries in projects, work out frameworks for standardi­sation, monitor and evaluate programs. NGOs and other area-located organisations may be better suited to evaluate energy options and needs of rural areas than the government. The government should therefore consider finding participants in projects among these.

• Private solar companies should be responsible for training of local technicians and user- support.

• Solar companies may be best suited to organise the handling of used batteries since they have contact with the customers during the entire life of the system.

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• Solar companies should also consider providing a second-hand market for solar panels. An efficient second-hand market could be of high value for rural customers and a second­hand market with established prices, may increase financiers willingness to consider the system as collateral.

Above all, it is of utmost importance that all involved stakeholders co-ordinate their activities. For the government, with limited financial assets, it is especially important that the resources are used optimally. Extending the grid to areas where subsidies were granted for solar home systems only a few years before is not an efficient way of using resources. NGOs and interna­tional donor agencies also have the responsibility to find out about grid extension plans and other electrification programs. The implementation of solar home systems should not compete with grid extension or micro hydropower. Solar home systems should be used in areas where they are shown to be cost-effective, or where no other electrification plans are made or tech­nically feasible. Considering the large areas of Nepal that are still not electrified and won’t be for many years the possibility to use solar home systems should be considered seriously.

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Appendix A: Introduction to Nepal

A.l Geography

The kingdom of Nepal is situated in South Asia, bordered by Tibet in the north and by India in the east, south and west. Draped along the greatest heights of the Himalayas, Nepal is a beautiful, spectacular and fascinating land. Topographically, the country can be divided into three distinct regions from north to south: the mountainous region, the hilly region and the flat plains, the Terai. The total land area is 147,188 sq. km, stretching 885 km from east to west and between 145 km to 241 km from north to south (UNDP, 1996). Within that small area the is the greatest range of altitude to be seen on the earth - starting with the Terai only 100 m above sea level and ending with the highest peak of the world Sagarmatha or Mount Everest at 8848 m above sea level. Due to its diverse topography, almost all climatic zones are repre­sented in Nepal: tropical, sub-tropical, temperate, alpine, and sub-arctic. Nepal has a typical monsoonal, two seasons year. The dry season starts in October and last until end of May when the monsoon takes over for three months. The mean annual temperature is about 15 degrees Celsius, but the summer temperatures can rise above 40 degrees Celsius in some parts (UNDP, 1996).

A.2 Population

Nepal’s population is estimated to about 21 million and it is growing at 2.6% per year (US Embassy Kathmandu, 1998). The share of the urban population is 10% and is growing at around 7% annually. 40% of the urban population lives in the three towns of the Kathmandu Valley. The population is relatively young, with 46% under the age of 16 (UNDP, 1996). Like the geography, the population of Nepal is extremely diverse. There are about 75 different eth­nic groups speaking about 50 different languages. Nepal is the meeting point of the Tibeto- Burman people of the Himalaya and the Indo-Aryan people of India. The main religions are Hinduism (87%), Buddhism (8%), and Islam (4%) (US Embassy Kathmandu, 1998). Other religions represented are Christianity, animism and there are also many tribal groups in the country. Even though so many ethnic groups live on this small area, the co-existence of these different cultures have for centuries been marked by tolerance and openness. Nepali is the official language, but it is only spoken as the first language of 58% of the population (Lonely Planet, 1996).

A.3 History and politics

The history of Nepal is, as long as recorded, the one of small kingdoms and many wars. In 1768 king Shah, ninth of the Shah kings, conquered large parts of Nepal and moved the capi­tal to Kathmandu. The Shah dynasty, which continues to this day, was established. In 1810 Nepal was approximately twice it current size, but after war with the British and peace treaty in 1816 the present eastern and western borders were established. In 1858 the British re­warded Nepal for their support in the War of Independence in India and the present southern border was established. Because of the defeat in 1816 the Nepalese decided to shut off all foreign contact and the country's borders were firmly closed to outsiders until 1951 (Lonely Planet, 1996). The aristocracy managed to retain its influence and hold the power until 1990 when the king announced that he was lifting the ban on political parties. And in 1991 the first democratic election was held.

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A.4 Health

Although most health indicators have significantly improved in recent years, Nepal still has a long way to go even to reach the South Asian average. Life expectancy at birth is estimated to be 55 years. With the life expectancy rate for men at 55.8 years and women 54.9 years, which reflects women’s deprivation to a degree, Nepal is one of two countries in the world in which men live longer than women (UNDP, 1996). The total fertility rate is estimated at 5.3. the maternal mortality rate is high at 5.15 per thousand, and the infant maternity rate is 91 per thousand. About 70% of the children under the age of five suffer from moderate to severe malnutrition. Only about 48% of the population have access to safe drinking water and only 6% of the total population have access to proper sanitation facilities (UNDP, 1996).

A.5 Education

The illiteracy rate in the country is very high at 74%. However, education is gradually spreading to the small villages in the rural areas. The gender disparity in literacy is also very large, with 52% of the males literate and only 25% of the females. The national goal of the country is to eradicate illiteracy and provide basic and primary education to all by the end of this century (UNDP, 1996).

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Appendix B: Solar Photovoltaic Technology

B.l The Photovoltaic process

The solar cell generates electricity by converting sunlight into electricity through the photo­voltaic process. Sunlight is composed of photons and as they strike the solar cell some of these photons are absorbed. The excess energy is transferred to an electron, which uses the extra energy to free itself from its normal place. Once freed, the electron is available to be­come part of an electric current. An electric field in the cell provides the voltage needed to drive the current through an external load (DOE, 1999).

The solar cell consists of semi-conducting layers and the electrical field is created when the layers are sandwiched together. There are a number of materials suitable for making these semi-conducting layers, but the most commonly used is crystalline silicon. One layer is ‘doped’ with atoms of a material having one more valence electron than the silicon (phos­phor), and the other layer with atoms of a material that have one less valence electron (boron). Both layers are still electrically neutral, but the first layer has ‘excess’ electrons and the other layer has a ‘deficit’ of electrons and are called n-type and p-type (n for negative and p for positive). When the layers are sandwiched together, the excess electrons of the n-type flows to the p-type, while the ‘holes’ created in the process flows to the n-type, creating an electric field at the surface where they meet. When the sunlight strikes the cell the electric field causes the electrons to jump out towards the surface of the semi-conductor (while the holes move in the opposite direction), where they are made available for the electrical circuit. When other materials are used the process is more complex, but the principal is the same (DOE, 1999).

B.2 Band Gap

When the sunlight strikes the cell only certain wavelengths of light will cause the electrons to move within the semi-conductor. The band gap, which is the energy gap between the energy level in the valence band and the conductor band, of the specific semi-conductor determines which portion of the sunlight that will create the effect. Photons with energy levels below the band gap will not be able to move an electron from the valence band to the conductor band where it is free to move. The photon will pass through the material and be absorbed by the back contact and transformed into unwanted heat. A photon with more energy than the band gap will free an electron, but the excess energy (the difference between the photon energy and the band gap energy) will be transformed to heat. Different materials have different band gaps and the band gap determines the open circuit voltage of the solar cell. A material with a high band gap will have a higher open circuit voltage. (DOE, 1999)

B.3 The PV cell

To collect the current and connect the cell to en external load, electrical contacts are needed. The contact on the back of the cell (away from the sun) is usually a layer of aluminum or molybdenum metal (DOE, 1999). The contact on the front is more complicated as it must not shade the cell itself from the sun too much. Usually a metal grid is used and the size of the ‘fingers’ is compromise between low electrical resistance losses (thick fingers) and not blocking too much of the sun (thin fingers). A well-designed grid has losses of 3 to 5 % (DOE 1999). On the surface of the cell a thin layer of an anti-reflective coating is applied. Without

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this coating, a large amount of the sunlight would be reflected, but the coating reduces the reflectance to under 5 %. In high-efficiency cells texturing is also common. Pyramids and cones are chemically etched on the surface of the cell, which allows the cell to catch some of the light that would normally be reflected (Aurora, 1998). Figure B.l shows the different lay­ers of a solar cell.

Figure B.l. The layers of a solar cell (layers not to scale). (Based on Aurora, 1999).

B.4 The PV module

The power generation ability of a solar cell is usually expressed in Wp (watt-peak) units, which is what the cell delivers under optimal conditions (a solar radiation density of 1000 W/m2 and a cell temperature of 25 °C). Under these conditions a 100 x 100 mm cell with 15% efficiency generates 1.5 W (Aurora, 1999). To generate more power a number of cells are connected in series. The connected cells are encapsulated in a weather resisting material. The top generally consists of a tempered glass plate, while the bottom is covered in synthetic ma­terial and the module is held together by an aluminum frame (DOE, 1999). The efficiency of a module is always lower than that of a single cell. One reason for this is that the area of the module is always larger than the total cell area. The other reason is that since the cells are connected in series, the cell with the poorest properties decides the performance of the module (Hill, 1998).

B.5 Cell materials

Today four different materials are used in the production or pre-production of solar cells. The by far most commonly used material is crystalline silicon, followed by amorphous silicon. The two other materials used in solar cells are Cadmium Telluride and Copper Indium Dise- lenide. In addition to this, a number of other materials are being investigated or used in ex­perimental systems.

B.5.1 Crystalline Silicon

Silicon is one of the earth’s most abundant elements. In nature silicon mainly exists in the form of siliconoxide and needs to be refined to 99,9999% purity to be used in solar-cells. In mono-crystalline cells, the whole cell is made out of one large crystal with excellent proper­ties for electron movements. The efficiency for these cells have in laboratories reached 24%, while commercial modules have efficiencies of about 15%. Multi-crystalline silicon cells are

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cheaper to produce but the grain-boundaries between the crystals impede the flow of elec­trons. This means lower efficiency, in laboratories about 18% (PV Power, 1999).

B.5.2 Thin Film technology

Thin-film technologies means thin layers of the required materials are sequentially deposited on various low-cost substrates. The material use is much lower and the manufacturing process easier. This means that the cells can be manufactured relatively inexpensively and can easily be scaled up. The thin-film technique allows the layers to be deposited on any size substrates so a number of small cells do not have to be connected to make a module. The most com­monly used material in thin-film cells is amorphous silicon, but Copper Indium Diselenide and Cadmium Telluride are also used. (DOE, 1999).

B.5.2.1 Amorphous silicon (a-Si)

In amorphous solids the atoms do not form in crystalline structures and they contain many structural and bonding defects. However, the amorphous silicon absorbs solar radiation about 40 times more efficiently than crystalline silicon, so with proper manufacturing methods these cells can reach an efficiency of 10 % in the laboratories. The main advantage with these cells is that the high absorption of solar-radiation allows a very thin layer (about 1 micron) to be deposited on low-cost substrates, making the cells relatively inexpensive. The main disad­vantage is that the performance of the cell decreases when exposed to sunlight (Hill, 1998). Commercial modules have efficiencies of approximately 7 %.

B.5.2.2 Cadmium Telluride (CdTe)

Cadmium Telluride can be deposited on the substrate through various different technologies and holds promise of low cost production. Cells with efficiencies of over 15% have been pro­duced in laboratories. Modules have been produced on research-scale and outdooor testing has shown little or no degradation. The efficiency of a module is approximately 7%. One dis­advantage with this cell is that cadmium is very toxic. (DOE, 1999).

B.5.2.3 Copper Indium Diselenide (CIS)

CIS-cells have very high absorptivity and do not have degradation problems when exposed to the sun. Lab-efficiency is close to 18% and modules have been measured at 11% (Aurora. 1999). However, the manufacturing process is complex and more needs to be learned about the properties of the material.

B.5.3 Multijunction cells

As discussed in 7.2 the only photons with an energy level equal to or higher than the cell- materials band-gap can free an electron and create a current. Photons of lower energy levels pass through the cell without being used. A way to be able to use a wider spectrum of the sunlight is to use multijunction cells. This means that cells with different band gaps are stacked on top of eachother, with the cell with the higher band gap on top. The photons that aren’t absorbed by this cell passes through to the next cell with a lower band gap which al­lows it to excite an electron. Multijunction cells often have high material and production costs, but have in laboratories shown efficiencies over 30 % (Aurora, 1999).

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B.6 Research and development

In 1997, approximately 50% of commercial modules were based on single-crystalline silicon cells and 34% on poly-crystalline silicon cells. Amorphous silicon cells constituted about 12% of the market and the remaining 4% were based on CIS- or CdTe-cells (Bulawka, 1998). The crystalline silicon cells will probably continue to dominate the market for several years, but thin films are increasing their market shares, due to the technological development. The re­search photovoltaic technology is focused on increasing cell-efficiency as well as lowering production costs.

B.6.1 Price development

The average price for cells in 1997 was 4.20 $7VVp (Bulawka, 1998), but market growth will lead to future reductions in prices. A market growth of a factor 20-30 will lead to production plants of a scale that could press prices to approximately 1 $/Wp, without any technological breakthroughs. The technologies needed to further halve the prices are close to entering com­mercial production (Hill, 1998).

B.7 Applications

The main PV market is presently in various off-grid applications, although there is a growing and potentially enormous market for grid-tied and building-integrated applications (Bulawka 1998). Off-grid applications can roughly be divided into three application areas. The major application area for the last 30 years has been professional applications, which include tele­communication links, navigation systems, cathodic protection, military equipment etc. An­other major area of applications is the large and growing commercial consumer market where PV technology is used to power battery chargers, lights, fans, calculators and other small electronic devices. The third area is power supply in remote areas, such as cabins or farms. This area also includes the perhaps largest potential market, which is in the developing world where PV technology is used to electrify remote villages.

B.7.1 Market growth

The growth of the PV industry is very strong. 126 MW of PV cells were shipped in 1997, representing a 42 % increase from 1996, the largest increase in 15 years. The global PV in­stalled capacity now exceeds 800 MW (Bulawka, 1998). On average the global sales have been increasing with about 15% every year for the last ten years. At this rate the worldwide production capacity would be 1000 MW by 2010, as shown in figure 1 (Siemens, 1999)

The market growth in 1997 was evenly split between traditional off-grid applications and an emerging grid-tied building-integrated market in Japan. A Japanese government program that promotes solar homes through subsidies and tax incentives resulted in 9400 Japanese homes being were fitted with PV systems in 1997. The goal is to have 70000 solar-powered houses by the year 2000 and phasing out PV subsidies by 2001. In Europe the PV industry increased its production by 56% to 30.4 MW. On November 26 1997, the European Commission adopted a White Paper for a EU strategy and Action Plan entitled: Energy for the future: Re­newable Sources of Energy, which calls for a hundred-fold increase in PV production to 3 GW (Bulawka, 1998).

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Worldwide Production Capacity (MW)

1990 1994 1998 2002 2006 2010

Figure 1. Worldwide production capacity forecast (Siemens, 1999)

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Appendix C: Basis and key assumptions for the economic analysis.

The basis for the economic analysis in chapter 4 is presented as follows in the report ‘Best Practices for Photovoltaic Household Electrification Programs’ published by the World Bank in 1996.

The levelized economic costs of each option are based on the discounted cash flows (in con­stant 1993 US dollars) of the costs for twenty-five years, and consider all related expenses including:

• Capital costs• Installation costs• Operating and maintenance charges• Fuel costs• Replacement costs

The costs of the kerosene and battery alternative are based on the economic costs of kerosene, lighting equipment, batteries and battery charging.

The economic costs of solar home systems are derived from the border costs of the system, plus transportation, distribution, and support services. The calculations also assume a mature two-step distribution system (manufacturer to dealer and dealer to customer) with total sales of about 5000 systems per year and about 200 systems per year per dealer.

The analysis assumes a maximum LV extension of 3 km. MV line-extension costs approach those for isolated grid service at approximately 10 km grid-extension distance.

The equipment and energy source used to provide the area lighting, task lighting and electric­ity for each alternative are given in table C. 1 and key assumptions for the economic analysis are given in table C.2.

Table C.l. Equipment/energy source for rural energy services (Cabraal et al. 1996)Lighting equipment

Rural energy alternative Task lighting Area lighting Source of electricity for appliances

Kerosene/battery Mantle lantern Wick lantern Battery charged at charg­ing station

Solar home system 10-W fluorescent bulb 6-W fluorescent bulb Battery charged with PV module

Isolated grid 40-W incandescent bulb 25-W incandescent bulb Limited distribution pow­ered by diesel genset power stations

Grid extension 40-W incandescent bulb 25-W incandescent bulb Limited distribution con­nected to central grid

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Table C.2. Key assumptions for economic analysis of rural household energy systems - Indo­nesia example (Cabraal et al 1996).Solar Home System Kerosene/batteryEffective sun hours 3,5 hours/day Battery cost $45System size 50 Wp Battery lifetime 2 yearsSystem cost $500 Recharge cost $ 1/chargeModule lifetime 10 years Petromax cost $15Module cost $300 Petromax lifetime 4 yearsBattery cost $50 Petromax SFC 0,06 1/hBattery lifetime 3 years Wick lantern cost $5Bulb lifetime 1 year Wick lantern lifetime 3 yearsBulb cost $3.50 Wick lantern SFC 0,04 1/h

Kerosene cost $0,19/1Isolated Grid Central Grid Extension

Diesel capacity cost $625/kW (220 kW) to LRMC of supply $0.063/kWh$1780/kW (<20 kW) MV line costs $9825/km installed

Diesel Engine SEC 0.3 I/kWh LV line costs $5085/km installedDiesel Fuel Cost $0.19/1 Load coincidence factor 80%Lube oil consumption 0.003 1/kWh Distribution GridLube oil cost $1.41/1 Distribution line require- 5 km/km2 service area

mentsOverhaul cost $1875 (<20 kW) Power factor 0.8

$28830 (220 kW)Overhaul period 18000 operating hours Distribution losses 10%General LV line costs $5085/km installedDiscount rate 12% LV line per transformer 4 km/transformerProductive load capacity 17% Transformer cost $3415/transf. installedfactor

Connection/wiring cost $68/customer

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Appendix D: Questionnaire

QUESTIONNAIRE

1. Name of village:

2. Details about interviewees:a) G male Name:___________________________

Age:______ Ethnicity:_______________________Education level: 0 Primary 0 Class 7 pass 0 SLC Pass 0 College

b) □ femaleAge:______Education level:

Name:__________________________Ethnicity:_______________________D Primary D Class 7 pass D SLC Pass D College

QUESTIONS ABOUT THE HOUSEHOLD

3. Total number of people in the household:4.

Sons DaughtersNumber ofAgesDo they go to school? 0 No

0 Yes, ..........hours per dayD NoO Yes, ..........hours per day

What level of education have you planned for them?

Q Primary 0 Class 7 pass0 SLC Pass D College

D Primaty D Class 7 passD SLC Pass D College

What chores/work do they do? 0 Household,.........hours/day0 Farming, .........hours/dayD............. , .........hours/day

D Household,......... hours/dayQ Farming, .........hours/dayD.............. hours/day

1. Number and kind of animals in the household?Buffalo Cow/Ox Chicken Goat

Number of:

6. How many rooms do you have in your house:7. How many lights:__________8. Light in kitchen:__________9. Households source of income:

Agriculture Trade & Busi­ness

Labor Pension

Income/month

Household expenditures:Agriculture Trade & Busi­

nessLabor Pension

Expenditure/month

QUESTIONS ABOUT THE SOLAR HOME SYSTEM

10. When was your Solar Home System installed:_____

11. Details about system:________________ __________Module Watts Battery No of lights Other appliance

12. Is the appliances connected to the solar system: If no, why:

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13. Who installed the SHS: 0 yourself □ solar company □ other

14. Financial questions:System cost Subsidy Down payment Size and interval of

paymentsInterest-rate Amount left to

pay off

15. Who was the system subsidised by:_________________________________________16. Where do you go to make the monthly payments:_____________________________17. Are you having any problems with the payments: □ Yes □ No18. How could paying for the system have been made easier for you:

1.1 lower down payment 0 lower monthly payment □ fewer trips to the bank □19. Could you have afforded the system without the subsidy: D yes 0 no20. Has paying for the SHS affected your other purchases:

NoYes □ food □ clothing □ school □ entertainment □ other............

QUESTIONS ABOUT OPERATION AND MAINTENANCE

21.Battery Lights Chargecontroller Other

Have you needed to repla­ce any of the following parts.Have you needed to repair any of the following parts.Number of timesCost per itemWhere do you go when you need to replace/repair a partHow much does a new part costHow long is the warranty time

22.

23.24.25.26.27.28.29.30.31.

How often do you check the water level in the battery:every week every month every second month less

Where do you get the distilled water from:____________How long do you think the battery will last:___________Where will you get a new battery:__________What will you do with the old battery when it needs to be replaced:______If something fails, how long time does it take to get it replaced or repaired:How long do you think the solar module will last:___________Do you clean the panel:________Do you have hail protection:_________Has the total cost of your solar electricity been higher than you expected: _

QUESTIONS ABOUT THE ELECTRICITY USE

32. What do you use your solar electricity for:light how many hours per day:___________ any difference from new system: _

would you buy a new battery if lh less light:_______ is there any difference in bedtime:what is the light used for: household work children’s homework r eading

i ncome generating activities o ther___________

TV how many hours per day:___________what do you watch on TV: news sport children’s program movies

e d ucational/informative programs o ther____

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radio

33. Has solar electricity effected the time you spend on income generating activities:no do you think it could have any effect in the future: yes no

if yes, what kind of activity:____________yes what kind of activity:___________

new activity prolonged activityhow much has it increased your total income:_______________what is the new income used for:_____________

34. Do people in your village gather in houses with SHS:yes when, how often and for how long time:__________________no

35. Did you have these gatherings before the SHS:yes when, how often and for how long time:__________________no

36. What do you do during these gatherings:watch TV discussions:______________ literacy classesincome generating activities:_______________ other_____________

37. Has your solar light effected your religious activities:yes in what way:___________________no

38. Has your solar light effected the time your children study/do homework:yes in what way:___________________no

39. Why did you decide to get a SHS:to get better quality of light to get improved indoor environmentto make your children’s studying easier because it is a status symbolto get increased income to reduce your total energy costfor heating and cooking purposes to operate electric appliances o ther__

40. Have your expectations been met:yesno why not:_____________

41. When and where did you first hear about SHS:

42. Have you found any disadvantages with the SHS:noyes what kind:_______________

43. Would you recommend others to get a SHS: yes no

44. Questions about energy-use:

how many hours per day:__________

Source Purpose Quantity/week Quantity/week before SHS

Cost per unit

Fuelwood □ cooking□ heatingD ............

Other biomass j cooking " heating

Kerosene l cooking ^ light

85

Candles □ light□ ............

Dry-cell Batteries □ light□ ............

Diesel □ electricity□ ............

45. Who collects the fuelwood: □ women .........hours/day 0 men .......... hours/dayC girls ..........hours/day □ boys ......... hours/dayU pays wages to get it collected

46. Has the amount of time used to collect fuelwood changed over the years?

47. Is it difficult to find enough fuelwood?

48. What kind of other biomass do you use: 0 agricultural residue □ animal dung49. Who collects/prepares it: □ women .........hours/day □ men .......... hours/day

□ girls ..........hours/day □ boys ......... hours/day□ pays wages to get it

50. Where do you buy kerosene/batteries/candles/diesel?

51. How many hours do you spend cooking per day:___________52. How many hours do you spend collecting water per day:___________

53. Have you noticed any change in the indoor environment since your SHS was installed:□ significant □ some □ none

54. Does anyone in your family have respiratory problems: Dyes □ no Has there been any change since the SHS was installed:□ significant □ some □ none

55. Does anyone in your family have eye problems: □ yes □ no Has there been any change since the SHS was installed:r, significant D some □ none

56. How would you rank the following ( 1 to 5 with 1 as highest rank):Fuelwood supply Education / schoolAvailability of water Good roads and transport systemEducation / school HospitalElectricity ElectricitySufficient agricultural production levels Improved Cook Stove

57. Effect of SHS on the following:positive none negative don’t know

Health and sanitationChild careChildren’s educationTradeHome industryAgriculture

<

86

Appendix E: Tables of data from field study

Table E.a. Pulimarang - miscellaneousEducation Lights/rooms/kit

chenTV/radio Comment

1 army 10/5/yes TV/radio 3 panels, inverter, colour TV2 SLC1 4/6/yes -3 army 3/3/ yes Radio4 9 + army 3/4/ yes Radio5 5 + army 3/4/ yes -6 5 + army 5/6/ yes Radio7 army 7/6/ yes -

8. .

9 army 3/7/ yes Radio (not connected) Problem with connection.10 none , No solar11 none 3/6/no Radio (not connected) Problem with connection12 none No solar - - :13 none 3 lights -14 SLC 5 lights Radio15 8 + army No solar . . ' .16 5 + army 3/3/yes -17 none 5/7/yes Radio18 7 4/3/yes TV Radio broke19 5 + army 3/4/yes Radio (not connected) No connection20 none 3/4/yes Radio (not connected) Can’t connect21 SLC 4/4/yes Radio (not connected) No connection point22 army 3/4/yes Radio (not connected) No connection point23 none 3/4/yes Radio (not connected) Connection point broke24 5 + army 3/5/yes TV, Radio (not connected) Problem with connection

1SLC (School Leaving Certifcate) means 10 years in school

87

Table E.b. Pulimarang - Technical problemsBatteryProblem

No ofbulbs/tubesreplaced

Ballastproblem

Charge-controllerproblems

Panelproblem

Comment

1 - 12 “ yes yes CC repaired for 120 rs.Changed a fuse in the panel

2 yes 5 2 " " Got new battery free after 6 months, now has two 6V Tempo Batteries

3 - 25 1 - -

4 - 15 3 - -5 - 7 3 - -

6 - 6 3 yes - Fuse changed in CC7 - 3 2 - -89 - 10 - - -10 No solar ' - ' 1 -11 - 10 1 - -12 Nosolar - - .y 7 ' -- ; v13 yes 5 1 Since 3-4 months only 1 light works.

CC indicationg low charge since 15-16 months.

14 6 yes Charge controller indicating low charge since three months when only 1 light is on, not when all lights are on.

15 No solar16 - 4 - - -17 yes 4 1 - - Battery not charging since two days.18 yes 8 2 - Has noticed big difference in hours of

light provided.19 - 8 - - -20 - 5 2 - -21 yes 5 - - - Battery won’t charge. 1 cell damaged.22 yes 9 2 - - Battery not fully charged23 yes 8 yes One cell damaged in battery since 2

years. CC repaired once free and is now working but indicates low charge

24 - 5 1 - -

88

Table E.c. Pulimarang - maintenance and serviceHow often do you check the water-level?

Where do you get distilled water?

Do you clean your panel?

Do you have hail-protection?

Time for repair

1 l/2months Dumre yes no 2-3 days2 1/month Dumre yes yes 3-7 days3 1/month Kathmandu no yes/no1 5-20 days4 l/2months Dumre yes yes 7 days5 1/month Dumre yes yes 4-7 days6 1/week Kathmandu yes yes l-7days7 1/month Kathmandu yes no 3 days89 1/month Dumre no yes/no1 7 daysTO. No solar ;11 l/3months Kathmandu yes yes 7 days12 jfo solar - y - . - \-:l- - - -A'/-;.- - .Tl '".I- ....13 l/2months Kathmandu yes yes 3-4 months14 1/month Kathmandu yes yes/no1 10-15 days15 Nosolaf \ ,. %. 1" v*' .16 l/2months Dumre yes no 2-3 days17 l/2months Dumre yes yes 3 days18 1/week Kathmandu yes yes 1-2 days19 l/3months Dumre yes yes 2-3 days20 l/3months Kathmandu yes no 1 month21 l/2months Dumre yes no 6-7 days22 1/3 months Kathmandu yes yes 1-20 days23 1/week Dumre yes yes 3 months24 l/2months Dumre yes yes 1-3 days

1 Has protection against hail but do not use it

89

Table E.d. Pulimarang - Knowledge about costs, life and warranty

How much does a new battery cost

Warranty-time for battery

How much does a CC cost

Warranty time for CC

Warranty­time forballast

Warranty- time forpanel

Panel-life

1 5000 ll Dk1 3 y Dk Dk 30 y2 4-5000 5 y 2500 n Dk 10 y 10-12 y3 5000 5 y Dk Dk Dk 8 20 y4 4000 2 y 2000 Dk Dk none 10 y5 4-5000 Dk Dk Dk Dk Dk Dk6 6-7000 Discount

within 10 y3-4000 Dk Dk 20 y 20 y

7 4000 Jy Dk none Dk 20 y 20 y8 * ' - ' - _ - - - - V - ' ' ,9 Dk Dk Dk Dk Dk Dk Dk10 No solar ... -11 Dk Dk Dk Dk Dk Dk 13 y12 No solar ' V- . ; v .13 Dk Dk Dk Dk Dk Dk Dk14 5-6000 3 y Dk Dk Dk Dk Dk15 No solar - 1 ■16 6-7000 30 y Dk Dk none Dk Dk17 Dk Dk Dk Dk Dk Dk Dk18 4-5000 2y Dk 20 y none 20 y 20-25 y19 Dk Dk Dk Dk Dk Dk Dk20 Dk Dk Dk Dk Dk Dk Dk21 Dk Dk Dk Dk Dk Dk 10 y22 5-6000 1 V 2500 none none 10 y 10-12 y23 5000 3y Dk Dk D k 10 y 15 y24 Dk Dk Dk Dk Dk Dk lOy

1 ‘Don’t know’

90

Table E.e. Rampur - IntervieweesCompany Date of

installationSex/age Education No in

householdLights/rooms/ Light in kitchen

TV/radio/other

1 Lotus Jan 98 M/51 - 11 4/6/yes Radio (not connected)2 Lotus Oct 97 M/45 - 5 4/12/yes Radio3 Lotus Oct 97 M/20 College 2 4/7/yes Radio/cassette/fan4 Lotus Oct 97 M/39 8 9 5/10/yes Color TV5 Lotus Oct 97 M/25 SLC2 2 4/2/yes TV/radio6 Lotus Apr 98 M/65 - 4 4/4/yes -

7 Lotus Oct 97 M/42 College 11 4/8/yes Radio8 Lotus Oct 97 M/53 SLC 8 4/8/yes Radio9 SEC Oct 97 F/22 College 4 2/2/yes Radio10 SEC Oct 97 M/68 - 13 4/7/yes Radio11 SEC Oct 97 M/24 SLC 12 4/7/yes Radio12 SEC Oct 97 M/32 SLC 6 4/14/yes Radio13 SEC Oct 97 F/25 SLC 4 4/8/no Radio14 SEC Oct 97 M/48 SLC 6 4/7/yes -

15 Lotus Oct 97 M/28 SLC 4 4/10/yes TV/Radio16 Lotus Oct 07 M/47 College 10 4/10/yes Radio17 SEC Oct 97 M/28 College 12 4/8/yes Radio (not connected)18 SEC Oct 97 M/38 College 23 4/4/yes Radio19 SEC Oct 97 M/43 SLC 7 4/6/yes Radio20 SEC' Sept 98 M/41 8 5 2/2/yes Radio21 SEC Oct 97 M/40 College 6 4/7/yes TV/Radio22 Lotus Sept 98 M/25 College 6 4/6/yes Radio23 Lotus Oct 97 M/37 SLC 4 4/7/yes -

24 SEC Oct 97 M/46 7 12 4/8/yes Radio25 SEC Jan 98 M/36 College 10 4/4/yes Radio26 Lotus Jan 98 M/25 SLC 9 4/4/yes TV/Radio/cassette27 SEC Feb 98 M/41 SLC 6 4/4/yes TV28 Private Nov 96 M/40 College 5 8/9/yes TV/Radio29 SEC1 Feb 98 M/42 6 4 4/3/yes TV/Radio30 SEC Oct 97 M/52 - 5 4/5/yes Radio31 Lotus Oct 97 M/39 - 4 4/7/yes Radio32 Lotus Oct 97 M/22 College 5 4/7/yes Radio1 Second hand system2SLC (School Leaving Certificate) means 10 years of school

91

Table E.f. Rampur - Technical problemsBatteryProblems

No ofbulbs/tubesreplaced

Otherproblems w. lights

Charge-controllerproblems

Comment

1 Lotus - - - -

2 Lotus - - - -

3 Lotus - - Yes Replaced CC 3-4 times (under warranty) because the battery didn’t charge.

4 Lotus - 3 " “ All three bulbs broke 10-12 days before interview. Village technician out of stock.

5 Lotus - - - -

6 Lotus - 1 - - 1 tube changed under warranty7 Lotus - 1 - - 1 tube changed under warranty8 Lotus - - - -

9 SEC - - - -

10 SEC - - - -

11 SEC 3 Yes Repaired CC in Butwal at no cost but still doesn’t work. Has been without CC for 2 months, light connected directly to battery.

12 SEC - - - -

13 SEC yes Yes Got new battery after 2 months, no cost.CC changed one time but it still doesn’t work. Lights connected direct to battery.

14 SEC - - - -

15 Lotus - 1 Cover Yes One cover brokenCC replaced.

16 Lotus - Cover - Problem with insects inside the cover in fixtures mounted horizontally.

17 SEC - 2 - Yes Fuse changed locally, no charge

18 SEC 4 yes All four tubes broke after 12 monthsCC main on/off switch not working, re­ported to company in Feb 98

19 SEC - - - yes 2 fuses have been changed20 SEC1 " - " - Bought system from friend second hand

Sept 98 (2 months before interview)21 SEC - - - -

22 Lotus - - - -

23 Lotus X 1 - " Tube broke when fixture fell down.Gets less light compared to new system.

24 SEC - - - -

25 SEC - - - -

26 Lotus - 1 - -

27 SEC - - - -

28 Private 1 N/A Privately installed. 75 Wp panel from Siemens, local carbattery, lights from SEC, no Charge Controller.

29 SEC1 - 1 - - Bought system second hand Feb 98.30 SEC yes " " yes Battery replaced under warranty

Fuse replaced in CC31 Lotus - - yes " One light works alone, but when the others

are turned on, this light goes out32 Lotus - - - -

1 Second-hand system

92

Table E.g. Rampur - maintenance and serviceHow often do you check the waterlevel?

Where do you get distilled water?

Do you clean your panel?

Who do you contact when you have prob­lems with your system?

Time for repair3

1 Lotus 1/month Rampur No Company -

2 Lotus 1/month Rampur No Company -

3 Lotus 1/month Rampur Yes Village Technician 1-7 days4 Lotus l/2months Butwal No Village technician 3-4 days5 Lotus l/3months Rampur Yes Village Technician 4-5 days6 Lotus l/2months Rampur No Company 5 days7 Lotus 1/month Butwal No Village technician 15 days8 Lotus 1/month Company Yes Village technician -

9 SEC 1/year Makes No Village technician -

10 SEC 1/month Rampur No Don’t know -

11 SEC 1/week Butwal No Company 1-2 months12 SEC 1/week Butwal Yes Company -

13 SEC 1/month Company Yes Village technician 1-2 months14 SEC 1/week Butwal No Company -

15 Lotus 1/month Sells in shop Yes Village technician 3-4 days16 Lotus 1/week Company No Village technician 15-30 day17 SEC 1/month Butwal No Company 4-5 days18 SEC Never Makes No Company 7 days19 SEC 1/week Butwal No Don’t know 2-3 days20 SEC1 1/month Rampur No Don’t know -

21 SEC 1/month Rampur No Village technician -

22 Lotus 2/year Butwal Yes Company -

23 Lotus Never Don’t know No Company 4 days24 SEC 1/month Butwal Yes Company -

25 SEC 1/month Rampur No Company -

26 Lotus 2/year Company Yes Company 7 days27 SEC 1/month Butwal No Village technician -

28 Private2 3 1/month Butwal Yes Company 4-5 days29 SEC1 l/2month Butwal Yes Don’t know 4-5 days30 SEC 1/week Butwal Yes Company 2 days31 Lotus 1/month Butwal Yes Village technician -

32 Lotus 1/month Sells in shop Yes Village technician -

1 Second-hand system2 Privately assembled system3 Answers only given by interviewees that have had components repaired or replaced

93

Table E.h. Rampur - Knowledge about costs, life and warranty

How much does a new battery cost

Warranty­time for battery

Expectedbattery-life

How much does a CC cost

Warranty time for CC

Warranty­time forballast

Warranty­time for panel

Expectedpanel-life

1 Lotus 12000 2y 2 Y Dk1 Dk 2y 10 y 4-5 y2 Lotus 12000 2y 4 y Dk Dk 2y 10 y 10-15 y3 Lotus 6-7000 2 y 2 y Dk 2y 2 y 8 y 12-15 y4 Lotus 7000 2-3 y 3 y 2500 2y 2y 10 y 10 y5 Lotus 7000 3y 3 y 2500 2y 2y 10 y lOy6 Lotus Dk Dk D k Dk Dk Dk Dk Dk7 Lotus 10 000 3 y 4 y 1000 3 y l y 10 y 10 y8 Lotus 6000 Al ly 1000 3 y 3 y 10 y 20 y9 SEC 6-7000 Dk ly Dk Dk Dk 10 y lOy10 SEC Dk 10 y Dk Dk Dk Dk 10 y Dk11 SEC 6600 ly ly 1300 ly l y 10 y 15 y12 SEC 5000 l y 5 y 4000 ly l y 10 y 15 y13 SEC Dk 2 y 5 y Dk iy l y l y 5 y14 SEC Dk 3 y 3 y Dk Dk 6 m 10 y lOy15 Lotus 5-6000 3 y 4 y Dk 2y 2y 10 y 11-12 y16 Lotus 6000 3 y 4-5 y Dk 3y 2y 10 y 8-9 y17 SEC 5000 2 y 2 y 1500 2y i y 10 y Dk18 SEC 3000 3 y 3 y Dk Dk i y 10 y 20 y19 SEC 3000 3 y 8-9y 1600 Dk 6 m 10 y 25y20 SEC1 2500 Dk 5-6 y 2500 none none 10 y 10 y21 SEC 3000 3 y 1-2 y Dk Dk i y 10 y Dk22 Lotus 5500 Dk 3-4 y Dk Dk Dk 10 y 10 y23 Lotus 5500 Dk Dk Dk Dk Dk 10 y Dk24 SEC 6000 3 y Dk Dk Dk 3 m 10 y Dk25 SEC 6-7000 ly 3-4 y Dk 3 y Dk Dk 7-8 y26 Lotus 5000 2 y Dk Dk 2 V 3 m 10 y 12-15 y27 SEC 6000 3 y 3 y Dk Dk Dk 10 y 10 y28 Private 6000 l y 5 y Dk Dk l y Dk Dk29 SEC1 4000 Dk 5-6 y Dk Dk none 10 y 15-16y30 SEC 4500 2 y 2-3 y Dk Dk None Dk 5 V31 Lotus 6000 3 y Dk Dk Dk 3 m 10 y 15 y32 Lotus 4-5000 ly 1-2 y Dk ly______ 3 m Dk 10-12 y

1 ‘Don’t know’

94

Appendix F: Women’s daily schedule

Sukmaya Dainain, age 47, PulimarangTime Work5 Wake up5-6 Clean house

Fetch waterStart fire

6-7 Feed buffaloMilk buffaloPrepares tea

7-9 Start cookingOther household work

9-10 Eat food10-11 Washing up

Rest11-16 Go to jungle and cut grass or collect fuelwood16-18 Fetch water

Help her husband with his work (tailor)18-20 Prepare evening meal/Cooking20-21 Eat evening meal21-22 Washing up22 Go to bed

Kubisa Adhikari, age 23, Rampur

Time Work5 Wake up5-6 Clean house

Collects the gobar and puts in the gobar mixerFeed the buffaloWash herself

6 - 6.20 Fetch water6.20 - 6.40 Milk the buffalo6.40 - 7.30 Gets fuelwood

Start fireMake tea

7.30-8 Washing up8-10 Preparing food and cooking10- 13 Serves food to the family and the guests in the restaurant13-14 Washing up14-18 Go to jungle and cut grass18-19 Feed buffalo

Cooking19-21 Serves food to family and the guests in the restaurant

Eat food21 -22 Washing up22-23 Goes to bed

95

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