ABSTRACT

This chapter examines how a commercially viable solar energy product distribution network was developed in Tanzania between 2004 and 2006, and how this network managed to sell over 5,500 small solar domestic systems within three years. Connection to the electricity grid is often not an option for the majority of people in developing countries as installation or expansion of the network is too costly, the population is too scattered and their individual consumption is too small. The key to small solar system product design is to know the typical end-user—who they are, what they need the energy for and their purchasing power. Stock procurement means depleting cash flow for small businesses, entrepreneurs prefer to test the market first before procuring stock. Dealer network development and dealer evolution by Umeme Jua is just the start of a process to leverage the huge potential of the Tanzanian solar energy market at the base of the pyramid.