This blogpost is a result of a discussion yesterday with Ms. Iris Becker of Let’s Bridge IT, who is very interested in making German solar energy technologies as well as advanced energy saving techniques available and popular in India.
Well, solar energy appears highly promising and it appears likely that the world will tap into it in a big way in the coming decade. Yet the term “solar energy” is just an umbrella term for dozens of fairly distinct technologies. When a lot of competent players are competing to improve these technologies, how can a small entrepreneur get in the game?
It seems to me that the answer is to innovate instead in the local education, marketing, sales and deployment of whichever technologies come out on top. In other words, to provide the local channel. I suggested to Iris that if she and her corporate partners would create strong training programs and logistics infrastructure to supply and support a large variety of products and services, local entrepreneurs might be attracted to work with this group. The products could vary from the fancy to the very basic – from hi-tech solar panels to the most basic heat reflecting paints and films.
Do you think this approach makes sense? What other approach might you take?
5 comments:
Dear Sir,
Whenever the adequate consumer demand of a product is available, its supply will automatically come by the market forces. Today, really solar energy sector looks very promising but there are some basic problems which I identified for any new promising sectors. In my opinion these are-
1. Lack of awareness in the market participants. A proper marketing to them will help to create demand for solar energy equipment.
2. Second big problem is about technology. But for the solution of this problem nothing can be done because it brings the solution with it. I mean to say with the increasing usage of the technology, its cost reduces. For example the rate of compact fluorescent lamp (CFL) has reduced drastically with the increasing usage of it.
3. The last problem is of organization. An organization should take lead to educate all its market participants about benefits.
I believe these observations can provide a better outlook for assessing a promising future such as solar energy.
In an entrepreneurship class yesterday we discussed how the challenges you mention might be overcome. It was a good discussion, where we realized we will have to bundle education with distribution.
Ravi, btw I only just noticed that you have addressed the issue in a few clear points, like we always suggest. Wonderful.
Thank you very much sir, for boosting my confidence.
I am thankful to our top team and faculties, who developed a better way of presenting my thoughts in me.
First of all, I would like to say THANKS to Proton, for further more addition towards creating values by providing this sharing platform, its great!
Good Morning!
Challenges are there in solar businesses, as we had a great discussion in E'ship class, and also I had words with an Entrepreneur, who is in solar business since 1994 in Indore, what valuable inputs he has shared, some of them are as follow -
1. Educating customers and creating awareness for long term benefits is a challenging task, because customers almost try to get benefits of our investments as soon as possible i.e. short term benefits.
2. Customers are worried about the services (post purchase) facilities. for this aspect we have to ensure a depth distribution reach of products and services, and also we have to ensure services as our primary function.
3. In market our competitors are not only from same business of solar products, they are sellers of other power back up system like Diesel and keroscene genset, inverters etc., these alternative products are cheaper compare to solar products, and also the cost per kilowatt consumption is less.
There may be more challenges but as per my understanding, these are the basic challenges that we have to face in solar based businesses.
Thanks!
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