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CHAPTER - 1
INTRODUCTION
1.1 Background of Air Conditioner
An air conditioner (often referred to as AC) is a home appliance, system, or mechanism
designed to dehumidify and extract heat from an area. The cooling is done using a simple
refrigeration cycle. In construction, a complete system of heating, ventilation and air
conditioning is referred to as "HVAC". Its purpose, in abuilding or an automobile, is to provide
comfort during either hot or cold weather.
Benjamin Franklin and John Hadley (1758) conducted an experiment to explore the principle of
evaporation as a means to rapidly cool an object. Franklin and Hadley confirmed that
evaporation of highly volatile liquids such as alcohol and ether could be used to drive down the
temperature of an object past the freezing point of water. They conducted their experiment with
the bulb of a mercury thermometer as their object and with a bellows used to "quicken" the
evaporation; they lowered the temperature of the thermometer bulb to 7 F (14 C) while the
ambient temperature was 65 F (18 C). Franklin noted that soon after they passed the freezing
point of water (32 F) a thin film of ice formed on the surface of the thermometer's bulb and that
the ice mass was about a quarter inch thick when they stopped the experiment upon reaching
7 F (14 C). Franklin concluded, "From this experiment, one may see the possibility of
freezing a man to death on a warm summer's day".
Michael Faraday (1820) discovered that compressing and liquefying ammonia could chill air
when the liquefied ammonia was allowed to evaporate. John 1842 used compressor technology
to create ice, which he used to cool air for his patients in his hospital in Apalachicola, Florida.
He hoped eventually to use his ice-making machine to regulate the temperature of buildings. He
even envisioned centralized air conditioning that could cool entire cities. Though his prototype
leaked and performed irregularly, Gorrie was granted a patent in 1851 for his ice-making
machine. His hopes for its success vanished soon afterward when his chief financial backer died;
Gorrie did not get the money he needed to develop the machine. Vivian M. Sherlock 1855
blamed the "Ice King", Frederic Tudor, for his failure, suspecting that Tudor had launched a
smear campaign against his invention. Dr. Gorrie died impoverished in 1855 and the idea of air
conditioning faded away for 50 years.
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Willis Carrier(1902) designed to improve manufacturing process control in a printing plant, his
invention controlled not only temperature but also humidity. The low heat and humidity were to
help maintain consistent paper dimensions and ink alignment. Later Carrier's technology was
applied to increase productivity in the workplace, and The Carrier Air Conditioning Company of
America was formed to meet rising demand. Over time air conditioning came to be used to
improve comfort in homes and automobiles. Residential sales expanded dramatically in the
1950s.
Stuart W. Cramer (1906) was exploring ways to add moisture to the air in his textile mill.
Cramer coined the term "air conditioning", using it in a patent claim he filed that year as an
analogue to "water conditioning", then a well-known process for making textiles easier to
process. He combined moisture with ventilation to "condition" and changes the air in the
factories, controlling the humidity so necessary in textile plants. Willis Carrier adopted the termand incorporated it into the name of his company. This evaporation of water in air, to provide a
cooling effect, is now known as evaporative cooling.
The increase in use of air conditioning over the years has been implicated as a contributor to
increasing obesity, because appetite naturally decreases in uncomfortably high temperatures.
1.2 Home Air Conditioning around the World
Domestic air conditioning is most prevalent and ubiquitous in developed Asian and Middle
Eastern nations and territories. This especially applies to capitals and urbanized areas where most
of the population lives in small high-rise flats. In these areas, with high summer temperatures
and a somewhat high standard of living, air conditioning is considered a necessity and not a
luxury. Japanese-made domestic air conditioners are usually window or split types, the latter
being more modern and expensive. In Israel, virtually all residential systems are split types. In
the United States of America, home air conditioning is most prevalent in the South/Southwest
and on the East Coast. Central air systems are most common in the United States of America,
and are virtually standard most of times in all new dwellings in most states.
In Canada, home air conditioning is less common than in East Asia and the United States, but it
still quite prevalent. This is especially true of the Great Lakes regions of southern Ontario and
Quebec, where there are especially high humidity levels. While window and split units are
common in these regions, central air systems are the most widespread in Western Canada. Few
Western Canadian homes are built with already-compatible central forced airnatural gas heating
systems, making installing a central air system very simple. The majority of modern urban high-
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rise condominiums built in Canadian cities have air conditioning systems. It is also offered as a
relatively low-cost option on most new built homes. While energy is comparatively very cheap
in Canada, the large size of the average Canadian home and cold winters make heating and
cooling one of the largest household expenses. Canadian summers are uncomfortably hot, but
rarely reach the dangerous temperatures experienced in the United States or Asia. As such, many
Canadians, especially in older homes, simply choose to forgo air conditioning in lieu of simple
fans and evaporative coolers. Aside from the cost, air conditioning is often considered
environmentally unfriendly, even though the majority of household energy in Canada comes
from hydro and nuclear.
In Europe, home air conditioning is generally less common, in part due to higher energy costs
and moderate summer temperatures. Southern European countries such as Greece, on the other
hand, have seen a wide proliferation of home air-conditioning units in recent years. The lack ofair conditioning in residences, residential care homes and medical facilities was identified as a
contributing factor to the estimated 35,000 deaths mostly in Germany, France and Italy.
1.2.1 Air conditioners in Pakistan
Room air conditioner making industry in Pakistan has taken rapid strides during the last few
years. The industry made a modest beginning in 1974, when a state enterprise produced the first
domestic air conditioner. Today 13 companies have the facilities to assemble and manufacture
air conditioners. However, currently, only nine units are in operation. Local production of roomair conditioners increased from 6,754 in 1985-86 to 18,913 in 1990-91, showing an increase of
180 per cent per annum.
____________________________________
Air Conditioning, In Wikipedia, the free encyclopedia. Retrieved from
http://en.wikipedia.org/wiki/Air_conditioning
1.3 Solar Energy
Solar energy is radiant energy that is produced by the sun. Every day the sun radiates, or sendsout, an enormous amount of energy. The sun radiates more energy in one second than people
have used since the beginning of time!
Where does the energy come from that constantly radiate from the sun? It comes from within the
sun itself. Like other stars, the sun is a big ball of gasesmostly hydrogen and helium atoms.
The hydrogen atoms in the suns core combine to form helium and generate energy in a process
called nuclear fusion.
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1.3.1 Solar energy history
People have harnessed solar energy for centuries. As early as the 7 th century B.C., people used
simple magnifying glasses to concentrate the light of the sun into beams so hot they would cause
wood to catch fire. More than 100 years ago in France, a scientist used heat from a solar collector
to make steam to drive a steam engine. In the beginning of this century, scientists and engineers
began researching ways to use solar energy in earnest. One important development was a
remarkably efficient solar boiler invented by Charles Greeley Abbott, an American
astrophysicist, in 1936.
The solar water heater gained popularity at this time in Florida, California, and the Southwest.
The industry started in the early 1920s and was in full swing just before World War II. This
growth lasted until the mid- 1950s when low-cost natural gas became the primary fuel for
heating American homes. The public and world governments remained largely indifferent to the
possibilities of solar energy until the oil shortages of the 1970s. Today, people use solar energy
to heat buildings and water and to generate electricity.
Edmund Becquerel (1838) observed and published findings about the nature of materials to turn
light into energy. They were considered interesting, but were not pursued.
______________________________________________
Secondary Energy Info book, National Energy Education Development Project, Retrieved fromhttp://www.need.org/needpdf/infobook_activities/SecInfo/SolarS.pdf
Auguste Mouchout (1860), was the first man to patent a design for a motor running on solar
energy. Receiving funds from the French monarch, he designed a device that turned solar energy
into mechanical steam power and soon operated the first steam engine. He later connected the
steam engine to a refrigeration device, illustrating that the suns rays can be utilized to make ice!
He was awarded a medal for this.
His groundbreaking research was cut short though. The French renegotiated a cheaper deal with
England for the supply of coal and improved their transportation system for the delivery thereof.
Mouchouts work towards finding an alternative was no longer considered a priority and he no
longer received any funding from the monarch.
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Willoughby Smith (1873), experimented with the use of selenium solar cells after discovering
its sensitivity to light while testing material for underwater telegraph cables.
William Adams (1876-1878), wrote the first book about Solar Energy called: A Substitute for
Fuel in Tropical Countries. Him and his student Richard Day, experimented with the use of
mirrors and was able to power a 2.5 horsepower steam engine. Much bigger than the Mouchout's
0.5 horse powered steam engine. His design, known as the Power Tower concept, is still in use
today.
Charles Fritz (1833), turned the sun's rays into electricity. His solar cell had a conversion rate of
only 1-2%.Another big milestone for solar energy history!
Charles Tellier (1885-1889), who is seen as the father of refrigeration, experimented with a non-
concentrating/ non-reflecting solar motor. He installed the first solar energy system for heating
household water on top of his very own roof. However, his desire to pursue his refrigeration
interests led to his abandonment of solar energy experiments.
Aubrey Eneas (1892-1905), formed the first Solar Energy company - The Solar Motor Co. They
sold the first Solar Energy system to Dr. A.J. Chandler of Mesa, Ariz for $2,160. It was
destroyed less than a week later by a windstorm. They sold a second one to John May, but that
one too, was destroyed by a hailstorm shortly afterwards. This led to the company's downfall.
Henry Willsie (1904) recognized the need to store generated power and built 2 huge plants in
California. He was the first to successfully use power at night after generating it during the day.
Even so, he was not able to make a sale and his company too folded.
Frank Shuman's company (1906-1914) , Sun Power Co, built the largest and most cost-effective
solar energy system covering 10,000 square feet plus. Although it produced a lot of steam it did
not produce enough pressure. Together with E.P. Haines he then formed Sun Power Co. Ltd.
They built an irrigation plant just outside of Cairo, but unfortunately it was destroyed during the
Great War.
Calvin Fuller, Gerald Pearson and Daryl Chaplin of Bell Laboratories (1954) accidentally
discovered the use of silicon as a semi-conductor, which led to the construction of a solar panel
with an efficiency rate of 6%.
The first commercial solar cell was made in 1956 available to the public at a very expensive
$300 per watt. It was now being used in radios and toys.
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During the 1950s-1960s space programs employed solar technologies. In 1958 the Vanguard I
was launched. The first satellite that used solar energy to generate electricity.
The Energy Crisis! .A bit of solar energy history we are all familiar with. Suddenly it became
important to find an alternative form of energy in 1970 as we realized just how reliant we really
are on non-renewable, finite resources like coal, oil and gas for our existence. Solar energy
history was made as the price of solar cells dropped dramatically to about $20 per watt.
A Los Angeles based company called Luz Co (1980-1991), produced 95% of the world's solar-
based electricity. They were forced to shut their doors after investors withdrew from the project
as the price of non-renewable fossil fuels declined and the future of state and federal incentives
were not likely.
_________________________________________
Solar Energy History. Retrieved fromhttp://www.need.org/needpdf/infobook_activities/SecInfo/SolarS.pdf
The chairman of the board said it best: "The failure of the world's largest solar electric company
was not due to technological or business judgment failures but rather to failures of government
regulatory bodies to recognize the economic and environmental benefits of solar thermal
generating plants."
1.4 Statement of ProblemElectricity generation in Pakistan has shrunk by 50% in recent years due to an overreliance on
hydroelectric power. In 2008, availability of power in Pakistan falls short of the population's
needs by 15% Pakistan was hit by its worst power crisis in 2007, after the assassination of
Benazir Bhutto and the following riots. Production fell by 6000 Megawatts and massive
blackouts followed suit. The blame was laid on the then president, Pervez Musharraf, and was in
his defeat. Load Shedding and power blackouts have become severe in Pakistan in recent years.
The main problem with Pakistan's poor power generation is raising political instability, together
with rising demands for power and lack of efficiency.
In this fast world in order to survive it is very important for everyone to go for solar energy. The
huge change in the world and economy including energy crisis recession is very rapid. The
energy crisis in Pakistan and the severe condition of electric shortage has leaded us to situation
of disaster.
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The purpose of this study is to find out whether acceptance of solar energy and solar air
conditioner can be adapted in the lifestyle of Pakistani people or not. There have been many
improvements and revolutionary enhancements in other categories of products but comparatively
solar market has not seen any big change since many years in Pakistan.
The air-conditioning industry is also very important for a country like other industries of the
world. The air-condition business is very much in other countries, now in last four to six years
this industry is also become very common in Pakistan as well. The air-conditioning market is
totally captured by the China and Malaysia, and we import most of air-conditioning brands from
these countries & we pay extra duties for importing these equipment. Air-conditioning
equipment are split A/C, Chillers, Air Handing Units, Fan Coil Units, Valves, Pumps, Building
Management Systems, Cooling Towers and Fans etc. these items are used in central Air-
conditioning systems in commercial projects. We do not have enough local brands in the air-conditioning field. This is the reasons the prices of the air-conditioning equipment has increased
very much. The present situation is the recession situation and almost every country suffers in
this problem. Almost every industry of all the country is affected by this recession period. Air-
conditioning industry is also very affected from this recession period. The prices of air-
conditioning equipment are also raise due to the inflation in dollar prices. Therefore the air-
conditioning industry is very affected and firms started to downsizing. The recent example of
this is the L.G firm from Pakistan cut of its size and kick off 400 hundreds employees. In
addition the so many projects in government, semi-government & private sector have stopped or
slowed. Same situation in all the countries of the world. In 2008 almost three to four times prices
of air-condition equipment revised. The other reasons also behind in this price fraction e.g. duty
& tax on imported items is also raised in Pakistan. Due to that so many international brands are
less marketed than local brands. People switch over on other alternatives.
1.5 Objectives
The objectives of the study are as follow:
To study whether solar air conditioners are accepted in the market.
Finding out the main problem of costumers and deriving a solution regarding prices and
availability.
Study the factors affecting the acceptability of solar air conditioners in the market.
1.6 Hypothesis
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Ho1: Acceptance of solar air conditioners is ignored due to its knowledge to costumers.
H11: Solar Air conditioners will be accepted due to the knowledge of costumers.
Ho2: There is a significant relationship between acceptance and risk taking.
H12: There is no significant relation between acceptance and risk taking.
H03: There is no significant relation between acceptance and price.
______________________________
Electricity Sector in Pakistan. In Wikipedia, the free encyclopedia. Retrieved fromhttp://en.wikipedia.org/wiki/Electricity_sector_in_Pakistan
H13: There is a significant relation between acceptance and price.
1.6.1 Defining the variables
You won't be able to do very much in research unless you know how to talk about variables. A
variable is any entity that can take on different values.
1.6.1.1 Dependent variable
The dependent variable in the study is the acceptance of the product.
1.6.1.2 Independent variables
The following are the independent variables:
Knowledge of the customer.
Price.
Risk taking.
1.7 Theoretical Framework
A theoretical framework is a collection of interrelated concepts, like a theory but not necessarily
so well worked-out. A theoretical framework guides your research, determining what things you
will measure, and what statistical relationships you will look for.
Surprisingly, theoretical frameworks are also important in exploratory studies, where you really
don't know much about what is going on, and are trying to learn more. There are two reasons
why theoretical frameworks are important here.
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It is very important to study the independent variables and its relation to the dependent variable
as the study is about the factors affecting the acceptability of solar air conditioners in the market.
1.7.1 Knowledge of the customer
Knowledge of the costumer is the most important factor for the acceptability of the solar airconditioner in market. This relates to any segment and product in market, if the costumer doesnt
has any knowledge of the product he or she may not buy it. Knowledge about the product or
technology gives confidence and courage to make a decision for the product. This factor will be
further discussed in chapter 4 in the form of questionnaire in which respondents were asked
about the knowledge of solar technology. Product Knowledge comes in various forms. Product's
features for its intended purpose, what goes with what, and how a product works.
Many companies do have knowledge of their customers, but difficult to share or analyze and
often it is incomplete. Moreover knowledge of the product allows the costumer to bargain and
select the best according to its desire. You can justify your selection according to the knowledge
you have about the product and the need you have.
1.7.2 Price
Price is an important factor in the acceptability of a new product in market. Nowadays we see
new products launching in market with huge amount of retail prices which somehow is now
affordable to many consumers who are also willing to buy it.
In this period of recession and downsizing costumers make it very clear and be careful on what
they are buying and why they are buying. In order to penetrate in the market price should be less
but to that extent in which the production and promotion are catered.
For this reason a questionnaire was distributed among 120 respondents to know their preferences
over the buying decision. For that their monthly income according to their buying decision were
taken and plotted on a graph which can help in understanding the buying or decision making
factor according to the monthly income they have. This research is further discussed in chapter 4.
1.7.3 Risk taking
Risk concerns the deviation of one or more results of one or more future events from theirexpected value.
Technically, the value of those results may be positive or negative. In studying decision making, it is
critical to examine both the processes by which decision alternatives are identified, evaluated, and
managed, and the actual selecting mechanism that leads to the decision choice.
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The biggest risk a person takes is that he trusts that the product would satisfy his needs in proportion to
the amount of money he pays for the product. There are other risks such as not knowing the range of
products available, not knowing about substitutes, the opportunity cost of buying this product could be
greater than buying something else thats required to a greater extent. Even the buying situation differs.
Each time the buyer is to take a purchase decision, it may or may not be the same as the previous one.
According to the defined independent variables and dependent variable following theoretical
framework has been developed which include the relation between price, knowledge of
customer, innovation of product and risk taking of the customer with the acceptance of the
product as shown in the figure (1.1).
Fig 1.1: Theoretical Framework
1.7.4 Classification of study
This study is inductive as its purpose is to find out the rate of acceptance in relation to the
innovation of a product as well as finding out the key terms which would help in making a strong
and successful marketing plan for the launch of this product.
Whether the costumers accept the solar air conditioners in market. And if they dont then what
will be the main reason of ignoring an innovative item in market having beneficial characteristics
for the future.
1.7.5 Explanation of the established relation with the variables
The increased use of the air conditioners will affect the electricity supply in the country
because it is very difficult to control the production process in the country.
If the income levels of the people are high then the people will buy luxury items or those
who can afford them.
Price
Knowledge of CostumersACCEPTANCEACCEPTANCE
Risk Taking of Costumers
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The worse scenario of the electricity problem in Pakistan can be a key way to launch
solar air conditioners.
There can be problems regarding the acceptance of innovation.
Lack of complete information of the product can also be a problem to its penetration inmarket.
Some people are not risk takers and they tend to see if the product is a success in market
or try to make their buying decision on the basis of word of mouth and popularity of the
product.
CHAPTER 2
LITERATURE REVIEW2.1 Introduction to Load Shedding Problem in Pakistan
Electricity in Pakistan is generated, transmitted, distributed and retail supplied by two vertically
integrated public sector utilities: Water and Power Development Authority (WAPDA) for all of
Pakistan (except Karachi), and the Karachi Electric Supply Corporation (KESC) for the City of
Karachi and its surrounding areas. There are around 16 independent power producers that
contribute significantly in electricity generation in Pakistan.
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For years, the matter of balancing Pakistan's supply against the demand for electricity has
remained a largely unresolved matter. Pakistan faces a significant challenge in revamping its
network responsible for the supply of electricity.
Electricity generation in Pakistan has shrunk by 50% in recent years due to an overreliance on
hydroelectric power. In 2008, availability of power in Pakistan falls short of the population's
needs by 15% Pakistan was hit by its worst power crisis in 2007, after the assassination of
Benazir Bhutto and the following riots. Production fell by 6000 Megawatts and massive
blackouts followed suit. The blame was laid on the then president, Pervez Musharraf, and was
instrumental in his defeat. Load Shedding (deliberate blackouts) and power blackouts have
become severe in Pakistan in recent years. The main problem with Pakistan's poor power
generation is raising political instability, together with rising demands for power.
Table 2.1
Supply and Demand of Electricity in Pakistan
Source: Private Power and Infrastructure Board - Govt. of Pakistan
Note: All values in the table are in MW (Mega Watt).
In table (2.1) the short run addressing difficult challenges such as the demand for a parity of
treatment to both domestic and foreign investors must make some difference by way of attracting
investors across the board. Given the growing demand for electricity, foreign investors musthave a role in helping Pakistan meet this challenge.
But the challenges faced by Pakistan are by no means easy. It is indeed the case that the business
of reforming the electricity supply network is just not about short term and often incomplete
measures of the kind that Pakistanis have been accustomed to.
Even if Pakistan successfully set aside the vast funds which are necessary to finance such a turn-
around, the time taken to ensure the supply of all the technical ingredients must in itself make the
Years 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Existing Generation 15903 15903 15903 15903 15903 15903 15903 15903 15903 15903 15903 15903 15903
Proposal committed
generation
530 4235 7226 10115 10556 13307 13520 14607 16134 18448 18448 18448 18448
Total
Existing/Committed
Generation
16484 20138 23129 26018 26459 29210 29423 30510 32037 34351 34351 34351 34351
Expected Available
Generation
13146 16110 18503 20814 21167 23368 23538 24408 25630 27481 27481 27481 27481
Demand 16484 17868 19352 20874 22460 24162 25919 28029 30223 35504 34918 37907 41132
Surplus/deficit
Generation
-3338 -1758 -849 -60 -1293 -758 -2381 -3621 -4593 -8023 -7437 -
10426
-
13651
http://en.wikipedia.org/wiki/Benazir_Bhuttohttp://en.wikipedia.org/wiki/Pervez_Musharrafhttp://en.wikipedia.org/wiki/Rolling_blackouthttp://en.wikipedia.org/wiki/Benazir_Bhuttohttp://en.wikipedia.org/wiki/Pervez_Musharrafhttp://en.wikipedia.org/wiki/Rolling_blackout8/6/2019 Solar Thesis Final Final
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task formidably challenging. In the environment which prevails across the world today, there is
already a considerable line-up of both individuals and countries which have placed orders to buy
new equipment. Indeed, Pakistani officials are all too aware of international market conditions
which only add to the difficulty surrounding their task.
Though sorting out global market conditions are just not in reach of one country alone, other
matters are indeed within Pakistan's grasp. These include the need to turn around popular habits
which hardly help to curtail the usage of electricity, with wastages and deliberate inefficiencies
being the principal factors.
_________________________________________
Supply and Demand Proposition 2008-2020. Retrieved from http://www.ppib.gov.pk/SupplyDemand.html\
Electricity Sector in Pakistan. In Wikipedia free encyclopedia. Retrieved fromhttp://en.wikipedia.org/wiki/Electricity_sector_in_Pakistan
2.1.1 Electricity - consumption: 72.2 billion KWH (2007 EST.)
Fig 2.1: Electricity Consumption
http://www.ppib.gov.pk/SupplyDemand.html/http://en.wikipedia.org/wiki/Electricity_sector_in_Pakistanhttp://www.ppib.gov.pk/SupplyDemand.html/http://en.wikipedia.org/wiki/Electricity_sector_in_Pakistan8/6/2019 Solar Thesis Final Final
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The above figure (2.1) consists of the total electricity consumed in the previous years with its
date of information including the percentage changes occurred in the past years.
Table 2.2
Electricity Consumption
Years Electricity- Consumption Rank Percent Change Date of Info
2003 62,270,000,000 34 2001
2004 62,270,000,000 35 0.00% 2001
2005 52,660,000,000 39 -15.43% 2003
2006 71,540,000,000 34 35.85% 2003
2007 74,540,000,000 33 4.31% 2004
2008 68,400,000,000 34 -8.34% 2006est.
2009 64,400,000,000 34 0.00% 2007est.
2010 72,200,000,000 36 5.56% 2007 est.
Table (2.2) is the tabular form of the figure (2.1) which shows the estimated electricity
consumption in KWH.
__________________________________________
CIA World Fact book- February 19, 2010. Retrieved from
http://www.indexmundi.com/pakistan/electricity_consumption.html
2.1.2 Electricity - production: 90.8 billion KWH (2007 EST.)
https://www.cia.gov/library/publications/the-world-factbook/fields/2042.htmlhttp://www.indexmundi.com/pakistan/electricity_consumption.htmlhttps://www.cia.gov/library/publications/the-world-factbook/fields/2042.htmlhttp://www.indexmundi.com/pakistan/electricity_consumption.html8/6/2019 Solar Thesis Final Final
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Fig 2.2: Electricity Production
The above figure (2.2) shows the electricity production done in the previous years including its
percentage changes and ranking in the world.
Table 2.3Electricity Production
Years Electricity- Production Rank Percent Change Date of Info
2003 66,960,000,000 36 2001
2004 66,960,000,000 37 0.00% 2001
2005 75,270,000,000 33 12.41% 2003
2006 76,920,000,000 35 2.19% 2003
2007 80,240,000,000 32 4.32% 2004
2008 93,260,000,000 32 16.23% 2007est.
2009 93,260,000,000 32 0.00% 2007est.
2010 90,800,000,000 32 -2.64% 2007 est.
Table (2.3) is the tabular from of the above figure (2.2) which shows the estimated electricityproduction in KWH.
______________________________________
CIA World Fact book- February 19, 2010. Retrieved from
http://www.indexmundi.com/pakistan/electricity_production.html
2.2 Total Installed Capacity
Total installed generation capacity witnessed an increase of 2.1 percent during 200910 against
the 1.0 percent growth in corresponding period last year with the share of 31.6 percent in total
installed capacity during 200910, private sector witnessed the prominent growth of 7.1 percent
in its installed capacity during the period under review. On the other hand, installed capacity of
WAPDA declined by 0.5 percent during JulyMarch 200910. Furthermore, the installed
capacity of KESC stood at 1,955 MW during the period under review.
Table 2.4
Total Installed Capacity
S.NO Power Company Installed
capacity
Share (%) Installed
capacity
2009-10
Share (%) Change
1 WAPDA 11,454 57.9 11,399 5605 -0.5Hydel 6,555 57.2 6,555 57.5 0.0
Thermal 4,899 42.8 4,844 42.5 -1.1
https://www.cia.gov/library/publications/the-world-factbook/fields/2038.htmlhttp://www.indexmundi.com/pakistan/electricity_production.htmlhttps://www.cia.gov/library/publications/the-world-factbook/fields/2038.htmlhttp://www.indexmundi.com/pakistan/electricity_production.html8/6/2019 Solar Thesis Final Final
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2 IPPs 5,954 30.1 6,374 31.6 7.13 Nuclear 462 2.3 462 2.3 0.04 KESC 1,910.0 9.7 1,955 9.7 2.4
Total 19,780 100.0 20,190 100.0 2.1
Source: Hydrocarbon Development Institute of Pakistan & PEPCO
In further part of the report we will study the solar energy system, its types and how it is is madeincluding the solar air conditioner which we will design for the Pakistan market.
2.3 Solar Energy System
Solar power or Solar Energy is the energy we derive form from rays and heat of sun. It is in
use from the time immemorial. However it is now that mankind has realized its importance as a
safe and inexpensive energy source.
Pakistan has high potential of renewable energy sources. A very large part of the rural
Population does not have the facility of electricity because they are either too remote or it is
found too expensive to connect their villages to the national grid station. Pakistan being in the
sunny belt is ideally located to take advantage of solar energy. This energy sources is widely
distributed and abundantly available in the country. During last 15 years Pakistan has shown
quite encouraging progress in the use of photovoltaic cells. Currently electrical power derived
from solar energy is being used is being used in some public parks. These include Khalid bin
Waleed Park in Peshawar and the Race Course Park in Rawalpindi. The Public Health
department has installed solar water pump for drinking purposes in some parts of the country.
Both public and private sector are playing their role.
2.4 Governments Role
The Pakistan Electric Power Company (PEPCO) has sought a 48 percent increase in power tariff
to bridge the Rs 180-billion gap in power production costs and the money paid by utility
consumers, official sources told Daily Times on Tuesday.
This demand has put the economic managers in a difficult position. They are exploring all
possible options, including tariff restructuring through elimination of subsidies, to bridge the gap
in power production costs and tariff recovery. Other options to overcome the 48-percent deficit
include introduction of major reforms to eliminate line losses, electricity theft and inefficiency in
the system through investment to upgrade obsolete equipment.
However, the economic managers strongly feel that a mix of reforms, such as partial increase in
power tariff, reduction in all kinds of losses and elimination of subsidies can help reduce the Rs
180-billion gap. The government believes that it is extremely difficult to consider any increase
in electricity prices, even though there is immense pressure to eliminate subsidies.
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The sources said that government officials would try to convince the International Monetary
Fund (IMF) that any increase in power tariff in these circumstances is not possible.
Technical discussions with the IMF are currently underway in Washington for the extension of
the deadline to meet these conditions.
_____________________________________
Pepco wants 48% Hike in Tariff Prices. September 01, 2010.Retrieved from
http://www.dailytimes.com.pk/default.asp?page=2010\09\01\story_1-9-2010_pg7_28
CHAPTER-3
RESEARCH METHODOLOGY
3.1 Research Design
A primary interpretation of design research is that it is concerned with undertaking research intothe design process. Secondary interpretations would refer to undertaking research within the
process of design. The overall intention is to better understand and to improve the design
The objective of this study is to find out whether Acceptance of a product by customer has any
significant relationship with the knowledge of costumer, its personal status, the decision making
power etc.
This study will eventually help us to find out the key elements that can help us make a strong
marketing plan to launch solar air conditioners in Pakistan and make it a consumer product and
available for everyone.
3.2 Population of the Study
3.2.1 Population
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In present study, the population is general public who uses air conditioners in summers and the
buying is at its peak in summers due to new house development and according to their needs and
wants. Our sample population for the project included include Model Town, DHA, Gulberg,
Shadman and Township. A questionnaire was developed which was costumer based and filled
from different locations in Lahore. There were a number of 120 questionnaires that were filled
by the respondents themselves.
3.3 Sampling Strategy
Keeping in view, the type and nature of study I selected Random sampling. Therefore, 120
people are forming the sample of my study. Questionnaire was costumer based because it is well
said that costumer is always right. My focus was totally on costumers because this is the only
source of information from which we can know what they want. If the customer wants its retailerautomatically pursue it because innovation is always done to resolve the current issues faced by
the users of a product by improving it in all those aspects.
3.3.1 Variables
A variable is anything that can be changed or it is a quantity that may have number of different
values.
The research is focused on the variable
1. Dependent Variable
Acceptance of the Product.
2. Independent Variable
Knowledge of costumers
Risk taking
Price
3.4 Tools for Data Collection
The success of a researcher depends on the data he has collected. The collection of accurate data
depends upon the careful construction of a tool for data collection. For this particular study it is
considered appropriate to use questionnaire.
3.4.1 Pretesting
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Pre-testing for the present study was done having almost similar qualities as to which were to be
studied later. After pre-testing some changes were made on the basis of responses. There were
some questions that didnt work. Researcher modified the questions; some new questions were
also added and then gave the schedule final shape. The language of the questions was on the
level of understanding of respondents.
3.5 Data Collection
3.5.1 Classification of data
Classification of data refers to questions about demographics of respondents including
information as age, education level, marital status and income.
My questionnaire included Age, Gender and Monthly Income, Educational Qualificationquestions which were asked in the beginning of the questionnaire.
I developed questionnaires for Customer and personally administered to 120 Customers. First of
all I introduced myself and significance of the innovative product that is about to be launched. I
also explained the purpose of the study and it took me 10 minutes on average to complete one
questionnaire.
3.5.2 Variables and measures
The questionnaire consisted of 15 questions. First five questions tapped personal information .
Next five questions were multiple choices regarding their frequency of using the product and
modes of advertisement that are most influential according to them. Remaining questions
focused on preference and acceptability of the Product.
3.6 Interpretation of Data
After survey of the Air conditioner markets and fulfillment of questionnaire by customers, Data
is analyzed. In this study bar charts and tables are used for statistical analysis.
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CHAPTER - 4
DATA ANALYSIS
Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the
goal of highlighting useful information, suggesting conclusions, and supporting decision making.
Data analysis has multiple facets and approaches, encompassing diverse techniques under a
variety of names, in different business, science, and social science domains.
This study is particularly about the launch of an innovative product and its rate of acceptance by
the customers. By conducting this research we would be able to map out the best Marketing Plan
possible to launch this product.
I made questionnaires to carry out this research which was costumer based and for analyzing the
data I am using Tables and Bar Charts.
4.1 Costumer Data Analysis
This data consists of general information about the sample by which one can analyze the effects
of other variable on the acceptance of this product. The brief study of the research findings of the
sample includes Gender, Age, Monthly Income, For the fulfillment of these questionnaires,
researcher went to many places present in Lahore. No, particular group was selected to fill out
these questionnaires all the questions were answered by random respondents.
4.1.1 Respondents profile
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The respondents profile was basically the personal information of the respondent which
included the age group, marital status, their income per month, educational qualification etc.
Table 4.1
Gender Group
Gender Frequency Percent
Male98 81.66
Female22 18.33
Total120 99.99
The above table shows the gender distribution of the respondents which is approx 81 % male
and 18% female .Females and at a working level was hard to locate and fill question still the best
was done to approach them and include a working woman in the sample to know the acceptance
of solar air conditioners in market. A graphic representation of the above table is as follow:
Fig 4.1: Gender Group
The above figure shows maximum value in male which is 81.66%.
Table 4.2
Age Group
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Age Group Frequency Percent
Less than 18 Years0 0
18-24 Years 30 25
25-31 Years 78 65
32-45 Years 12 10Total 120 100
The above table indicates the age group of the respondents in frequencies and percentages 18 to
24 years of respondents were 25%, 25 to 31 age of respondents were of 65% and 32 to 45 year
of respondents were of 10 percent.
Fig 4.2: Age Group
Above figure shows the age group and maximum results were in the years from 25 to 31 having
65% responses.
Table 4.3
Educational Qualification
Education Frequency Percent
Intermediate 0 0
Undergraduate 2 1.66
Graduate 76 63.33
Post Graduate 42 35
Total 120 99.99
The above table (4.3) is regarding the educational qualification of the respondents which was
necessary to see according to their qualification and their income per month what is their
decision power, what is their acceptance to innovation. 1.66% was gathered to be under graduate,
63.66 % of the respondents were graduate and found to be having a job life and some were doing
their own business, while post graduate were 35%. The questionnaire was distributed among
literate and educationally qualified a respondent which was necessary because such people have
chances of accepting and adapting innovation which is the exact target.
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Fig 4.3: Educational Qualification
The above figure 4.3 shows the educational qualification and 63% in graduate.
Table 4.4
Marital Status
Marital Status Frequency Percent
Single34 28.33
Divorced 0 0Married
6 5
Married with Kids80 66.66
Total120 99.99
Table (4.4) indicates the marital status of the respondent we collected that many of them were
married with kinds and had a percentage of 66.66% which was the highest among the sample
respondents then married respondents were 5% and single respondents were 28.33% which
helped us to understand that married person with kids have a strong buying and responsible
buying power. Their questionnaire was thoroughly evaluated regarding their answers to the
questions of acceptability and consumer behavior which are mentioned in the further end of the
questionnaire evaluation.
Fig 4.4: Marital Status
Table 4.5
Income per Month
Income Per Month Frequency Percent
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Less than 20,000 4 3.33
Rs.20,000 Rs.39,999 67 55.83
Rs.40,000- Rs.59,000 Rs 15 12.5
Rs.60,000-Rs.79,999 19 15.83
Rs.80,000 or more 15 12.5
Total 120 99.99
The above table (4.5) indicates the income per month of the respondent with options distributed
in terms of cash and segmented to know in which section they lie. The frequency section
represents the quantity of the respondents lying in that segment. The percent is the percentage of
the frequencies taken and counted from the questionnaire. This helps to understand the income
per month and the expected saving which is the key answer to the acceptability and risk taking of
the costumer to buy a solar air conditioner.
Fig 4.5: Income per Month
Figure (4.5) represents the income per months of the respondents.
Table 4.6
Availability of Air Conditioners
Table (4.6) indicates the percentage and frequencies of the costumers who have air
conditioners at their place. The question had only two options which were yes or no.
Fig 4.6: Availability of Air Conditioner
Options Frequencies percentsYes 120 100No 0 0
Total 120 100
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The above figure (4.6) is indicating the availability of air conditioners which was a general
question and results were 100% in the section of yes.
Table 4.7
Type of Air Conditioner
Options Frequencies Percents
window 18 15
split 102 85
Total 120 100
Table (4.7) shows the type of air conditioner which the respondents had. There were also a
number of 120 frequencies in which 15% of the sample respondents had window AC and 85% of
the sample had split air conditioners.
Fig 4.7: Type of Air Conditioner
The above figure (4.7) shows the type of air conditioner. There were two options and the
maximum answers were in the favor of split air conditioner having a percentage value of 85%.
Table 4.8
Usage of Air Conditioner in Months
Options Frequencies Percent
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3-5 months 14 11.66
5-7 months 66 55
7-9 months 36 30
More than that 4 3.33
Total 120 100
The table above table (4.8) represents the usage of air conditioners by the respondent in months
in a year. This had the options of months in patches. 11.6% respondents use from 3 to 5 months ,
55% respondents use air conditioners from 5 to 7 months, 30 percent respondents use from 7 to 9
months and 3.33 respondents use more than that . a graphic representation of the table is as
follow.
Fig 4.8: Usage of Air Conditioner in Months
The above figure (4.8) represents the usage of air conditioner monthly in which maximum
answers were in 5 to 7 hours having percentage value of 55% among the options.
Table 4.9
Capacity of Air Conditioner
Options Frequencies Percent
1 ton 68 56.6
1.5 tons 46 38.33
2 tons 6 5
4 tons 0 0
6 tons 0 0
More than that 0 0
Total 120 100
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Table (4.9) represents the capacity of cooling unit capacities the respondents have in the sample.
56% of the respondents have 1 ton split air conditioners, 38.33 % have 1.5 ton of air conditioner
and 5% of 120 respondents have 2 ton air conditioner. A graphical representation of the above
table is as follow:
Fig 4.9: Capacity of Air Conditioner
Above figure (4.9) shows the capacity of air conditioners having maximum value of 56.6% of 1
ton air conditioner.
Table 4.10
Daily Hourly Usage of Air Conditioners
Options Frequencies Percent1-3 hours 0 0
3-5 hours 19 15.83
5-7 hours 44 36.66
7-9 hours 38 31.66
9-12 hours 16 13.33
more than that 3 2.5Total 120 99.98
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Table (4.10) shows the hourly usage of air conditioner daily which helped us to understand the
importance of the costumer related to air conditioners, which was a very good vacuum to be
filled in the market through solar air conditioners. 15.83 % of the respondents use for 3 to 5
hours , 36.66 % of the respondents use from 5 to 7 hours , 31.66% of the respondents use from 7
to 9 hours , 13.33% of the respondents use from 9 to 12 hours and 2.5% respondents use more
than that daily. A graphic representation of the above table is given below:
Fig 4.10: Daily Hourly Usages of Air Conditioners
The above figure (4.10) shows daily use of air conditioners.
Table 4.11
Knowledge Regarding Solar Energy
Options Frequencies Percent
Yes 113 94.16
No 7 5.83
Total 120 99.99
The above table was a simple question regarding the knowledge of the solar energy whether
someone knows about solar energy or not. The result came out to be very interesting when the
samples were collected and the frequencies were counted almost 94% of the respondents knew
about the solar energy and almost 6 % of them didnt know about it. A graphic representation of
the table is given below:
Fig 4.11: Knowledge Regarding Solar Energy
The above figure (4.11) shows the knowledge of the costumers about the solar energy which was
unexpectedly very good having 94.16% knowhow of the technology.
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Table 4.12
Acceptance of Solar Air Conditioners
Option Frequencies Percent
Yes 97 80.83
No 23 19.16
Total 120 99.99
The above table (4.11) was again a simple question regarding the acceptance of solar air
conditioners at their place. The results were very good in the favor of the solar air conditioner
system. 80.83% respondents accepted to have a solar air conditioner at their place whereas
almost 20% respondent ignored saying NO.
Fig 4.12: Acceptance of Solar Air Conditioners
The above figure (4.12) represents the preferences of having solar air conditioners. The result
shows 80.8% in the favor of having solar air conditioners by the respondents.
Table 4.13
Regarding Consumer Behavior
Options Frequencies Percent
yes 97 80.83
No 6 5
May be I'll buy. 17 14.16
Total 120 99.99
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Table (4.13) was a question which was regarding the customer satisfaction and consumer
behavior. It was regarding the after sale services and warranty of the parts.
The accepted percentage remained same which was 80% while the decision of No changed a
slight bit and respondents liked to select the option that May be Ill buy which shows thatrespondents and the sample which we approached did seem to have keen interest in having a
solar air conditioner at their place. The above table helped us to visualize the decision making of
the respondent. A graphic representation of the above scenario is given below:
Fig 4.13: Regarding Consumer Behavior
The above fig (4.13) represents the priority of the respondents buying related to service and
warranty.
Table 4.14
Influential Source of Advertisement
Mode of Advertisement Frequency Percentage
TV 62 51.66
Radio 6 5
Hoardings 30 25
Print 22 18.33
Total 120
The above table (4.14) is a very important key point to evaluate that what source is the most
influenced to the respondent in the form of advertisement. This is also a form of consumer
behavior and marketing scheme. Our questionnaire showed results mostly in TV commercial
which was 51.66% almost 5% of the respondents said that they get influenced by radio as the
narration seems to be appealing, 25 % of the respondents agreed on hoardings and 18% of the
respondents agreed on print media which include brochure news paper or wallpapers etc. A
graphic representation of the above scenario is given below:
Fig 4.14: Influential Source of Advertisement
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Table 4.15
Most Important Factor When Costumers Buys a Product
Factors Frequency Percent
Price 17 14.16Quality 27 22.5
Uniqueness 32 26.66
Guaranty 44 36.66
Total 120 99.99
Table (4.15) represents the decision making of the respondent depending upon their own priority
of characteristics the questionnaire and frequency detail showed that most of them demanded
guaranty of the product in terms of after sale services and warranty which turned out to be 36%,some agreed on the uniqueness which was almost 26 %, quality was of a consideration also of
about 22%, price doesnt seems to be a matter to the respondents which was 14%. This shows
that the respondents or consumers demand uniqueness and mostly guaranty in their product and
price is not that big issue. A graphical representation of the above table is given below:
Fig 4.15: Most Important Factor When Costumers Buys a Product
Figure (4.15) represents the buying decision of the respondent in terms of quality, uniquenessguaranty and price. Every option had average responses.
4.2 Price Analysis
In this section we will study the price of what the solar air conditioner costs and its comparison
with the electricity bill we give against the units consumed by the split air conditioner already
fitted in our homes. Prices or the cost in the form of bills including domestic and commercialusage will be tested. Afterwards we will try to clear our variable of price in relation to the
acceptance of solar air conditioners in our environment. I have gathered much amount of data to
study regarding the cost of a solar air conditioner and the domestic and commercial bill we pay
monthly on average usages.
In order to calculate the units per month , cost per month, GST and then the total cost on very
deep research regarding power energy and mathematics I came to know that the calculations
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were not that difficult. First of all we should know the amperes and watts of the air conditioners
according to their BTU. The calculations are based on both domestic and commercial usage of
air conditioner and then we will evaluate the pricing and analysis of the investment of the solar
air conditioner.
4.2.1 Calculating power in kilo watts
Formula:
A typical formula which we studied in physics in matriculation or in our earlier studies. In order
to calculate wattage of any product we need to know its ampere which it uses and multiply it
with the volts.
Power = Volts * Ampere
P = V I
Where
P = Power
V = Volts
I = Amperes
Power on the left has the unit of watts so on the right side of the equation we have two variables
volts and amperes.
Table 4.16
Calculating Power in Kilo Watts
Note: Kilo watts are calculated by dividing the watts by 1000.
Tons Amperes Volts Watts Kilo watts
/KW
1 6 220 1320 1.32
1.5 10 220 2200 2.2
2 15 220 3300 3.3
1.5 ton window 19 220 4180 4.18
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4.2.2 Calculating units consumed per month
In order to consume units per month we have to calculate units per day. Actually the units
consumed are the watts per hour consumed. E.g. assuming the case of a 1 ton air conditioner it is
1.32 KW. If it is turned on for 6 hours per day it consumes 7.92 units or kilo watt hour (KWH)
per day which is approximately 8 units. And if we want to calculate the same consumption permonth we multiply it with 30 or 31 to know the units consumed per month.
For example:
Watts = 1.32 KW
Hours consumed = 6
Consumption per Day = 1.32 KW * 6 hours
= 7.92 KWH (kilo watt per hour)
= 8 KWH
Consumption per Month= 8 KWH * 31 Days per Month
=248 Units per Months
4.2.3 Calculating cost per month:
As prescribed by PEPCO the tariff varies from units consumed a list of the applied tariff with
effective of October 2010 is mentioned below or the domestic and commercial price.
4.2.4 Domestic tariff plan
Table 4.17
Units Variables Charges Rs/KW
1-100 4.28
100- 300 6.47
300- 700 10.44
700 and above 13.03
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Domestic Tariff Plan
The above table consists of the domestic tariff plan of the electricity bills which we pay.
4.2.5 Commercial tariff plan
Table 4.18
Commercial Tariff Plan
Units Fixed Charges Variable Charges Rs/KW
Sanctioned load up to 5 KW 12.78
Exceeding 5kw 346 7.98
The above table consists of the commercial tariff plans of the electricity bills.
4.2.6 GST applied:
GST is general sales tax which according to the government is 16% of the taxable amount as
mentioned on our utility bills and on websites of PEPC0, LESCO AND KESC. 16% which is
applied on the cost per month we calculated and then added to calculate the total cost.
4.2.7 Total Cost per Month:
Total cost is the sum of the GST and the cost per month we calculated.
4.3 Domestic Unit Consumed
4.3.1 Calculation for 1 ton air conditioner
Table 4.19
Domestic 1 Ton Air Conditioner Costing
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Hours/Day Units/Month Cost/Month GST Total cost
/Month
5 210 1140 182 1322
7 294 1683 270 1952
9 378 2536 406 2942
12 504 3851 616 4467
14 588 4728 757 5485
16 672 5606 897 6503
18 756 6628 1061 7689
4.3.2 Calculation for 1.5 ton air conditioner
Table 4.20
Domestic 1.5 Ton Air Conditioner Costing
Hours/Day Units/Month Cost/Month GST Total cost
/Month
5 341 2150 344 2494
7 477 3570 571 4141
9 613 4990 799 5789
12 818 7435 1190 8625
14 954 9208 1473 10681
16 1091 10993 1759 12752
18 1227 12765 2041 14806
4.3.3 Calculation for 2 ton air conditioner
Table 4.21
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Domestic 2 Ton Air Conditioner Costing
4.3.4 Window air conditioner costingTable 4.22
Domestic Window Air Conditioner Costing
4.4 Commercial Unit Consumed
4.4.1 Calculation for 1 ton air conditioner
Table 4.23
Commercial 1 Ton Air Conditioner Costing
Hours/Day Units/Month Cost/Month GST Total
cost /Month
Hours/Day Units / Month Cost/Month GST Total Cost
/Month
5 210 2631 421 3052
7 294 3683 590 4273
9 378 4536 725 5261
12 504 6315 1010 7325
14 588 7367 1178 8545
16 672 8420 1347 9767
18 756 9450 1512 10962
Hours/Month Units/Month Cost/Month GST Total
Cost /Month
5 647 5355 857 6212
7 907 8595 1375 9970
9 1166 11969 1915 13884
12 1555 17038 2726 19764
14 1814 20413 3266 23679
16 2073 23788 3806 27594
18 2333 27175 4348 31523
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5 542 4248 680 4928
7 716 6106 977 7083
9 920 8765 1402 10167
12 1227 12765 2042 14807
14 1432 15475 2476 17951
16 1636 18108 2897 21005
18 1841 20743 3318 24061
4.4.2 Calculation for 1.5 ton air conditioner
Table 4.24
Commercial 1.5 Ton Air Conditioner Costing
4.4.3 Calculation for 2 ton air conditioner
Table 4.25
Commercial 2 Ton Air Conditioner Costing
Hours/Day Units/Month Cost/Month GST Total
Cost /Month
5 341 4262 682 4944
7 477 5962 954 6916
9 613 7662 1226 8888
12 818 10225 1636 1186114 954 11925 1908 13833
16 1091 13637 2182 15819
18 1227 15337 2453 17790
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4.4.4 Window air conditioner commercial costing
Table 4.26
Commercial Window Air Conditioner Costing
4.5 Solar Ai Conditioner Plan
Hours/Month Units/Month Cost/Month GST Total
Cost /Month
5 542 6775 1084 7859
7 716 8950 1432 10382
9 920 11500 1840 13340
12 1227 15337 2454 17791
14 1432 17900 2864 20764
16 1636 20450 3272 23722
18 1841 23012 3682 26694
Hours/Month Units/Month Cost/Month GST Total
Cost /Month
5 647 8088 1295 9383
7 907 11338 1814 13152
9 1166 14575 2332 16907
12 1555 19438 3110 22548
14 1814 22675 3628 26303
16 2073 25912 4146 30058
18 2333 29162 4666 33828
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We must know for all the ones who study this report that how does the solar energy system
works. A solar energy system consists of the following items.
4.5.1.1 Solar panels
A solar panel (photovoltaic module orphotovoltaic panel) is a packaged interconnectedassembly ofsolar cells, also known as photovoltaic cells. The solar panel can be used as a
component of a larger photovoltaic system to generate and supply electricity in commercial and
residential applications.
4.5.1.2 Inverter
An inverter is an electrical device that converts direct current (DC) to alternating current (AC);
the converted AC can be at any required voltage and frequency with the use of
appropriate transformers, switching, and control circuits.
4.5.1.3 Charge controller:
A charge controller, charge regulator orbattery regulator limits the rate at which electric
current is added to or drawn from electric batteries.
In addition to these a solar energy system consists of batteries which may be dry or acid also.
The below given diagram can explain the working of a solar energy system.
Fig4.16: How Solar Works
Following the above fig (4.16) we can easily get to know about the energy flow of the system.
The solar energy system flows as the same as if u has an unlimited UPS working. The solar panel
takes sunlight from the sun and produces an electric charge which is controlled by a charge
http://en.wikipedia.org/wiki/Solar_cellhttp://en.wikipedia.org/wiki/Direct_currenthttp://en.wikipedia.org/wiki/Alternating_currenthttp://en.wikipedia.org/wiki/Transformerhttp://en.wikipedia.org/wiki/Electric_currenthttp://en.wikipedia.org/wiki/Electric_currenthttp://en.wikipedia.org/wiki/Battery_(electricity)http://en.wikipedia.org/wiki/Solar_cellhttp://en.wikipedia.org/wiki/Direct_currenthttp://en.wikipedia.org/wiki/Alternating_currenthttp://en.wikipedia.org/wiki/Transformerhttp://en.wikipedia.org/wiki/Electric_currenthttp://en.wikipedia.org/wiki/Electric_currenthttp://en.wikipedia.org/wiki/Battery_(electricity)8/6/2019 Solar Thesis Final Final
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controller and the flow of energy to move towards the charge controller which does not allow
overflowing the charge going towards the batteries. As we must know that the batteries produce
DC (Direct current) current and most of our items in our house are operated on AC (Alternate
Current). For this purpose an inverter is used to invert the DC current to AC current and our
system is ready to be used.
4.5.2 Estimated price for a solar air conditioner
Through sources it was found that a solar air conditioner is primarily a solar energy system in
which you can even use your own air conditioner in the above diagram explained when then DC
is inverted to AC you can plug anything to it .with the advantage of plugging and playing it
unlimitedly having a disconnection from the electricity company.
The estimated price taken from several companies from Lahore, Karachi and Islamabad which
even included the importers. The below given table (4.27) contains the prices:
Table 4.27
Estimated Price of Solar Air Conditioner
Tons Unit Price Solar System Price/Approximately
1 25000/- 400,000/-
1.5 32000/- 600,000/-
2 44000/ 800,000/-
4.5.2.1 Solar panel warranty
The solar panel provided by the companies or retailers give it with a 25 years warranty which
was found all over the world and is the key advantage for a costumer with a complete
satisfaction that a solar panel which is the main backbone of the whole system has a warranty of
not even one, two, ten but twenty five (25) years.
4.5.2.2 Batteries warranty
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The batteries provided by the retailers offer a warranty of one year. Even if we buy a battery
from a retailer separately it comes with a minimum warranty of 8 months.
4.5.2.3 After sale services:
The services provided mainly free maintenance for one year by the companies/retailers which
was confirmed also calling at their costumer services.
4.5.2.4 No technology barrier
Another point to be noted is that if we consider the basic UPS attached at our homes contain the
basic charge controller which controls the charge on the batter not to overcharge them and an
inverter which can be fixed by any electrician.
CHAPTER5
SUMMARY, FINDINGS, LIMITATIONS AND CONCLUSION
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5.1 Summary
The brief summary is that the study was conducted to give a suggestion in the current conditions
or any objective. On deep focus on the current conditions in the market I decided to give the
decision of solar air conditioners in the market of Pakistan. The research turned out to be very
interesting and throughout the findings the conditions of Pakistan were torn out and found to be
very problematic even in the coming years. The Pakistani people related to Punjab Baluchistan
and Sindh are continuous users of air conditioners.
Therefore I feel that solar air conditioners can take a major role in the market and fulfill the
usage of costumers and gain its acceptance.
5.2 Findings
5.2.1 Gaps in current market
After analyzing the data of customers sample, problems identified in the beginning were found
present in the current Pakistani situation of electricity and the rising prices per unit including the
shortage of electricity. The solar energy system in the current market can gain a huge acceptance
and have a great gap to fill in the market.
5.2.1.2 Quality & price
Other useful information was the quality preference of the customers which is a valuable point
for us because quality is the main attribute of our product. Price turned out to be the first most
important factor for customers which was concluded in chapter 4 while calculating the monthly
consumption of electricity bills which we pay at such higher rated including the general sales tax.
Moreover the product comes with a 25 years warranty for the solar panel which proves to be
very good in quality and the maintenance discussed was not a big deal.
5.2.1.3 Target audience
After reviewing the results of this study it is very clear that the customers that would be most
suitable for us to target are those who have monthly income of 26,000 to 50,000. Because such
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costumers will contribute more in their saving and can prefer a onetime investment for their
luxury living.
5.3 Limitation
This study is limited to solar energy and cannot be generalized for all types of products.
5.4 Conclusion
The findings of this study led to the conclusion that the level of acceptance of a product has
significant relationship with the innovation of a product.
The problems found in Pakistan are the shortage and high unit prices of electricity bills which
have a lot of time to be cured.
This study also revealed that customers in Pakistan have high rate of change acceptance. They
are willing to try new and improved products. They have become more knowledgeable and
informative about what their needs are and what they want. It was also found that TV
advertisement is the most influential medium of advertisement which would be helpful for future
innovative product launches.
Therefore we can conclude that solar air conditioners can be accepted in Pakistani market if the
costumer careful understands its advantage and price value at the current situation. Moreover it isa luxury and such items do not need to be taken in a sense to give the invested amount back.
Though solar air conditioners or solar energy systems are a medium of one time investment with
slight maintenance and provide saving for your electricity bills including taxes.
REFERENCES
Air Conditioning, In Wikipedia, the free encyclopedia. Retrieved from
http://en.wikipedia.org/wiki/Air_conditioning
http://en.wikipedia.org/wiki/Air_conditioninghttp://en.wikipedia.org/wiki/Air_conditioning8/6/2019 Solar Thesis Final Final
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CIA World Fact book- February 19, 2010. Retrieved fromhttp://www.indexmundi.com/pakistan/electricity_production.html
CIA World Fact book- February 19, 2010. Retrieved from
http://www.indexmundi.com/pakistan/electricity_consumption.html
Electricity Sector in Pakistan. In Wikipedia free encyclopedia. Retrieved fromhttp://en.wikipedia.org/wiki/Electricity_sector_in_Pakistan
Pepco wants 48% Hike in Tariff Prices. September 01, 2010.Retrieved fromhttp://www.dailytimes.com.pk/default.asp?page=2010\09\01\story_1-9-2010_pg7_28
Supply and Demand proposition .Retrieved from http://www.ppib.gov.pk/SupplyDemand.html\
Solar Energy History. Retrieved fromhttp://www.need.org/needpdf/infobook_activities/SecInfo/SolarS.pdf
Secondary Energy Info book, National Energy Education Development Project , Retrieved fromhttp://www.need.org/needpdf/infobook_activities/SecInfo/SolarS.pdf
APPENDIX - 1
QUESTOIONNAIRE
Notice: Thank You for your participation in the survey. This survey is being
exclusively conducted for the educational purposes, and the information
provided by you would be kept confidential. It will neither be shared with nor
https://www.cia.gov/library/publications/the-world-factbook/fields/2038.htmlhttp://www.indexmundi.com/pakistan/electricity_production.htmlhttps://www.cia.gov/library/publications/the-world-factbook/fields/2042.htmlhttp://www.indexmundi.com/pakistan/electricity_consumption.htmlhttp://en.wikipedia.org/wiki/Electricity_sector_in_Pakistanhttp://www.ppib.gov.pk/SupplyDemand.html/http://www.need.org/needpdf/infobook_activities/SecInfo/SolarS.pdfhttps://www.cia.gov/library/publications/the-world-factbook/fields/2038.htmlhttp://www.indexmundi.com/pakistan/electricity_production.htmlhttps://www.cia.gov/library/publications/the-world-factbook/fields/2042.htmlhttp://www.indexmundi.com/pakistan/electricity_consumption.htmlhttp://en.wikipedia.org/wiki/Electricity_sector_in_Pakistanhttp://www.ppib.gov.pk/SupplyDemand.html/http://www.need.org/needpdf/infobook_activities/SecInfo/SolarS.pdf8/6/2019 Solar Thesis Final Final
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shown to any member outside our organization at any time. Your cooperation
would be highly appreciated.
Respondents Name: ____________________________________________________
Location: ______________________________________________________________
Surveyor: ______________________________________________________________
Educational Qualification
Matriculation Or less1 Intermediate2 Under
Graduate3 Graduate4 Post Graduate5
Age Group
Less than 18 years1 18-24 years2 25-31 Years3 31-45
Years4 46 Years and above5
Gender Male1 Female2
Marital Status Single1 Divorced2 Married3 Married with kids4
Income Per Month
Less than Rs. 200001
Rs.20,000 Rs.39,9992
Rs.40,000 Rs.59,9993 Rs.60,000 Rs.79,9994
Rs. 80,000 or more5
1-Do you have any Air Conditioner at your place?Yes No
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2-Which type of Air Conditioner do you have ? a.) window b.) split.
3- What is the capacity of your cooling unit?
a.)1Ton b.)1.5 Ton c.)2Ton d.)4Ton
4- How many months do you use your air conditioner in a year ?
a.)3-5 Months b.)5 7 Months c.)7-9Months
5-How many hours do you use your cooling unit daily?
a.)1-3 Hours b.)3-5Hours c.)5-7Hours d.)7-9Hours
e.)9-12 Hours f.)More than above.
6-Have you heard about Solar Energy?
7-Would you like to have a solar air conditioner at your place?
8-If the company providing solar air conditioner gives after sale services and warranty
what will be your purchase decision?
9-What is the most influential mode of advertisement?
Yes No
Yes No
Yes NoMay be Ill Buy
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a.)TV b.)Radio c.)Hoarding d.)Print
10-What factor is most important when you buy any product?
a.)Price b.)Quality c.) Uniqueness d).Guaranty
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