Quetsol CEO Sitting in the Dark to Bring Electric Light to the Masses

By Danny Kennedy

 

 

Jaun Rodriguez is sitting in a dark room to raise awareness of the potential of solar electricity to bring light to the masses in Guatemala. Here’s the backstory:

 

The most exciting edge of darkness we are rolling back with clean energy is often in the developing or majority world, where people still don’t get to take electricity service for granted. Indeed, many folk are yet to experience an electric light let alone all the other benefits like entertainment, education, the internet, blended margaritas and electric cooking, which we all enjoy. Total there are 1.6 billion throughout the world who still rely on candles and kerosene to light their homes.

 

From a business point-of-view this “bottom of the pyramid” opportunity is the big one. But breaking through and making the adoption of clean energy like solar is as big a challenge in the Global South as mainstreaming solar power in middle America. One of the keys to unlock the potential is financing the systems for customers.

Just as the upfront cost of solar was a barrier to entry for many middle-class Americans until the solar lease become popular and available from companies like Sungevity (full disclosure: I work there) so too, buying a solar light for a family in Central America may be prohibitive to them benefitting from this technology. Being able to pay for solar electricity as a service, over time, rather than upfront as when you buy the hardware, makes solar a realistic energy source for 2.6 million people in Guatemala.

 

Which is where Quetsol comes in – the innovative social enterprise has already installed thousands of solar lighting systems but is now seeking to introduce a ground breaking “pay-as-you-go” solar proposition to its customer base in Central America. The new model bridges the gap between the high price of solar technology and the severe energy needs of Guatemala’s poorest rural communities without access to electricity. By eliminating the high upfront cost that prevents millions of people from purchasing solar, PAYG opens up clean energy to thousands more. And by providing an easy financing option—pay-when-you-can vs. pay-on-this-date—it will get this solar into more homes, faster.

 

Quetsol claims that their current solar kits save clients 20% of their previous candle and kerosene costs, and the new model elevates this to 44% savings. And perhaps the most promising aspect is that a Pay-for-Service model like this one has the potential to be replicated as easily and successfully as telecommunication companies have done throughout the world. Indeed, Quetsol expects to see sales increase by 1700%, distributing 100,000 kits and reaching over 505,000 people in the next five years.

 

So it is all good news but they need some capital to make it happen, which is why they are running an Indiegogo campaign. I don’t think I am meant to push my readers there – but I must say I like the way the CEO of Quetsol is raising awareness of their fundraising drive: by sitting in the dark till he gets the funds necessary to roll out this groundbreaking business. Juan Rodriguez will sit in a pitch-black room and refuse to turn on his lights until their goal is reached.

 

We need audacious solar entrepreneurs if we are going to succeed bringing solar to all – I wrote a book about this last year. So, if you are so moved please do visit Quetsol’s website and their Indiegogo page to help them turn on the lights for Juan and, more importantly, for thousands of Guatemalans. Shine on indeed!

 

Originally posted on Forbes.com

Why Hollywood Will Go Solar

 

 

By Danny Kennedy (Originally posted on Forbes)

 

Los Angeles is known for its great year round weather – sunny and 73! Taking advantage of its ideal solar climate, LA will soon be known for being a real leader of the booming solar economy.

 

On Feb. 1,  the Los Angeles Department of Water and Power – made famous in the movie Chinatown but probably a bit more mundane of a bureaucracy these days – took its first big move into building out a 150-megawatt rooftop solar program.

 

The iconic Hollywood sign on a hillside above a neighborhood in Los Angeles on October 2, 2012 in California.  (Image credit: AFP/Getty Images via @daylife)

 

These installations will be supported by a Feed-In Tariff – a policy that pays a premium rate for the electricity generated to create an incentive for people to build solar systems. FITs have been the driver of solar uptake from Europe toAustralia and will work in L.A. In this case, it is targeted to multi-tenant dwellings, commercial buildings, and those large inner city rooftops that have not yet been going solar.

 

One of the facts that moved the City Council to support their municipal utility to CLEAN LA with distributed solar was the way this will serve those so far underserved by the solar industry. Aerial mapping and analysis shows that some of the best roofs to invest in to harness this feed-in tariff are on rooftops of inner city Angelenos. Bringing solar to these areas will not only help clean the air, but will also put local solar installers to work. To date, most of those trained in solar have been commuting out of L.A. to the suburbs and single-owner occupied buildings have been addressed a lot faster by the industry than blocks of apartments and rental homes.

 

Mary Leslie, the head of L.A.’s Business Council, is ecstatic about the new program. Having coffee with her on Monday she shared that the announcement by LADWP represents a big win for an unusual alliance of interests, and will create huge benefits for the city – lots of investment, lots of jobs and big carbon reductions.

 

LABC is a powerhouse in the commercial world of this city of angels and according to Mary they worked shoulder to shoulder with environmental justice activists, the Sierra Club, clean energy policy people, academics at UCLA and many others to get this done. “It is awesome to see – because we were a strong coalition we could create half a billion in value for L.A., with a little budget” she explained of the work that went into it.

 

The money flow into the city is what she’s most excited by – as much as $500m with $300m in tax credits being leveraged. Already one big company, Solar Provider Group—an international solar firm—has announced plans to open its US headquarters in L.A., hire 30 new employees and invest $50 million in L.A. by 2016. This is just the beginning of new investment and jobs in L.A. . Research shows that implementing all 150MW of power capacity with the FIT will create 4,500 local jobs.

 

And then there’s the 2 million metric tons of carbon pollution this will stop. Not bad L.A. Shine on!