Project Everest

Assessments, Environmental Sustainability

Solar Consulting (Moyo Energy) - Malawi

104 Ideas
371 Votes
238 Comments
335 Subscribers

Electrifying Malawi through affordable solar home systems
Vision: Transform access to energy in Africa

PROBLEM
Without lighting or power, you are unable to do simple things such as read at night or charge a phone. However, this is the reality for ~90% of Malawians who do not have access to electricity - this is one of the lowest rates of electrification in the world.
Even for those who are connected to the grid, power outages are a regular occurrence, making it an unreliable source of power. Philip, a local, sums up the situation: “Electricity in Malawi isn’t reliable. I would struggle to even cook sometimes because I have no light to prepare my meals. I would end up losing motivation and skip dinner that night”.
PE Ventures has assessed the supply, quality and cost of energy sources in Malawi, and is providing clean, safe affordable energy alternative in the form of solar power.

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Project Summary

The July Solar Team’s main focus of the month was to move away from our traditional sales and distribution channels which were both resource intensive and non-scalable, and develop more automated distribution channels that could operate all year around. Three new distribution channels were set-up and tested over the month, which utilised local community members and leaders to act as sales agents who earned income through a commission scheme. The three agent types were Chief Agents, Teacher...

Oscar Ogai
by Oscar Ogai
3 Votes
Comments 1
Oscar Ogai
Proposed Experiment

Lean phase:     Channels   Background information:    Teachers are a respected and influential figure in Malawian communities, as well as being well educated, so our assumption is that they will be able to track repayments effectively as well as use their status to ensure their payment plan customers follow through with repayments.   A number of payment plan sales (8) were made through Teacher Agents in July 2019, therefore these customers should be completing their final...

Cameron Fields
by Cameron Fields
2 Votes
Comments 1
Cameron Fields
Proposed Experiment

Lean phase:  Channels   Background information:  Part of the reasoning behind utilising chiefs as sales agents is to lower the risk of defaulting customers on payment plans as the chief would be the guarantor and has more means to follow up on repayments. Additionally, customers would be members of the village of the chief and will be more motivated in making repayments due to having a personal connection and the social pressure of the community.   A number of payment plan...

Cameron Fields
by Cameron Fields
2 Votes
Comments 1
Cameron Fields
Proposed Experiment

Lean phase:    Channels   Background information:    Agents have received training in payment processing systems when they signed up. As part of this training they were shown how to use the Agent Input Form which is what Solar Consulting will be using to complete initial sales administration and keeping track of finance repayments.   This experiment is a subset of the Airtel Agent , Teacher , Chief and Barbershop experiments.   Assumption:    Agents are...

Cameron Fields
by Cameron Fields
2 Votes
Comments 1
Cameron Fields
Proposed Experiment

Lean phase:  Channels Background information:  Barber shops are a common place that locals come to charge their phones, especially for those who do not have access to ESCOM. People who charge their phones at barber shops could benefit financially in the long term by purchasing a GD-Lite. Therefore barber shop owners have constant access to PEV’s customer segment. The barber shop owners could be interested in earning a commission that is many times higher than the profit of charging...

jefferson caldwell
by jefferson caldwell
2 Votes
Comments 1
jefferson caldwell
Experiment Results

Experiment Update:   Lean Phase: Channels The purpose of this experiment was to test the viability of using Chiefs as agents to sell solar products in the Blantyre area. This experiment has been conducted for 3 weeks in the village of chemussa and as discussed below achieved green light.    Original Assumption Village Chiefs are more effective at tracking and chasing their community member’s payments. They are also able to effectively sell the products to their community members...

jefferson caldwell
by jefferson caldwell
3 Votes
Comments 1
jefferson caldwell
Metric Measurement Experiment

Metrics:  Hours of quality light provided Quality light refers to the light provided by the GD-Lite compared to the light emitted by a single candle. A candle produces 12.5 Lumens of light whereas a single GD-Lite bulb produces 120 Lumens.    Weekly financial savings Weekly financial savings is deduced from the average amount spent on candes each week from Nanchli survey results and includes the cost of the GD-Lite.      Kilograms of CO2 saved CO2 saved is derived from the...

Cameron Fields
by Cameron Fields
3 Votes
Comments 1
Cameron Fields
Channels

The solar consulting team has multiple channels of getting the product to our customer segment. Some are temporary and non-scalable and others still need to be validated by experiment.    Chief-Agents → Reduces team admin and increases the scaling of the business.  This is a new distribution channel currently in experimental stage showing huge potential. The 2019 June and July teams found that by using the chief as an agent we solve many problems that past teams have faced....

Vicky Chang
by Vicky Chang
3 Votes
Comments 5
Vicky Chang
Cost Structure

The cost structure segment of the lean canvas identifies the costs associated with the business. These costs are categorised into fixed and variable costs. Currently at this start-up phase of the Moyo Energy business, calculating exact costs are difficult since there are many unexpected factors in play. That is why it is important to constantly update this document and to record the variable costs in order to find trends that in the future can be used to estimate these approximate costs....

Vicky Chang
by Vicky Chang
3 Votes
Comments 5
Vicky Chang
Revenue Stream

Currently, Project Everest Ventures (PEV) Solar Consulting Team is offering 1 product via 3 payment methods: Upfront payment: 35,000 MWK Monthly payment plan: 7,200 MWK instalments over 5 months (six payments total, including deposit). The total cost of 43,200 MWK Layby: Deposit of 10,000 MWK (this amount can be flexible) to reserve the product. Only once the remaining 25,000 MWK is re-payed does the customer receive the product. Currently, the Upfront payments and...

Vicky Chang
by Vicky Chang
3 Votes
Comments 5
Vicky Chang