Zimbabwe is currently experiencing a power crisis and this is driving demand for alternative sources of energy. Solar-based products are emerging as some of the most sought-after alternatives to electricity. No doubt, if you operate a solar products supply business in Harare you will notice the growing competition. However, the demand for solar products is projected to grow as the government`s ailing focus appears mainly to be on improving grid electricity supply. Failure by the government to have a more holistic approach to the energy crises is resulting in most Zimbabweans failing to access power as at when they need it. To this effect, the solar products supply business presents a huge opportunity for profit only if it is well structured and managed. This article, therefore attempts to share some of the basic factors to be aware of to successfully operate the solar products supply business in Zimbabwe.
1. Understand The Solar Business Regulations In Zimbabwe
Any business dealing in the supply and servicing of solar equipment in Zimbabwe should first be regulated by the country`s Energy Regulatory Authority(ZERA). This is a government body charged to oversee the regulation of the Zimbabwean energy market. To this effect, ZERA stipulates that players in the solar market can apply for either of the available two(2) classes of licenses. You can register and be licensed as a Solar PV Technician or you can be licensed to operate as a Solar Installation Contractor or Manufacturer. Each of these license class are subdivided into more focused areas of operation all of which will depend on where you are positioning yourself within the value chain.
It could be possible that the licensing regulations required in Zimbabwe account for fewer players who do the actual solar installation. To this effect, you may realize that as you climb up the industry value chain, there is less competition than is the case at the entry-level. However, we believe you can position yourself in a manner that is most advantageous to you if you pay attention to some of the recommendations we have in this article.
2. Always Supply Appropriate and High-quality Solar Products
In the work of stiff competition at the entry-level, you can make your solar business stand out by supplying high-quality products. The main reason most people decide to purchase solar equipment is because of their relatively low cost of operation. This should never be undermined by poor quality products which would require attention now and then thus pushing up the cost of operation. Hence, you should consider supplying only those products that meet the identified and not assumed needs of the local communities and your subsequent clients.
A winning formula for this is to always purchase your products from reputable wholesalers. When you make your stock purchase, be sure of the product’s quality and possibly its flaws as well. Good quality products normally require minimum maintenance and will work efficiently for a reasonable time frame.
3. Always Have An Active, Effective & Efficient Distribution Network
As has been mentioned earlier on, demand for solar is still not serviced in most towns and cities surrounding Harare. This requires that you come up with an efficient way of tapping into these areas and supplying efficient solar products. There are emerging boarding schools, hospitals, hospitality centers, and residential areas that need efficient solar systems to avert energy crises. Why don`t you come up with an effective way to deliver your solar products to these new and emerging markets? Offer them affordable solar equipment. Make it your mission to supply sustainable energy systems at a larger scale ensuring that you provide high-quality products to your customers then success in this line of business is inevitable.
4. Make Attempts to Stimulate Effective Demand
There is a sense in which communities lagging in the uptake of solar energy need to be informed of the benefits they stand to get from this energy innovation. It may well be crucial that you embark on a massive awareness drive towards the need to adopt and use clean sources of energy. This should form part and parcel of your marketing campaign which should aim to stimulate demand for the durable products you are bringing into the market. Campaigns are generally effective and yield the potential to promote general consumer education which is key in building consumer trust. Once your target consumers begin to trust you, a demand for your products will be subsequently created. So, why don`t you engage community-based sales agents to undertake door-to-door marketing of your products in new and existing markets?
5. Optimise Your Business To Offer Affordable Price
For most households, the cost of setting up a solar system is way beyond their reach. To this effect, some have resorted to using the method of elimination where they just get solar equipment targeting a specific function. Some will decide to use solar for lighting and in some cases for household entertainment. This means there is still room for consumers to expand their use of solar energy only if it is made affordable. In this regard, it will serve you well to understand that target end-users have to afford the products so they may easily adopt them. Create an opportunity for a full-scale solar system adoption to individuals who have regular seasonal sources of income and limited access to other financing options.
The above are some of the factors you may consider if you want to operate a successful solar equipment supply and installation business in Zimbabwe. You should never be scared of competition, it is just proof that you stand to make profits if you are outstanding.
