Fee-for-Service Companies for Rural Electrification with Photovoltaic

In developing countries, photovoltaic systems remain often unaffordable for inhabitants of rural areas. Therefore, special financing mechanisms need to be implemented to support their dissemination. For instance, fee-for-service schemes enable users to spread the up-front costs of photovoltaic systems over a long period, and provide a solution to the problem of their long-term maintenance. The paper surveys Energy Service Companies (ESCOs) that have been established in the Eastern Province of Zambia. Three small enterprises have been selected in 1999 and manage each 100-150 solar home systems. Regular contacts with technicians facilitate their follow-up and provide feedback from customers. Systems are now running efficiently and customers seem satisfied with the quality of the service provided. However, solar systems tend to be overused and batteries to be constantly discharged as the electricity loads increases. Furthermore, these small enterprises still faces financial uncertainties due to a high inflation rate in Zambia and the difficulty to increase regularly monthly fees. Even wit