NAIROBI, Kenya, Jul 30- The uptake of solar power in Kenya has been on the rise in recent years.
This is due to several factors such as cheaper technology for solar panels, abundant supply of panels, over-reliance and costliness of fossil fuels and the unstable nature of both hydro and wind power generation therefore solar power is now Kenya’s next frontier for renewable energy.
According to Rodii & Partner Solar utilization in Kenya is mainly for photovoltaic systems which are used for telecommunications, lighting and cathodic protection of pipelines. Solar power is also used in drying and water heating.
“Furthermore we have seen more and more factories install solar panels on their rooftops to counter the cost of buying power from the grid and also mitigating against the instability of the grid since power outages are a regular feature of the Kenyan industrial and residential landscape,” the firm says.
With the increase of solar use, how can Small and Medium Enterprises (SMEs) tap on this resource?
We sat down with Paul Simiyu Mabonga Managing Director, Sentimental Energy Limited to tell us why SMEs need to invest in solar energy going forward.
Why is solar the way to go for institutions?
Solar energy helps institutions save on energy costs and helps lower power bills. It is also a stable backup for institutions in remote areas. According to research, one in four health facilities in Kenya experience frequent power shortages. Solar is stable and reliable even in remote areas. With solar, the health system can increase resilience to energy challenges. Installing solar in institutions such as schools is a great way to create awareness on solar energy.
How cost effective is solar?
Installing solar is cheaper in the long run. Installing solar may seem expensive during the first installation process but it is cheaper in the long run due to the long life cycle of solar components such as solar modules and batteries.
One of the main barriers of solar penetration is its initial high costs; however, solar installation companies have come with different financial strategies that can help individuals install solar power without much financial strain.
What are the barriers to the adoption of solar?
The first one is lack of a suitable environment that supports the growth of the solar industry. Environmental barriers include the institutional and policy barriers, which are unreliable for example, asudden removal of the subsidies or inconsistencies policy measures can be a significant barrier.
High initial costs for solar installations are also another reason. Solar projects have high initial installation costs and limited financing options in almost levels involved, from the manufacturer, distributor, dealers and consumers, which prevents more people from installing solar and solar companies from pursuing solar projects.
Lack of awareness: consumers countrywide are not educated on the benefits using solar and an alternative and cost effective form of energy. There is a need to educate consumers on various energy generation options and there benefits, and also the dangers involved in using dangerous and dirty fuels to light homes. Consumers also need to be informed of the sub-standards products in the market so that they can be able to get quality products.
Are regulations prohibitive or conducive?
Regulations allow licensed companies and individuals to install, maintain, and troubleshoot solar installations. However the government of Kenya has taken a hands-off approach in matters concerning solar, as even though people are allowed to install solar, further support in terms of funds, technology, and research is limited.
Regulations are quite inconsistent, on paper there exist regulations seeking to increase the integration of solar installation but it has been difficult to put these regulations into practice.
One such policy is the feed-in tariff which allows consumers to feed their excess solar power production into the grid. Despite this tariff been developed in 2008, it has not been implemented to support all solar productions.
Political climate also can become a threat to solar energy adoption, as some project can be over-prioritized while others are under-prioritized. Political choices and prioritization may affect small scale solar projects.
How is Sentec Helping?
Sentec seeks to provide solar solutions to institutions that will give them a stable, reliable and cost effective power supply.
Sentec also seeks to create solar awareness through consumer education on the benefits of using solar as an alternative source of energy. We have created a Q&A platform where consumers can ask critical questions and get reliable answers concerning solar energy.
Sentec is also providing financial options to mitigate the high initial cost barrier that faces many who wish to install solar systems in the homes and businesses.
How does solar increase the bottom-line?
Installing solar helps an institution cut on the costs they spend on the grid. In recent years the cost of the grid continues to be more volatile and is always rising. Therefore, solar protects institutions from this unpredictable market fluctuation, hence offering more stable energy options needed for sustainable growth.