Photovoltaics for

Community Service Facilities

Guidance for Sustainability

Africa Renewable Energy

Access Program (AFREA)
Copyright © 2010
The International Bank for Reconstruction
and Development/THE WORLD BANK GROUP
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
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All rights reserved

Manufactured in the United States of America
First printing December 2010

This is a publication by the Africa Renewable Energy Access Program (AFREA), a Trust Fund Grant
Program funded by the Kingdom of the Netherlands through the CEIF (Clean Energy Investment
Framework) Multi Donor Trust Fund (MDTF) recipient executed and technical assistance window
established by the Energy Management Assistance Program (ESMAP). The materials in this publica-
tion are copyrighted, and requests for permission to reproduce portions of it should be sent to the
AFREA Program Manager at the address shown above.

Some sources cited in this paper may be informal documents that are not readily available. The
findings, interpretations, and conclusions expressed in this report are entirely those of the author(s)
and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to
members of its board of executive directors for the countries they represent, to donors, or AFREA.
The World Bank and AFREA do not guarantee the accuracy of the data included in this publication
and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors,
denominations, other information shown on any map in this volume do not imply on the part of the
World Bank Group any judgment on the legal status of any territory or the endorsement of accep-
tance of such boundaries.

Photo Credits
Pages 2 and 5: Photo: ©IT Power Ltd., 2001
Page 3: Photo: ©Anil Cabraal, 2009
Page 10: Photo: ©Jim Finucane, 2009

Designer
Studio Grafik

Production
Marjorie K. Araya
Photovoltaics for
Community Service Facilities
Guidance for Sustainability

Africa Renewable Energy

Access Program (AFREA)
Contents
Foreword by the AFREA Program Manager .......................................................................................v
Executive Summary ......................................................................................................................... vii

Part 1.Introduction ........................................................................................................................ 1

Advantages of PV for off-grid facilities ...................................................................................... 2
PV system components and configurations ............................................................................. 3
Reversing patterns of low sustainability .................................................................................... 4
Preparing a sustainable project ................................................................................................ 5
Toolkit basis, audience, focus and organization ........................................................................ 8

Part 2.Rapid Assessment ............................................................................................................. 9

Assess why PV systems are being considered ......................................................................... 9
Determine which, where, and how many facilities and which services .................................... 10
Determine energy requirements and PV system sizes ............................................................ 10
Estimate PV system costs and least-cost option .................................................................... 11
Whether to install a PV water pump ....................................................................................... 14
Decide on implementation model and institutional and technical details ................................. 17
Result: Project Concept and Preparation Plan........................................................................ 20

Part 3. Preparation of the PV Implementation Plan ................................................................. 21

Gather information and conduct field surveys......................................................................... 22
Update rapid assessment data on facilities and prioritize services .......................................... 23
Refine energy requirements and size and configure PV systems ............................................ 23
Energy demand refinements .................................................................................................. 24
Construct cost estimates and fine-tune least-cost option ....................................................... 26
Decide on implementation model and institutional and technical details ................................. 26
Result: PV Implementation Plan ............................................................................................. 28

Part 4. Procurements and Contract Management ................................................................... 31

Viable strategy for off-grid PV procurement ............................................................................ 31
Elements of viable PV contracts ............................................................................................. 35
Contract management: Rollout and long-term supervision ..................................................... 43

Part 5. Long-term Operation ...................................................................................................... 47

Contracted or in-house maintenance? ................................................................................... 47
Ownership ............................................................................................................................. 48
Post-project operational financing .......................................................................................... 48
Beneficiary contributions ........................................................................................................ 48
Securing maintenance funding commitments......................................................................... 49
Maintenance plans................................................................................................................. 50
Maintenance tiers and tracking .............................................................................................. 50
Maintenance performance contracts ...................................................................................... 51
Other sustainability issues: Load creep, theft, and vandalism ................................................. 52

Part 6. Conclusion ....................................................................................................................... 53

Annexes
Annex 1: Assessing PV as a Cost-effective Energy Option
Annex 2: Lighting Levels
Annex 3: Assessment of Institutional and Market Capacities
Annex 4: Terms of Reference (various)
Annex 5: Publicity Teasers
Annex 6: Example and Model Contract Documents

The complete list of Annexes is accessible online at: http://www.worldbank.org/afr/energy/afrea

Boxes

Box 1: Sustainability of PV Vaccine Refrigerators .............................................................................. 5

Box 2: Lessons from the Zambia Social Investment Fund ................................................................. 6
Box 3: Summary of Key Steps in the Rapid Assessment .................................................................. 9
Box 4: Sustainable Solar Market Packages: Initial Lessons from the Philippines.............................. 18
Box 5: Summary of Key Steps in Preparing the PV Implementation Plan......................................... 21
Box 6: Clean Development Mechanism .......................................................................................... 27
Box 7: Indicative Template for PV Implementation Plan ................................................................... 29
Box 8: Items Included in Contract Negotiations .............................................................................. 35
Box 9: Example of Inspections and Handover Procedure................................................................ 41
Box 10: Sudan’s Community Development Fund: Lessons in Beneficiary Funding .......................... 49

Figures

Figure 1: Declining costs of PV modules ........................................................................................... 2

Figure 2: PV industry growth showing MWp sales, 1981–2009 ......................................................... 2
Figure 3: Typical configurations of off-grid PV systems ...................................................................... 4
Figure 4: Decision tree for least-cost technology choice.................................................................. 12
Figure 5: Comparison of life-cycle costs for PV and other options ................................................... 13
Figure 6: Comparison of life-cycle operating costs for PV and other options ................................... 13
Figure 7: Annual costs (US$), 800 Wp over 20 years ...................................................................... 14
Figure 8: Life-cycle costs of water supply ....................................................................................... 15
Figure 9: Running costs of water supply ......................................................................................... 16
Figure 10: Costs of PV and Non-PV pumps .................................................................................... 16
Figure 11: Competitive range for solar pumps versus hand pumps and diesel generators............... 17
Figure 12: Communication channels ............................................................................................... 43

Tables

Table 1: Electricity Access of Uganda Health Facilities ...................................................................... 1

Table 2: Electricity Access of Uganda Education Facilities ................................................................. 1
Table 3: Basic guidance to mitigate risks of PV projects in community facilities ................................. 7
Table 4: Estimated daily energy requirements and PV system size .................................................. 11
Table 5: PV system component costs ............................................................................................. 11
Table 6: Typical PV system costs for small schools and health clinics .............................................. 11
Table 7: Implementation model options for Selected PV projects .................................................... 19
Table 8: Example of priority ranking of health and energy services, by facility location ..................... 23
Table 9: System design issues and guidance .................................................................................. 25
Table 10: Illustrative example of cost estimates, 250 Wp system .................................................... 27
Table 11: How to avoid common PV procurement problems........................................................... 31
Table 12: Choice of standard bidding documents ........................................................................... 32
Table 13: Timeline for system and installation procurement anticipating seasonal changes ............. 33
Table 14: Checklist for bid evaluation .............................................................................................. 34
Table 15: Technical requirements of PV contract components......................................................... 36
Table 16: Guidance on international standards for off-grid PV system components......................... 37
Table 17: Maintenance overview ..................................................................................................... 51
Table 18: Key elements of maintenance performance contract ....................................................... 52

Note: All dollar amounts used in this report are current U.S. dollars unless otherwise specified. As a result of rounding, numbers in tables
may not add to totals and percentages in figures may not add to 100.
Foreword

Meeting the Millennium Development Goals by 2015 cannot be achieved without providing essential health,
education, and clean water services to the over 1.6 billion people living in unelectrified areas. With grid electricity
services or diesel electricity generation prohibitively expensive in remote areas, the attributes of solar photovoltaics
(PV) seemed ideally suited to providing energy services in areas where electricity supply by conventional means
is difficult and expensive. While solar PVs have been deployed across the remote and rural areas in developing
countries to meet essential service needs of communities, its long-term sustainability has been below par, in
part due to lack of attention to proper design and provision of long-term maintenance services. Drawing on
experiences and good practices from throughout the world, the Photovoltaics for Community Service Facilities:
Guidance for Sustainability fills the knowledge gap and offers a guide to practitioners beginning with the process
of selecting a solar photovoltaic system to planning for its long-term operation and maintenance.

This report is part of AFREA1 and ESMAP’s commitment to enhancing sustainability of solar PV systems to
meet community electricity needs.

Our hope is that it will improve the function, and therefore, the benefits derived from electricity in rural
community facilities. We understand that it is impossible to determine the best practice in all cases and hope
the Toolkit will be used as a reference to help users understand the key decision points that can affect the
outcome of a project.

Tjaarda P. Storm van Leeuwen

Program Manager
Africa Renewable Energy Access
Program (AFREA)

1 The AFREA Program Manager is also the Adviser to the World Bank Group Africa Energy Unit (AFTEG).
Acknowledgements

The Toolkit was prepared principally by Jim Finucane and The AFREA Program is supporting activities under Pillar 1 of
Christopher Purcell, with guidance and assistance from a World the CEIF which is meeting the energy needs of developing
Bank project team consisting of Anil Cabraal (World Bank countries and widening access to energy services for their
Senior Consultant), Kate Steel and Maria Hilda Rivera (The citizens in an environmentally responsible way. All activities
World Bank Africa Energy Unit, AFTEG) and Bipulendu “Bipul” supported by AFREA are designed to complement and
Singh (The World Bank, Energy Sector Management Assistance support AFTEG’s mission, aiming specifically at activities
Program, ESMAP). The preparation of the Toolkit was managed that directly support and/or create enabling conditions for
by Anil Cabraal and Kate Steel. increased renewable energy investments and expanding
access to modern energy services in Sub-Saharan Africa
The authors gratefully acknowledge the financial and technical (SSA), as well as recipient-executed pre-investment
support from the World Bank Energy Anchor, a part of the activities that are intended to help accelerate deployment
Sustainable Energy Department, particularly for its early support of renewable energy systems based on hydro, wind,
to the development of the project concept. Special thanks to geothermal and solar energy resources.
Norma Adams (Consultant), and Marjorie K. Araya (AFTEG,
now ESMAP) for their contributions in the areas of editing The financial and technical support by the Energy Sector
and final production of this report. Also, the team benefited Management Assistance Program (ESMAP) is gratefully
from numerous consultations with practitioners in Africa and acknowledged. ESMAP is a global knowledge and technical
elsewhere, including a workshop held in Tanzania with local assistance trust fund program administered by the World
experts in May 2010. Participants from programs in Ethiopia, Bank and assists low- and middle-income countries to
Kenya, Mozambique, Rwanda, Sudan, Tanzania, the Philippines, increase know-how and institutional capacity to achieve
and Uganda provided expert advice based on their experiences. environmentally sustainable energy solutions for poverty
reduction and economic growth. ESMAP is governed and
Funding for the Toolkit was provided by the Africa Renewable funded by a Consultative Group (CG) comprised of official
Energy Access Grants Program. The AFREA Program is bilateral donors and multilateral institutions, representing
funded by the Kingdom of the Netherlands through the CEIF Australia, Austria, Denmark, Finland, Germany, Iceland, the
(Clean Energy Investment Framework) Multi Donor Trust Fund Netherlands, Norway, Sweden, the United Kingdom, and the
(MDTF) recipient executed and technical assistance window World Bank Group.
established by the Energy Management Assistance Program
(ESMAP). These funds are earmarked to support The World
Bank Africa Energy Unit (AFTEG) - execute analytical and
advisory activities and also to provide recipient-executed
technical assistance and pre-investment grants that would
help accelerate deployment of renewable energy systems.

vi | Photovoltaics for Community Service Facilities

Executive Summary

In many developing countries with large rural populations community facilities. In practice, this means that, during
and low rural electrification rates, most community health project formulation, greater attention must be paid to the
and education facilities lack access to electricity. For organizational frameworks and operational details for the
facilities in remote areas beyond reach of the national grid, post-project period, along with the usual attention given to
photovoltaics (PV) systems may offer the most practical project budgets, procurement, launchings, and disbursements.
and least-cost way to access electricity. A PV system Such issues have long been dealt with in the case of vaccine
uses predictable solar resources and has long been cost refrigerators. Though not without problems, their operation
competitive with diesel generators and other alternatives. In has enjoyed a better sustainability track record than that of
off-grid rural primary schools and health dispensaries, for other PV systems in off-grid facilities. Indeed, without robust
example, PV systems oftentimes are an appropriate way to institutional arrangements, the technical problems that
run many low-power, high-value appliances and equipment, inevitably arise with off-grid PV systems, as with any other
from lamps and vaccine refrigerators to water pumps, power source, cannot be adequately addressed.
television sets, and computers. Thus, if the electricity grid
is not expected to arrive in the near future or if diesel fuel Facility managers seeking PV solutions to fit their local
is unavailable or too expensive, a PV system may offer the contexts face similar questions: What technical and
least-cost technology for providing electricity service. institutional requirements are the most critical? What are
the key options to consider? What are the major pitfalls to
Social-sector projects with off-grid community facilities, avoid? The key aim should be sustainability —the reliable,
including health and education, often use solar PV systems cost-effective operation of a system over its design lifetime.
to generate the electricity needed for services and staff. But Any PV system presented at the design stage as the least-
sustaining PV system operations at facilities in poor, remote cost solution for powering a school or health clinic will only
communities can be problematic. If maintenance and repair succeed as least cost if it operates over the long term.
services are not provided, many systems become inoperative
after 3–5 years. Reliable, long-term operation requires that The observations and guidance presented in this toolkit are
PV systems be well-designed and installed, using equipment based on the operational experience of the authors and other
of sound quality. Equally, if not more crucial for systems in team members with PV projects in more than 20 countries over
community facilities (in contrast to systems owned by private the past 15 years in the Africa, Latin America and Asia regions.
households), are the institutional arrangements that ensure They also draw on the reviews of a May 2010 Dar es Salaam
the uninterrupted recurrent funding for maintenance, repairs, workshop of PV experts and project specialists, as well as
component replacements, and spare parts. When any of from the July 2010 peer-review carried out by a group of World
these elements is missing, done poorly, or done in ways Bank renewable energy specialists. The findings suggested by
inappropriate to the context, system failures can result. this significant experience base will be of operational interest to
all those with key roles in the development of sustainable PV
In past decades, technical reasons have often been cited investments in off-grid community facilities.
for PV system failures. In certain cases, donor funds have
been used to install multiple PV systems at the same facility. The target audiences are project developers, managers
Rather than repair components or replace batteries installed and practitioners working with organizations that fund or
under a previous project, it has sometimes appeared easier operate projects with PV systems at multiple-site facilities
to procure and install a new system under a new project. (e.g., sector organizations, such as health and education
But such an approach, which can only be sustained for ministries, rural electrification agencies, local governments,
as long as the chain of donor projects lasts, is ultimately non-governmental organizations and community-based
wasteful. In such cases, rehabilitating older systems should associations). It sets out an approach to project development
be considered, along with putting in place viable long-term and implementation and provides the basic guidance on
maintenance and funding arrangements. key risks and mitigating measures, which can serve as a
checklist for discussions with PV and other experts. For
As the PV technology has matured, the confounding issues the specialists, the toolkit provides many of the details and
have increasingly centered on the institutional factors references for current best practices.
that are pivotal to project success or failure of projects for

Photovoltaics for Community Service Facilities | vii

To date, the preparation of projects to electrify multiple five key steps. The first assesses why PV systems are being
off-grid community facilities with PV systems has generally considered. The second decides on which facilities to cover,
followed a linear process: (i) identification of a need (e.g., where they are located, and how many there are. The third
electrify 100 primary schools) based on abbreviated determines the energy requirements and PV system sizes, and
assessments; (ii) quick decision to use solar PV; (iii) setting then estimates PV system costs and the least-cost option.
a budget based on the most approximate assumptions; (iv)
system sizing and specification by a single “expert” working Finally, the initial implementation model for supply, installation,
without independent professional technical review; (v) and operation is decided on with key stakeholders. This
adoption of the contracting method that fits the practices phase could be done largely by the task team leader and
and interests of the lead organization or donor; and (vi) would result in a tentative project concept and preparation
protracted system procurement, delivery, and installation. plan for the stakeholders to consider. The required time for
this phase ranges from a week to a month.
By contrast, a more sustainable approach would, during
project preparation, comprehensively address both technical If this rapid assessment determines that PV is a viable option,
and institutional requirements, including post-project it results in a brief concept for a possible project and the
maintenance and recurrent funding. Early on and throughout plan for its preparation. The project concept is discussed
the planning process, internal loopbacks would be with stakeholders and independent specialists, including
incorporated to consider trade-offs and facilitate the inputs off-grid renewable energy specialists, and is adjusted as
of communities, PV experts, procurement specialists, and appropriate. The plan for project preparation takes into
other stakeholders. In addition, consultations would be held account an assessment of available information and activities
with independent specialists to take advantage of a wider to be undertaken during preparation to fill gaps and generate
body of experience and expertise. additional and improved data.

Also essential at every operational stage are supervisory The second phase of project development is the
and contract capacities in installation and maintenance that preparation of the PV implementation plan. This is
are robust, timely, intensive, independent, and professional. accomplished with the assistance of several specialists,
These include technical support for vetting equipment and including a PV technical specialist, and involves working
installations and regular, repeated, in-the-field monitoring and closely with lead organization managers and specialists,
reviews of performance, whether done under contracts or via broad-based stakeholder consultations, and multiple
various types of in-house maintenance arrangements. iterations. The time required for plan preparation, estimated
at 1–3 months, depends mainly on the quality of existing
Robust maintenance arrangements are the sine qua non data and how much new information must be generated
of sustainability. These include securing funding for battery from the field on facility site characteristics and energy
replacements and other recurrent costs, clearly identifying requirements. Although many of the same questions raised
ownership responsibilities, building necessary capacities, during the rapid assessment are revisited, this phase
and installing a reporting and tracking system to provide addresses them at a deeper, more detailed level.
data to monitor maintenance and performance and
anticipate problems. The third phase of project development, procurements and
contract management, involves securing firm financing
The authors of this guidance document have proposed that commitments (including those for post-project recurrent
these three elements—comprehensive preparation, sound costs), developing tender packages, tendering and
supervision, and robust maintenance arrangements—be contracting, and contract management. It also covers PV
incorporated into project development that is phased in four system installations; maintenance; and performance tracking,
equally important stages: (i) rapid assessment, (ii) development monitoring, and supervision. To avoid the common pitfalls
of the PV implementation plan, (iii) procurements and contract of many off-grid PV projects, a viable strategy for off-grid
management, and (iv) long-term operation. PV procurement must be developed. Guidance is given
on choice of procurement method and process, timely
The rapid assessment of the project scope determines promotion and publicity, appropriate phasing and scheduling
whether PV is the most cost-effective solution and the and bidder criteria, and contract negotiations.
implementation models available. This initial phase involves

viii | Photovoltaics for Community Service Facilities

Good practice guidance is provided on the key technical
requirements for viable PV contracts. These range from
reasonable lot sizes and cost estimates, PV system
packages, and locations of installation sites and facilities
to practical completion of installations, commissioning and
acceptance, and system handover from the contractor to the
implementing agency or beneficiary entity; they additionally
include payment structures, warranties, and guarantees;
reporting and communication channels; and maintenance
and performance tracking. Also covered are the conditions
for effective contract management and the appropriate
supervisory support required during transaction and rollout
periods and over the longer term.

The fourth phase, long-term operation, is where too many

projects fail. The key to success is maintenance continuity,
and the basic rule is “you get what you pay for.” While
it is imperative that good maintenance capacities and
practices be put in place together with viable institutional
arrangements for funding post-project maintenance
(including component replacements), the choice of approach
depends largely on assessments of the local context.

In summary, this toolkit is, at a minimum, a checklist of key

issues to address in developing an institutional PV project.
While it is not a technical manual, nor a substitute for using
professional PV specialists to size, configure, and specify
system and maintenance requirements, it offers practical
operational guidance to assess, develop, and implement
projects with PV systems in ways that enhance cost-
effective supply and sustainable post-project operations. The
guidance offered herein demonstrates that the opportunities
for effectively addressing the issues to establish the basis for
sustainability are many.

Photovoltaics for Community Service Facilities | ix

x | Photovoltaics for Community Service Facilities
 Part 1. Introduction

Access to electricity is vital to community service facilities in In many developing countries with large rural populations,
rural areas. In rural health clinics and schools, electric lighting rural electrification rates are low, and most community health
provides public security and allows facilities to remain open in and education facilities lack access to electricity. Uganda is a
the evenings. Housing facilities with an electricity connection typical example. In rural areas, where more than 80 percent
often attract the most qualified staff members. Beyond lighting, of the country’s more than 30 million people live, most health
electricity is used to power an array of appliances, such as and education facilities are small and lack electricity. Among
vaccine refrigerators, and other specialized equipment; pump lower-level health facilities, which represent 90 percent of all
water; and run a host of communication devices—from radios health facilities in the country, half lack access to the national
and television sets to computers and videocassette players— grid, mini-grids, or stand-alone diesel or PV systems (Table 1).
linking rural people to information, markets, and urban Among education facilities for young and school-age children,
centers. Community service facilities without a connection most of which are located in remote rural communities, about
to the national or local electricity grid must rely on alternative four-fifths lack electricity access (Table 2).
energy sources (e.g., independent diesel generators, solar
photovoltaic (PV) systems, liquefied petroleum gas (LPG) or
kerosene), or do without.

TABLE 1: ELECTRICITY ACCESS OF UGANDA HEALTH FACILITIES

Access status (%)
Facility type % of total Grid or permanent mini-grid Stand-alone diesel No access
or solar system
Urban hospital 2 100 A few district hospitals
(except for a few district hospitals)
Rural hospital (HC IV) 7 27–43 57–73
(NGO ones have higher access
rates)
Rural health center (HC III) 27 14 52 34
Rural dispensary (HC II) 65 6 29 65
Source: Uganda Indicative Rural Electrification Plan, 2008.

TABLE 2: ELECTRICITY ACCESS OF UGANDA EDUCATION FACILITIES

Facility location (%) Access status (%)
Facility type % of total Urban Peri-urban Deep rural Less Connected No access
than 1 km
Tertiary and 1.5 100 85 85 15
training
Secondary 17 17 29 54 46 27 54
Pre-primary, 82 6 12 82 21 5 79
primary, and
post-primary
Source: Uganda Indicative Rural Electrification Master Plan, 2008.

Photovoltaics for Community Service Facilities | 1

ADVANTAGES OF PV FOR In off-grid facilities, such as primary schools or rural health
OFF-GRID FACILITIES dispensaries, PV systems offer an appropriate way to run
many low-power, high-value appliances and equipment for
For many community service facilities in remote areas facility services and staff housing: lamps, vaccine refrigerators,
beyond reach of the national grid, PV systems may offer water pumps, television sets, computers, and phones. Thus,
the most practical and least-cost way to access electricity. if the electricity grid is not expected to arrive in the near future
A PV system, which uses predictable solar resources, has and if diesel fuel is unavailable or too costly, a PV system may
long been cost competitive with diesel generators and other be the least-cost technology for providing electricity service.
alternatives. A PV system is simpler than diesel to operate,
can be deployed quickly, and has low operating costs. It Declining costs and strong growth
requires minimal service, making it suitable for hard-to-
reach communities, and has a low environmental impact. Two encouraging market trends are the: (i) resumption of
Moreover, the PV technology is mature, making it possible to declining costs of PV modules, following several years of price
standardize modular components and systems. increases caused by a short-term shortage of polysilicon
semi-conductor materials (Figure 1); and (ii) rising international
PV production (33 percent compound annual growth) (Figure
2). These key trends, both of which are expected to continue
over the medium term, reflect growth in major grid-based
markets and advances in technology, sales volume, and
competition driven by policy-based incentives for low carbon
growth efforts and consumer interests in the same markets.

Though representing a steadily declining and now small

fraction of the international market, the off-grid market
benefits from the industry’s price declines and production
advances. 2 At the same time, the costs of running a diesel
generator—the most common alternative supply option for
many off-grid facilities—continue to rise along with increases
in the price of fossil fuel.

For rural schools in remote areas, PV systems may offer the least-cost
solution for electricity access. Eastern Cape Province, South Africa.

FIGURE 1: DECLINING COSTS OF PV MODULES FIGURE 2: PV INDUSTRY GROWTH SHOWING MWP

SALES, 1981-2009

5.6 8000
5.4
7000
5.2
5.0 6000
Price Per Watt Peak

4.8 5000
4.6
4.4 4000
4.2 3000
4.0
3.8 2000
3.6 1000
3.4
0
3.2 1981 2009
3.0 -1000
June 2007 October 2010
Off grid % total Off grid Y/Y %
Euro (€) United States ($)
Total off grid MWp connected Y/Y %

Total industry MWp Grid connected MWp

Source: www.solarbuzz.com/Moduleprices.htm Source: Paula Mints, Navigant Solar Services Program, 2010.
See footnote 2 for details.

2 The off-grid market share of global MWp sales declined from 25 percent in 1999 to 2.5 percent a decade later; see data from Paula Mints, (www.
navigantconsulting.com/downloads/FinalSupplyNums2009.pdf) and Photovoltaics World, Vol. 2010, Issue 2 (March) (www.electroiq.com/index/
photovoltaics.html).

2 | Photovoltaics for Community Service Facilities

Increasing supply of energy-efficient
lights and appliances

International markets also have a growing supply of energy-

efficient lights and appliances. By allowing smaller-size PV
systems to support the same level of demand, energy-efficient
devices can increase the competitiveness of PV systems as
the option of choice for small off-grid facilities. Using low-
wattage lights, laptops, television sets, DVD players, and other
appliances reduces the required PV system size, lowering the
costs of investment, maintenance, and replacement without
affecting the level or quality of service.

PV SYSTEM COMPONENTS Solar PV systems installed under the World Bank/GEF funded Rural
AND CONFIGURATIONS Power Project using SSMP business model. Panobolon Village,
Guimaras, the Philippines.

In off-grid facilities, PV systems are either stand-alone or

centralized configurations that serve multiple units. The is an issue at the time of replacement. Modified car batteries
systems deliver either direct current (DC) or alternating are lower priced and may be locally available; however, they
current (AC). The main system components are the PV panel, need to be replaced every two or three years. The cost of
battery, and charge controller; in addition, an inverter is used periodic replacement may well be a concern for budget-
in systems that deliver AC electricity. constrained organizations. Thus, deciding how to handle
battery replacements should be tenaciously addressed
PV Panel. The PV panel or module consists of cells of thin during project preparation.
semi-conductor material that convert radiation from the sun into
DC electricity. The panel is covered with a transparent material Charge Controller. The charge controller protects the
that is sealed for waterproofing and framed for easy mounting. system investment and can lower life-cycle battery costs.
Panels are mounted in a sunny location (shade decreases It regulates the power from the panel to the battery, stops
performance) at a tilt, with the angle equivalent to the site’s the charging when the battery is fully charged, and cuts off
latitude, but not less than 15 degrees to facilitate run-off of the power from the battery to the loads when the battery is
rain and dust. Monocrystalline and polycrystalline silicon and depleted below a safe level. Robust charge controllers with
amorphous silicon (thin film) panels certified to international established track records that can optimize usable power
standards with up to 25-year manufacturer warranties are delivered by the PV system are available.
generally a safe choice, although when companies go out of
business or multiple mergers and sales occur, the practical Inverter. The inverter converts the battery’s low-voltage DC
viability of their warranties may come into question. electricity into standard AC voltage output, permitting the
connection of a wide range of electrical appliances. If the
A good supply of monocrystalline and polycrystalline panels system is used to power DC loads exclusively, an inverter is
is available; at the initial power level, they have a longer life not needed.
span and are more efficient than amorphous silicon panels,
thus requiring less space and possibly a lower balance of Choice of configuration depends largely on the level of
system cost per watt. The long-term trends of declining energy required and the physical layout of the off-grid facility.
costs and increasing conversion efficiencies for PV panels For smaller community service facilities, stand-alone PV
are projected to continue. Panel costs now represent 35–40 systems may be the most cost-effective solution to meet
percent of initial installed system costs. electricity-service and reliability requirements. For facilities
across multiple buildings, whose energy demand is greater,
Battery. PV batteries, which store the energy generated by one or more centralized or hybrid systems may be more
the panels, are easily the most problematic component of cost-effective, depending on the site layout and distances
the off-grid PV system. They are also the most expensive between buildings. At sites with diesel generators already
component on a life-cycle basis. Deep-cycle, lead-acid in use, a PV/diesel hybrid system may be the best option. If
batteries, with a life span of 5–10 years, are well-suited to PV wind resources are plentiful, a wind/PV/diesel hybrid may be
systems, although they often are not available locally, which the answer (Figure 3).

Photovoltaics for Community Service Facilities | 3

FIGURE 3: TYPICAL CONFIGURATIONS OF OFF-GRID PV SYSTEMS

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REVERSING PATTERNS OF LOW older ones. But such an approach, whose sustainability
SUSTAINABILITY has depended on the chain of donor projects, is
ultimately wasteful. As the PV technology has matured,
Social-sector projects with off-grid community facilities often the confounding issues have increasingly centered on
use solar PV systems to generate the electricity needed for institutional factors, which are pivotal to project success or
services and staff. But sustaining PV system operation at failure. In practice, this means that, during project formulation,
facilities in poor, remote communities can be problematic. greater attention must be paid to institutional frameworks
Without providing repair and maintenance, many systems and operational details for the post-project period (e.g., the
become inoperative after 3–5 years. Reliable, long-term minutiae of running costs, ownership, maintenance, and
operation requires that PV systems be well-designed and user controls), along with the usual attention given to project
installed, using equipment of sound quality. Equally, if not budgets, procurement, launchings, and disbursements.
more, critical are the institutional arrangements to ensure
uninterrupted recurrent funding for maintenance, repairs, Such issues have long been dealt with in the case of PV
component replacements, and spare parts. When any of vaccine refrigerators. The World Health Organization (WHO)
these elements is missing, done poorly, or done in ways reports that more than 5,000 such refrigerators were
inappropriate to the context, system failures can result. operative by 1996.3 Though not problem free, their operation
has enjoyed a better sustainability track record than other PV
In the past, technical reasons have often been cited for systems in off-grid community facilities (Box 1).
system failures. In some cases, it has appeared easier to
procure and install new systems rather than rehabilitate

3 For details, visit http://apps. who.int/inf-fs/en/fact132.html

4 | Photovoltaics for Community Service Facilities

 BOX 1: SUSTAINABILITY OF PV
VACCINE REFRIGERATORS

Key factors that have contributed to the sustainability

of PV vaccine refrigerators are:

• robust equipment,
• system designs and standards with high reliability
requirements,
• international system for qualifying equipment,
• stand-alone-operation (not integrated in a system
with other applications),
• periodic training of users and technicians,
• good maintenance discipline,
Low sustainability has been a challenge in remote communities. Eastern • enforcement of use rules,
Cape Province, South Africa.
• reliable tracking of system performance,
• sustained recurrent funding, and
Indeed, without robust institutional arrangements, the • community support (in some cases).
technical problems that inevitably arise with off-grid PV
systems, as with any other power source, cannot be Source: Data on the 2007 shift of WHO and UNICEF to improved
adequately addressed (Box 2). methods for setting performance standards and testing and
qualifying equipment is available at http://technet21.org/Tools_
and_resources/pqsdocs.htm
The range of potential technical and institutional
combinations available for any community facility depends
much on the local context (though obviously, some
imperatives flow from the technology). At the same time, the most approximate of assumptions; (iv) system sizing
there is a paucity of relevant time series data on the and specification by a single “expert” working without
comparative operation of PV systems installed using various independent professional technical review; (v) adoption of
technical and institutional approaches. Facility managers the contracting method that fits the practices and interests
seeking PV solutions to fit their local contexts face similar of the lead organization or donor; and (vi) protracted
questions: What technical and institutional requirements are system procurement, delivery, and installation. Iterations or
most essential? What are the key options to consider? What loopbacks in the institutional and technical design process—
are the major pitfalls to avoid? often responses to budget limitations, political imperatives,
or procurement procedure concerns—are generally seen as
The key aim should be sustainability, which at the minimum troublesome bumps hindering the pace of implementation.
is the reliable, cost-effective operation of a system over its Once system installations and disbursements are completed,
design lifetime. Any PV system presented at the design implementation, from the funder’s perspective, is ended.
stage as the least-cost solution for powering a school or
clinic will only succeed as least cost if it operates over the By contrast, a more sustainable approach would:
long term. Table 3 offers basic guidance on sound practices
for mitigating the risks of developing and implementing PV • address comprehensively both technical and institutional
projects in rural community service facilities. requirements, including post-project maintenance and
recurrent funding;
• incorporate internal loopbacks during the planning
PREPARING A SUSTAINABLE PROJECT process to consider trade-offs and facilitate inputs of
communities, PV experts, procurement specialists, and
The preparation of PV system projects for multiple other stakeholders early and persistently throughout the
community facilities has too often followed a linear process: process; and
(i) identification of a need (e.g., electrify 100 primary • include consultations with independent specialists
schools) based on abbreviated assessments; (ii) quick to take advantage of a wider body of technical and
decision to use solar PV; (iii) setting a budget based on institutional experience and expertise.

Photovoltaics for Community Service Facilities | 5

 BOX 2: LESSONS FROM THE ZAMBIA SOCIAL INVESTMENT FUND

In 2000–05, the Zambia Social Investment Fund (ZAMSIF) No Provision for Continuity of Maintenance. Beyond
disbursed US$6 million under the first phase of a World the supplier’s initial 6 months of maintenance and
Bank–supported project for PV system supply, installation, the defects liability period, specifications on handling
and initial 6 months of maintenance (Table 7). These maintenance tasks were insufficiently defined. The health
disbursements made ZAMSIF the dominant buyer in and education ministries retained system ownership,
Zambia’s PV market. Anecdotal evidence indicates that even though they lacked the procedures, capacities,
system quality and installations improved over the 5-year and budgets for supporting them. ZAMSIF preferred
period; yet sustainability remained a major issue. There is no that the ministries contract local firms for maintenance
database of systems installed and performance, a necessary services, but this was seldom done. Over time, trained
tool for accurate tracking and managing of sustainability. staff moved on, manuals were lost, components were
not repaired or replaced, and stolen panels were not
Vague Specifications and Difficult Bid Evaluations. recovered or replaced.
Initially, bidders proposed various system configurations,
sizes, components, and quantities, which made bid Weak Institutional Context. ZAMSIF’s approach was
evaluations and verifications of the quality supplied in line with the government policy aim of decentralization.
problematic. Later, using the World Bank’s Standard But management, financial, and technical capabilities at
Bidding Document (SBD) for Goods, ZAMSIF specified district, sub-district, and community levels were weak.
the systems (with specifications prepared by a ZNTB lacked the capacity to evaluate PV tenders; and
consultant), yet bid evaluations remained a major hurdle. ZAMSIF’s location in the Ministry of Finance and National
Indeed, the second time the SBD for Goods was used, Planning was itself an issue.
the Zambia National Tender Board (ZNTB), which had
cleared the bid documents and procedures, rejected Organizational Silos. While ZAMSIF was conducting PV
ZAMSIF’s technical evaluation. The bid documents, procurements, a rural electrification master plan was being
including specifications for sizing and batteries, were prepared, regulatory arrangements for grid and off-grid
revised and then used successfully in two procurements. electrification were being introduced, a rural electrification
Weak Bidder Qualifications and Performance. The agency was being established, and three PV system-
bidder qualification requirements allowed firms with based energy services companies (ESCOs) were being
no experience in PV system supply, installation, and piloted. Not being organizationally linked to the energy
maintenance to win contracts. Lacking quality-assurance sector, ZAMSIF operated independently of these parallel
controls, the suppliers subcontracted installations to efforts. This compartmentalization was mirrored on the
smaller firms. ZAMSIF officials considered inadequate on- World Bank side. While ZAMSIF’s initial model was based
site supervision by the relevant ministry staff, rather than on a World Bank bid document from a China project,
supplier practices or capabilities, as the major concern, consultations with the Bank’s energy-sector specialists
and developed improved on-site preparation, verification, did not occur until 2004, when the team preparing a
and supervision procedures; trained additional ministry project with off-grid PV systems reviewed ZAMSIF’s
staff; and later contracted consultants to carry out quality practices as part of its assessments of the PV sector.
assurance on a sample basis. The reviews resulted in recommendations for introducing
a range of best practices, including increased use of DC
Lack of Standardized Systems. Systems for staff (rather than AC) lights and appliances, sizing, standards,
houses were not standard solar home systems (SHS); standardization, warranties and guaranties, supplier
rather, a wide range of systems was used to meet the quality assurance, spare parts, and maintenance.
varying building designs and staff levels of the various
sectors. This complicated supervision of installations and
training and later management and control of spare parts
and maintenance.

Source: Authors’ observations and information provided by Wedex Ilunga, 2010.

6 | Photovoltaics for Community Service Facilities

TABLE 3: BASIC GUIDANCE TO MITIGATE RISKS OF PV PROJECTS IN COMMUNITY FACILITIES
Risk Guidance
Wrong technology choice, (trading Compare life-cycle costs (not only initial capital costs) of alternatives.
current low costs of diesel generator
against high future costs). Determine whether communities can receive electricity from the grid. Rural
electrification plans are famously uncertain (e.g., when communities are connected,
Sudden, unexpected grid they may be subject to local and national politics or decisions of external donors).
extension and energization. Bringing a “connection” is not synonymous with “bringing electricity.”
Procurement and implementation Involve/build PV procurement capacities of lead organization and funder early on and
rollout delays. persist throughout the design and preparation stages.

Design contracts with detailed technical specifications and strong certification,

warranty, and commissioning conditions.

Standardize to as few “building blocks” as possible.

Closely supervise equipment supply and installations.

Poor-quality, inefficient designs Ensure technical system design by well-qualified PV specialists aware of current best
and equipment. practices and not linked to potential suppliers.

Over- or under-investment in Consult with off-grid PV specialists and seek independent review.
wrongly-sized systems of too high
or low quality. Design PV systems via an iterative process, considering:
• current and near-term energy use (the introduction of electricity may result in such
unanticipated demands as extended TV viewing or cell-phone charging);
• best available solar resource data from vicinity or databases that extrapolate resources;
• energy-efficient lights and appliances (but do not set the number of lights or
lighting quantity or quality too low);
• good-quality components, using international or equivalent standards for panels,
batteries, controllers, and energy-saving lights (don’t skimp);
• budget capacities to meet the recurrent costs of maintenance, repairs, and
component replacements; and
• local O&M capacities, including suppliers and maintenance providers at central,
regional, and local levels.
Lack of funds for battery Include community participation in preparation.
replacements result in system
shutdown. Establish system ownership.

Misuse, poor maintenance, Secure firm commitments for recurrent budgets for maintenance and component
and lack of maintenance or replacements. Consider beneficiary participation in funding O&M.
troubleshooting skills.
Decide on in-house or outsourcing maintenance, and build local-service capabilities
“Sudden” failures due to lack of accordingly.
system performance tracking and
supervision. Fix and enforce rules for system use and maintenance.

Be clear on the limitations of PV systems (e.g., they are not for ironing, cooking, or heating).

Ensure user training in appropriate use and load-management practices.

Track PV system maintenance and performance to anticipate and address problems

before failures occur.

Closely supervise contract implementation, maintenance, and performance.

Adverse environmental impacts. Arrange recycling or disposal of light bulbs (e.g., CFLs or fluorescent tubes that use
Theft and vandalism. mercury) and lead-acid batteries.

Identify any security risks and mitigating measures.

Consult and create strong awareness to align community and staff expectations with
sustainability of PV systems.
Source: Authors’ observations, 2010.

Photovoltaics for Community Service Facilities | 7

These preparation elements should be incorporated into a development and implementation and provides the basic
four-phase process: guidance on key risks and mitigating measures, which can
serve as a checklist for discussions with PV and other experts.
1) Rapid assessment (time required: 1 week–1 month). For the specialists, the toolkit provides many of the details and
The rapid assessment of the project scope determines references for current best practices.
whether PV is the most cost-effective solution and the
implementation models available; this could be done The toolkit is neither a manual for PV system design,
largely by the task team leader and would result in a installation, and maintenance nor a substitute for using
tentative project concept and preparation plan for main professional PV specialists to size, configure, and specify
stakeholders to consider. system and maintenance requirements. Rather, the aim is
2) Preparation of the PV implementation plan (time to offer practical guidance for assessing, developing, and
required: 1–3 months). This second phase would be implementing projects with PV systems in ways that enhance
accomplished with the assistance of several specialists, cost-effective supply and sustainable operations. The
including a PV technical specialist, and would involve assumption is that organizational budgets are constrained
working closely with lead organization managers and that reliable system performance over 10 or more years
and specialists, wide stakeholder consultations, and is mission critical.
multiple iterations.
3) Procurements and contract management (time The organization of this toolkit reflects the four-phase
required: 1 year for contracting and start of project approach set forth above. Thus, Part 2 presents
installations). This phase would involve securing firm the rapid assessment, Part 3 details preparation of the
financing commitments (including those for recurrent PV implementation plan, Part 4 covers procurements and
costs); developing the tender packages; tendering and contract management, and Part 5 addresses long-term
contracting; installations; maintenance; and PV system operation. Part 6 concludes, and annexes provide added
performance tracking, monitoring, and supervision. information and links to tools and resources to assist
4) Long-term operation (time required: 20 or more managers and practitioners in building their knowledge of the
years). The final phase is the maintenance and operation, issues to better inform their decisions.
including the financing of component replacements, over
the expected lifetime of the PV systems.

TOOLKIT BASIS, AUDIENCE, FOCUS

AND ORGANIZATION

The observations and guidance presented in this toolkit are

based on the first hand, on-the-ground experience of the
authors and other team members with the development and
supervision of PV projects and activities in more than 20
countries over the past 15 years in the Africa, Latin America
and Asia regions. They also draw on the reviews of a May
2010 Dar es Salaam workshop of PV experts and project
specialists, as well as from the July 2010 peer-review carried
out by a group of World Bank renewable energy specialists.
While there is no comprehensive compilation of projects
with PV systems in community facilities, nor any randomized
testing, the findings suggested by this significant experience
base will be of operational interest to those with key roles
in the development of sustainable off-grid PV investments.
The target audiences are project developers, managers and
practitioners working with organizations that fund or operate
projects with PV systems at multiple-site facilities (e.g., sector
organizations, such as health and education ministries, rural
electrification agencies, local governments, non-governmental
organizations and community-based associations). For the
non-energy specialists, it sets out an approach to project

8 | Photovoltaics for Community Service Facilities

 Part 2. Rapid Assessment

The rapid assessment determines whether PV off-grid ASSESS WHY PV SYSTEMS

electrification is a possible option. During this initial phase, ARE BEING CONSIDERED
information is gathered via discussions with lead-organization
management and technical staff, energy-sector specialists, It is useful to clarify the multiple reasons for considering
and representatives of nongovernmental organization PV systems for community service facilities since these
(NGOs), firms, and other organizations and specialists will inform stakeholder expectations, as well as the project
with recent experience in the use of PV systems in off-grid timeline and budget. Some common reasons are to:
community facilities. This work is done in collaboration with
the organization that will eventually own and operate the • Electrify existing off-grid facilities that currently lack
systems. The five key steps in the rapid assessment process, access.
summarized below (Box 3), are discussed in the sections • Electrify new facilities to be constructed.
that follow. • Save money by replacing or combining systems with
diesel generators.

BOX 3: SUMMARY OF KEY STEPS IN THE RAPID ASSESSMENT

1. Assess why PV systems are being considered. the design month. Estimate system sizes using
Are there existing facilities without electricity access, basic conversion ratios and estimating factors.
new facilities yet to be constructed, high costs of 4. Estimate PV system costs and least-cost
operating existing diesel generators, new services option. Calculate investment costs using
that require electricity to be introduced, or difficulties broad ranges (e.g., US$14–19 per Wp) based
in recruiting and retaining staff without electricity? on recent national or regional procurements.
2. Determine which, where, and how many Estimate operating costs as a fixed proportion of
facilities and which services to cover. Develop investment costs. Determine the least-cost solution,
concept and initial scope based on discussions with comparing life-cycle costs per kilowatt hour (kWh)
main stakeholders and reviews of readily available of PV systems against grid extension and diesel
data. Assess quality of information and identify data generators, using standard cost curves.
gaps. If water pumping services are considered, 5. Decide on implementation model and
separately estimate their requirements, costs, and institutional and technical details. Identify initial
possible implementation models. implementation options for supply, installation, and
3. Determine the energy requirements and PV operation with key stakeholders. Estimate total
system sizes. Estimate energy demand using costs by applying margin to estimated investment
country and international norms for main strata of costs. Agree on project preparation strategy,
facilities. Assess available information on country responsibilities, requirements, and timing. Consult
experience. Source solar-resource data from with independent specialists, including off-grid
websites or maps; use month of least sunlight as renewable energy specialists.
Source: Authors’ observations, 2010.

Photovoltaics for Community Service Facilities | 9

 • Use funds that are available for renewable energy In terms of services, the aim at this stage is to clarify the
systems (with PV being the one that main ones to cover, those considered high priority and those
can be deployed most quickly). not likely to be covered. For example, classroom computers
• Support specific services (e.g., computer-based and lighting might be covered, while color-television viewing
distance education or the vaccine cold chain). using satellite receivers for staff housing may not. In some
• Respond to community requests. cases, service levels will have already been determined;
• Recruit or retain staff in remote areas. for example, the education ministry may have established
standards for lighting and other services for various levels
In certain cases, it may appear easier to procure and install of school. In short, this is a first iteration in balancing
a new system under a new project rather than repair or expectations, levels of service, and costs.
replace the batteries of a system installed under a previous
one. But such an approach, which can only be sustained
for as long as the chain of donor projects lasts, is ultimately DETERMINE ENERGY REQUIREMENTS
wasteful.4 In such cases, rehabilitating older systems should AND PV SYSTEM SIZES
be considered, along with putting in place viable long-term
maintenance and funding arrangements (Part 5). If information is available on the service requirements of each
type of facility, an initial estimate of their energy requirements
can be built up (Annex 1).5 This can be done in daily watt
hours, adding a margin for near-term growth, as well as for
any underestimation of requirements. The wattage of the
lights and appliances to be used in each type of facility is
multiplied by the number of hours they would be used each
day. If this information is not available, it is possible to do a
quick estimate using national or international norms for the
various types of facilities (Annex 2).

Identify solar resources

The PV system size needed to meet the energy requirements

depends on a site’s solar resources, which are calculated in
daily peak sun hours (PSH). PSH levels can vary significantly
within a country and by season of the year. It is good
practice to use the month of lowest solar radiation on a tilted
New system installed alongside non-working system. Panobolon Village,
Guimaras, the Philippines. plane in each region as the design month for sizing systems.
For most locations, monthly PSH on a tilted plane are
available on the websites of various organizations, including
DETERMINE WHICH, WHERE, AND HOW the Photovoltaic Geographical Information System (PVGIS)
MANY FACILITIES AND WHICH SERVICES of the EU Joint Research Council and NASA’s Atmospheric
Science Data Center.6
A first estimate of the types of facilities, the numbers of
each type, and their locations can usually be done using Calculate the PV system array size
information from organizations on their rural facilities,
services, and electricity-access status. In doing this, the The output of a PV panel is rated in watt peaks (Wp). PV
data gaps and quality and scope of available information systems can be sized by calculating the Wp size or array
will become clear. In some cases, GIS mapping will have of PV panels necessary to meet the estimated energy
been done; for others, the only available information will requirements, taking into account normal technical losses
be uncertain and outdated, requiring considerable effort to by each component. In later iterations, the impacts on
generate basic data during the planning process. Indeed, in system size and costs of more or less energy-efficient lights
many cases, information on whether facilities already have and appliances, higher or lower levels of requirements
PV systems or whether existing systems are functional may for service reliability, and other design choices can be
be unavailable and will have to be collected later. assessed. At this stage, however, we are seeking only a
first estimate of system sizes.

4 In some cases, donor funds have been used to successively install multiple PV systems at the same facility.
5 Initial estimates can be done using available information on solar resources and basic data and rules of thumb on electricity requirements and costs.
6 http://re.jrc.ec.europa.eu/pvgis/; http://eosweb.larc.nasa.gov/sse/

10 | Photovoltaics for Community Service Facilities

 TABLE 4: ESTIMATED DAILY ENERGY TABLE 5: PV SYSTEM COMPONENT COSTS
REQUIREMENTS AND PV SYSTEM SIZE Cost Cost Comments
Appliance Units Watts Use Wh/ component
(no.) (W) (hrs/day) day System US$14–19/Wp Major costs are PV
Lamp 4 11 3 132 supply and panels (36%) and
Laptop 1 40 5 200 installation batteries (25%,
depending on battery
Radio 1 15 8 120
type and quality).
TV 1 50 3 150
Maintenance, 10–15% Operating costs are
Other 2 30 2 120
repairs, and of initial about 50% of total
Subtotal (Wh) 722 replacement investment life-cycle costs; battery
Margin near- 0.2 144 of battery costs/year is the most expensive
term growth and other component on a life-
Energy demand 866 components cycle basis.
(per day) Other Institutional density,
Margin technical 0.4 347 quality of roads, location
losses of service center,
and other logistical
Gross energy 1,213
factors are important
use (Wh/day)
determinants of
PSH (hrs/day) 5
operating costs.
PV system array 250 Source: Authors’ calculations, 2010.
size (rounded
up) (Wp)
Source: Authors’ calculations, 2010.
TABLE 6: TYPICAL PV SYSTEM COSTS FOR SMALL
SCHOOLS AND HEALTH CLINICS
With the estimates of the energy requirements and solar
Facility Electricity PV system
resources, the system size in Wp required for each facility
type requirements initial cost
can be estimated. This is done by dividing the total
(kWh/day) (US$)
requirements in daily watt hours (Wh) by the number of PSH,
Health clinic (health 1.5–7 4,500–
and then adding a margin, say 40 percent, for technical
centers, dispensaries, 40,000
losses (Table 4).
and health posts)
ESTIMATE PV SYSTEM COSTS Small primary school 2–5 7,700–
AND LEAST-COST OPTION (200–400 students; no 26,000
boarding facilities)
Initial estimates of system investment costs can be done Source: Authors’ calculations, 2010.
using broad unit costs based on information gathered
locally and from recent local and regional procurements. In
late 2009, total costs for communities in East Africa were for rural extension of the national grid, site-specific renewable
US$14–19 per Wp for the supply and installation of off-grid resources (e.g., solar, wind, and hydropower), diesel prices,
PV systems (including lights, wiring, and some capacity issues of access and logistics, and resources and requirements
building); vaccine refrigerator systems (vaccine refrigerators of funding sources. Assessing the least-cost option and the
and solar water pumps are usually supplied as a single types of PV systems and configurations to consider can be
integrated package) cost US$16–19 per Wp (Table 5). done fairly quickly with information on facility locations and their
energy demands, availability of and potential for grid connection,
Most community facilities in off-grid communities that are and diesel-fuel affordability and reliability of supply (Figure 4).
candidates for PV systems are health clinics and primary
schools. The installed costs per facility currently range Plans for grid extension are a major consideration.
from US$4,500 to $40,000 on average, depending on the Unfortunately, rural electrification decisions and timing are
size and whether appliances are included in the PV supply typically subject to strong political and other pressures, often
contract (Table 6). making it difficult to foresee when particular communities
will be connected. If a rural community is likely to receive a
Choosing the least-cost technology. The technology grid connection within five years, its facilities are not likely
options for facility electrification depend on a range of factors. PV system candidates. A key aspect to consider, however,
Key among them are distance from the electricity grid, plans is whether and when a grid extension will be energized.

Photovoltaics for Community Service Facilities | 11

While poles and wires may be installed, thus meeting a compared in terms of their life-cycle costs of energy (LCOE)
narrowly-defined electrification-access target, the grid may in dollars per kilowatt hour ($ per kWh) and, because of its
not be energized for lack of energy supply or other reasons, practical importance for any budget-constrained organization,
meaning that the energy-demand requirements of the their operating costs. The LCOE is calculated in present-value
community facility will not be met. terms, discounting both the costs and benefits (kWh) over the
typical 20 years used in appraisals of PV investments. The
Interim or alternative options. For communities that will cost is the initial investment plus the present value of all future
not be grid connected in the near term (or for whom a grid costs of component replacements, O&M expenses, and
connection may not be energized in the near term), a diesel any other costs over the lifetime of the investment. The kWh
generator may be the preferred interim, pre-electrification benefit is the present value of daily usable energy production
option (Figure 4). Other alternatives may include LPG or of the system over the same period.7
kerosene lighting and refrigeration. However, for lighting, there
is a significant qualitative difference between kerosene and To compare the costs of a grid extension, a diesel generator
electricity. Also, the risk of fuel-price increases, coupled with set, a diesel-PV hybrid, and a stand-alone PV system, cost
the inability of ministries or agencies to assure an adequate curves have been developed. At a discount rate of 6 percent
and timely supply of fuel, must be taken into consideration. over 20 years, PV systems will be the most cost-effective
solution for: (i) small schools, health posts, and other facilities
Life-cycle costs of energy comparisons. The initial cost located more than 1 km from the grid with daily energy
of supplying and installing PV systems is too often the most requirements less than 3 kWh; and (ii) institutions farther than
prominent cost metric during project preparation, which 3 km from the grid with daily energy requirements of up to 15
can contribute to distorted investment decisions. The cost kWh. Though LCOE estimates are sensitive to the discount
effectiveness of PV systems and other options should be rate, with diesel generators becoming comparatively more

FIGURE 4: DECISION TREE FOR LEAST-COST TECHNOLOGY CHOICE





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7 Web-based tools for sizing and configuring PV systems and comparing life-cycle costs of PV systems, grid extensions, diesel generator sets, diesel-
PV hybrids, and other options are publicly available free of charge; these include RETScreen (www.retscreen.net/) and HOMER (www.homerenergy.
com). Even if not used in initial preparation, they are useful as a due-diligence cross-check of both technical design and costs. NASA’s renewable
energy website provides data on solar insolation and links to RETScreen and HOMER (http://eosweb.larc.nasa.gov/sse/).

12 | Photovoltaics for Community Service Facilities

cost-effective as the discount rate rises, the relative rankings Caution: Battery replacement costs. While low running
of cost effectiveness of the technology options for small costs are a feature of PV systems, battery replacements
facilities remain unchanged as the discount rate is raised to require relatively large, periodic payments that often are
12 percent (Figure 5). not easily accommodated by organizations accustomed to
modest or negligible annual budget increases for operating
Annual operating costs. Compared with diesel generator expenses (Figure 7). In these cases, a carefully managed
sets, PV systems offer significantly lower operating costs escrow fund could be part of the solution. As a prudent
(Figure 6). With no fuel expenses, the running costs of PV rule of thumb, annualized recurrent costs can be estimated
systems are mainly for periodic component replacements at about 15 percent of the installed cost of stand-alone
and maintenance. For organizations with difficulties meeting systems, which would cover periodic replacements of major
recurrent budgets, the attractiveness of PV systems is often components, routine maintenance, and repairs. It would also
that of avoiding the high recurrent costs and hassles of include what is frequently not anticipated: support for essential
purchasing, transporting, storing, and controlling diesel fuel. tracking of system maintenance and performance, higher-level

FIGURE 5: COMPARISON OF LIFE-CYCLE COSTS FOR PV AND OTHER OPTIONS

5.0
Grid 3km
4.5

4.0 Grid 1km

3.5
CoE US$/kWh

Diesel
3.0

2.5 Hybrid PV/die

2.0
PV
1.5

1.0

0.5

0.0
0 .5 1 3 6 9 15 25

Load: kWh/day
Source: Authors’ calculations, 2010.
*6% DR; 20 yer life; diesel US$1.1/litre delivered; grid extension at US$15,000/km; grid elect US$0.22/kWh

FIGURE 6: COMPARISON OF LIFE-CYCLE OPERATING COSTS FOR PV AND OTHER OPTIONS

5.0
Grid 3km
4.5

4.0 Grid 1km

3.5
CoE US$/kWh

Diesel
3.0

2.5 Hybrid PV/die

2.0
PV
1.5

1.0

0.5

0.0
0 .5 1 3 6 9 15 25

Load: kWh/day

Source: Authors’ calculations, 2010.

*6% DR; 20 yer life; diesel US$1.1/litre delivered; grid extension at US$15,000/km; grid elect US$0.22/kWh

Photovoltaics for Community Service Facilities | 13

FIGURE 7: ANNUAL COSTS (US$), 800 WP OVER 20 YEARS

15000

12000

O&M
Cost US$

9000
Electronics

6000 Battery

3000
Capital

0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

Source: Authors’ calculations, 2010.

troubleshooting, and supervision. Failure to budget for and the exit of donor support. An evaluation of the experience
fund recurrent costs is often the major factor in system failures. in sub-Saharan Africa with hand pumps and the Village
Level Operation and Maintenance approach, developed and
WHETHER TO INSTALL A PV WATER PUMP promoted with World Bank support, concluded that “there
are no ‘off-the-shelf’ solutions...and no simple solutions
Over a wide range of small- and medium-scale requirements, on the horizon.”8 Because many rural clinics and schools
including the needs of most rural primary schools and health share their water supply with the local community, the water
clinics, PV pumps offer a practical, least-cost solution. requirements and pump and PV array sizing may go well
beyond those of the community service facilities, thereby
Advantages and Potential Drawbacks complicating any decision on whether to install a solar
pump. Furthermore, unlike the PV systems for community
For small-scale facilities, solar PV pumps require no batteries; facilities, which can be standardized to a relatively few
the water tank, typically holding 3–5 days of supply, acts as models and fairly rapidly deployed, PV water pumps require
the storage technology. This avoids most technical losses, more customization, time, and engineering input (pumps
the high costs of periodic battery replacement, and other must be designed and drawn for each unique site and well),
maintenance and management issues commonly associated and a wider range of installation skills. The required time
with PV systems. Compared to diesel generators, PV pumps for procurement and rollout of installations across multiple
have minimal operating and maintenance requirements. facilities at multiple sites may not mesh well with those for PV
They automatically turn on and off, and can operate at low systems for rural schools, health clinics, and other facilities.
flow rates during the day, allowing more hours for the well
to recover. Those for most small-scale facilities use DC Preliminary screening
power from the PV modules, thereby avoiding the cost and
technical losses of an inverter. The recent development of Whether PV pumps are the most cost-effective solution
pumps that combine a PV array with a variable frequency for a particular organization with multiple-site facilities and
inverter make it possible to use AC power, further extending a limited time frame for implementation depends on many
the viability of PV water pumping. site-specific factors, including the amount of water required,
its availability and at what depth, and the costs of drilling
Off-grid, community-operated PV water pumps and PV tube wells. A number of questions can be asked and a
systems for community service facilities confront similar limited amount of data quickly collected to decide whether
sustainability challenges involving ownership, maintenance, PV pumps should be further considered. With the assistance
recurrent funding for spare parts and repairs, management of a PV engineer, an initial assessment can be made on
and control, and long-term operation after installation and whether solar water pumping is likely the least-cost solution.

8 Jeremy Colin, VLOM for Rural Water Supply: Lessons from Experience, Task No. 162, Task Management and Quality Assurance by Andrew Cotton,
London School of Hygiene and Tropical Medicine, WEDC, Loughborough University, March 1999 (www.lboro.ac.uk/well/).

14 | Photovoltaics for Community Service Facilities

Initial questions Answers to the above questions will determine how much
water will be needed, whether it is available, and, if so, the
How much daily water is required? National standards for volume head per day and a rough estimate of the size of
daily water requirements per person are often available. For the PV array needed to lift the water, which may assist in
rural off-grid communities, a typical amount is 20–40 liters the initial cost estimate. It should be noted that this level of
per day. Depending on the facility and such factors as who investigation must be done separately for each pump site
will use the water (e.g., the community or the facility only), under consideration.
the daily water requirement can be estimated.
Topics for quick feasibility questions
What is the “head” that the water must be lifted? The
total dynamic head that a pump must lift water is a combination Life-cycle costs. Screening for the lowest life-cycle costs can
of the total height that the water is lifted (measuring the vertical be done quickly using several charts and rules of thumb. On the
lift from the lowest level where the water is pumped to the basis of life-cycle costs (using late 2009 figures), solar pumping
intake level of the water tank), plus the effect of extra pressure is more cost-effective than diesel up to 1,000 m4; at 20 liters
caused by technical losses as the water flows through the per person and a total pumping head of 50 meters, roughly 500
pipes; this extra pressure varies with pipe types and sizes and people could be covered (Figure 8). More detailed estimates
the flow rate. For this first-screening phase, the total head is could be made using a web-based tool made available by the
assumed to be the total height plus 25 percent.9 Namibia Ministry of Mines and Energy.11 If the results indicate
potential feasibility, a technical study would then be required to
Is enough water available? The initial answer may be carefully consider pump types, required number of storage days,
based on the operation of existing wells in the vicinity. In water tank size, and other key factors.
many cases, the interest is to: (i) obtain more water from
an existing well by increasing the yield over a hand pump FIGURE 8: LIFE-CYCLE COSTS OF WATER SUPPLY
not providing the well’s maximum; or (ii) reduce the cost of
5
Pumping cost (USc/m4)

operating a diesel pump.

4
How much energy and what size PV array are needed
to pump the water? At sea level, 1 kWh is needed to raise 3
1,000 liters (1 m3) a total of 367 meters. Thus, if a facility’s
2
total daily water requirement were 4 m3 (e.g., 200 people
at 20 liters each) and the water had to be lifted vertically 40 1
meters (giving a total head of 40 x 1.25 = 50 meters), the
hydraulic energy required would be 0.54 kWh per day (4 0
0 100 200 300 400 500
x 50/367). The “volume head,” or the amount of water in
Volume-head pumped (m4/day)
metric tons (m3) multiplied by the total head (expressed in
m4), would be 200 m4 per day (4 m3 x 50).
Windpump Grid (2km ext.) Diesel
For small-scale applications, DC solar pumps that run Handpump Grid (no ext.)
directly from the solar panels are 30–60 percent efficient; Solar (AC Multistage centrif)
sometimes called “wire-to-water efficiency,” this excludes the Solar (non AC Multistage centrif)
solar panel efficiency. These pumps work only during sunlight
hours. In this example, achieving 0.54 kWh at a site with 5 Source: Energy & Development Group, Solar Pumping for Communities
PSH per day, assuming panel technical losses of 10 percent Technical Guide, prepared for the South African Department of Water
and a pump efficiency of 35 percent, would require a PV Affairs and Forestry (1997). Revised, June 2007.

array of 342 Wp (0.54 kWh per day/35 percent/0.9 percent/5

PSH). This calculation is adequate for a quick approximation, Operating costs. For many facilities, running costs are
but the actual size will depend on the efficiencies of the of more practical importance than life-cycle costs. Our
pump and array combination.10 estimates indicate that solar pumping would have lower
operating costs over a large range; of course, a grid
connection would be cost competitive (Figure 9).

9 Formally, total dynamic head = borehole static water level + borehole drawdown during pumping + lift from the borehole head to the tanks +
dynamic pressure losses.
10 The selection of pump type depends on the facility’s daily water requirement, depth of water source, and total head at the facility site. The choices are
submersible or surface mount and positive or centrifugal displacement There are a number of well-established solar pump manufacturers, each of
which provides performance charts for their pumps, indicating which are suitable for a particular facility.
11 For details, visit www.mme.gov.na/energy/pvp.htm

Photovoltaics for Community Service Facilities | 15

FIGURE 9: RUNNING COSTS OF WATER SUPPLY FIGURE 10: COSTS OF PV AND NON-PV PUMPS

5 5
Pumping cost (USc/m4)

Pumping cost (USc/m4)

4 4

3 3

2 2

1 1

0 0
0 100 200 300 400 500 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300

Volume-head pumped (m4/day) Volume-head pumped (m4/day)

Windpump Grid (2km ext.) Diesel Windpump Grid (2km ext.) Diesel
Handpump Grid (no ext.) Handpump Grid (no ext.)
Solar (AC Multistage centrif) Solar (AC Multistage centrif)
Solar (non AC Multistage centrif) Solar (non AC Multistage centrif)

Source: Energy & Development Group, Solar Pumping for Communities Source: Energy & Development Group, Solar Pumping for Communities
Technical Guide, prepared for the South African Department of Water Technical Guide, prepared for the South African Department of Water
Affairs and Forestry (1997). Revised, June 2007. Affairs and Forestry (1997). Revised, June 2007.

Least-cost comparison. PV pumps have long filled a Detailed assessment and design
broad niche between hand and diesel pumps as the most
cost-effective option.12 In recent years, as DC pumps have If the outcome of this preliminary screening is positive, a
begun to operate at deeper levels and pump more water more detailed assessment and design should be undertaken
and as the efficiency and cost of both pumps and PV with assistance from PV and water supply specialists and
panels have improved, the niche for PV pumps has steadily community participation in key aspects. In many ways,
grown (Figure 10).13 the supply and installation and operation of solar water
pumps differ markedly from those for PV systems for facility
Over a broad range of heads and water volumes, PV electrification. They may involve civil design and construction
pumps will be likely to be a more cost-effective solution work; site-specific sizing to match depths, tank sizes, and
than hand pumps or diesel generator sets (Figure 11). For distances; control and contamination issues; and various
a volume of 40,000 liters per day, for example, solar is the methods of commissioning and backup technical support.
most cost-effective option for heads of 1–50 meters. Hand The approaches for procurement and bid evaluation
pumps remain more cost-effective for the smallest scale also differ. Most solar water pumps are supplied as an
combinations of liters per day and total head, while diesel integrated package of PV panels, pump, controller, and other
generators are not cost-effective in small installations. Thus, components, with a wide range of combinations of panel and
over a wide range of small- and medium-scale requirements, pump sizes and types. Suppliers provide performance charts
solar pumps are more competitive; these could be surface for each of their respective pumps, which show the size and
mount pumps for well depths of up to 3 meters, and voltage of the solar panels necessary to operate the pumps.
otherwise more expensive submersible pumps. In parts of
Africa, where well drilling costs are high, solar pumps can Additional questions
be more cost-effective than hand pumps, which limit the
amount of water that can be extracted from a well, especially During the detailed design, the community should be surveyed
when the water table is deep. and site data gathered. This process would occur site by site,

12 An assessment conducted in 1987 found that PV pumps were more economical than either hand or diesel pumps in off-grid villages of 300–2,000
people where water-table depths are 20–40 meters; see A. Cabraal, A. Siess, L. Slominski, M. Buresch, and J. Kenna, Comparative Assessment of
Photovoltaics, Handpumps, and Diesels for Rural Water Supply, Technical Report No. SAND87-7015, Sandia National Laboratories, Albuquerque,
NM, 1987.
13 See Ministry of Mines and Energy of Namibia, Final Report: Feasibility Assessment for the Replacement of Diesel Water Pumps with Solar Water
Pumps, 2006; Solar Electric Light Fund, A Cost and Reliability Comparison between Solar and Diesel Powered Pumps, 2008; B. Barlow, B. McNellis,
and A. Derrick, Solar Pumping: An Introduction and Update on the Technology, Performance, Costs, and Economics, World Bank Technical Paper No.
168, Washington, DC, 1993.
14 A guide to community-based assessment of solar water pumping is available at www.greenempowerment.org

16 | Photovoltaics for Community Service Facilities

FIGURE 11: COMPETITIVE RANGE FOR SOLAR PUMPS VERSUS HAND PUMPS AND DIESEL GENERATORS

+($'IW            

+($'P            
RI)DPLOLHV *3' /3'
  
   +$1'38035$1*(
  
Small System
  
   Medium System
   Large System
  
  
  
   636 5$1*(
  
  
  
   ',(6(/*(1(5$7255$1*(
  
  
  
  
  
  
  

Source: Walt Ratterman, Jonathan Cohen, and Anna Garwood, Solar Pumping Systems (SPS): Introductory and Feasibility Guide, 2003, Revised,
January 2007 (www.greenempowerment.org).

with significant participation of the community, as well as the DECIDE ON IMPLEMENTATION MODEL AND
facility owner, staff, and beneficiaries.14 The following list of INSTITUTIONAL AND TECHNICAL DETAILS
survey questions suggests the range of issues to be covered:
• Is there an existing well? If so, what is the level of the water Two major implementation decisions must be made. The first
depth, recharge rate, and water quality? Is it potable? is whether to focus on a single sector, with facilities perhaps
• If there is no existing well, what information is available dispersed throughout the country, or multiple sectors with the
on local water depths, recharge rates, water quality, facilities clustered within an area. The second is whether to
hygiene, and sanitation issues? link with PV market development, including efforts to achieve
• How is water supply currently managed and financed? household access in the same rural communities. Four
• What would the community’s role be in installing, projects in Sub-Saharan Africa and Southeast Asia illustrate
operating, and maintaining a solar water pump? how these options have been variously combined (Table 7).
• How would costs be shared? How would funds be
collected and managed? Would there be charges? What Sector or area based approach?
would be the rate structure if community members were
permitted to access a facility’s water supply? Focusing on a single sector, such as rural schools or
• What licenses or permits would be required for a solar rural clinics can benefit from clarity on implementation
water pump? Is there a government agency responsible responsibilities and procedures, if the procurements and
for the water supply? What would its role be in operation after-installation services are implemented by a well-
of the solar water pump? established organization. An area based approach, which
• Is theft an issue? If so, what measures are currently would typically target facilities in multiple sectors, usually
used or have been suggested to deal with this risk? within a more limited geographical area, will have lower costs
• Is the existing pool of trained PV technicians, for both installation and post-installation maintenance and
professionals, and firms or other entities that provide management if facilities are less dispersed.
maintenance and repair services adequate for the
critical service of water? Both approaches are typically based on procurement,
whereby a ministry or other implementing agency contracts
Separate plan for water supply for supply and installation and perhaps maintenance of
batches of systems. Depending on the local situation, this
Rural community-water supply is a specialized field with approach may be appropriate in contexts where there is little
an established body of good practices. Thus, if a project PV market development or related activities.
decides to include solar water pumping for community
facilities, particularly if the water is shared with the
community, a separate, detailed plan should be prepared.

15 A toolkit for designing and implementing rural water supply projects, entitled “Rural Water Supply and Sanitation for Multisector Projects,” (2004)
is available at www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/07/29/000012009_20050729090303/Rendered/PD
F/331630rev0PAPER0ENGLISH0rwss1pub.pdf

Photovoltaics for Community Service Facilities | 17

Whether to link with market development The Sustainable Solar Market Packages (SSMP) model,
introduced in 2005 by the Philippines Department of Energy
The second implementation choice, whether to link contracts with support of the Rural Power Project, combines an area
for the supply and installation and possibly maintenance of based, multiple sector approach with market development
the systems with PV market development aiming to increase approaches to address the cross-cutting issues of
rural household access to modern electricity services, can sustainability, scale, and affordability. SSMP contracts
be an attractive option in countries that have: (i) a local bundle the supply, installation, and maintenance of systems
PV market or activities that support its development; and in community facilities of target districts with obligations
(ii) a lead institution, such as a rural electrification agency, for the commercial sale of systems to households and
that supports market development. For example, local PV other private customers in the same districts, along with
market development projects already in place (involved incentives and support for market development. Successful
in establishing standards, strengthening rural PV supply SSMP contracts usually require that a significant number of
chains, training technicians, developing local maintenance households be able to afford the PV systems or lanterns;
capabilities and local-language manuals, and developing thus, the SSMP model must address that issue (Box 4).16
community financing mechanisms or providing subsidies
for system installations) could benefit a project that aims to
provide PV systems for community facilities.

BOX 4: SUSTAINABLE SOLAR MARKET PACKAGES: INITIAL LESSONS FROM THE PHILIPPINES

The Sustainable Solar Market Packages (SSMP) tackles units) and that market development supports are in
low sustainability of PV systems in off-grid rural areas, place and functioning.
low sales and high prices of household systems, and • Provide for change orders to adjust to changed
weak after-sales service in remote areas. Contracts for conditions (e.g., political, security, or competition) in
supplying community systems in clustered villages include communities and market.
obligations to sell systems or lanterns to households; • Link progress payments for installations in
also, subsidies and other supports are provided for community facilities to progress on household sales
developing the household market. The aim is to establish as an incentive not to delay household sales.
a business volume sufficient to attract strong bidders and • Facilitate disbursements to contractors (delays
secure business sustainability by spreading the costs of crimp cash flow, which can hamper marketing for
operating in the remote communities over a larger number household sales).
of transactions. By the end of 2009, 18 SSMP contracts • Require contractors to have their own quality
had been awarded to three contractors in three rounds. assurance and, in cases of quality problems, to
By March 2010, systems had been installed in 337 of the cover costs of return verification visits.
347 target villages, but only 300 of the targeted 6,800 • Provide strong supervision and independent
household sales had been achieved. verification capabilities, including PV engineer, in a
timely fashion.
Key recommendations from experience with successive • Fix firm funding arrangements for maintenance
contracts are: before rollout of installations.

• Ensure affordability of household systems and

lanterns (e.g., access to microfinance, small size

Source: Authors’ observations, 2010.

16 The SSMP model relies on private dealers and microfinance capabilities for the required household sales, which are a constraint, despite significant
subsidies and other support for business development, credit, and development of local-service capabilities. Concerned about the scalability of the
SSMP approach in the Philippines given the weakness of private sector capacities in relation to aggressive national targets for off-grid electrification
in the targeted remote communities, the Department of Energy is now piloting fee-for-service approaches using the main distribution utilities (electric
cooperatives) and new concession holders in waived franchise areas under a new regulatory framework in an effort to mainstream PV use for off-
grid electrification.

18 | Photovoltaics for Community Service Facilities

TABLE 7: IMPLEMENTATION MODEL OPTIONS FOR SELECTED PV PROJECTS
Option Zambia Mozambique Philippines Tanzania
(Zambia Social (Energy Reform and (Rural Power Project), (Energy Development
Investment Fund) Access Project) SSMP 2007 and Access Expansion
2000-2005 2009 Project), SSMP 2009
Implementation Sector-based. Area-based, multiple Area-based, multiple Area-based, multiple
type sectors. sectors, with market sectors, with market
development. development.
Location of Widely dispersed Spread out within an Clustered within an area. Clustered within an area.
facilities around the country. area.
Facility types Schools, clinics, staff Health and education Health clinics, schools, Health clinics, schools,
housing, police posts, facilities. community halls, and police posts, streetlights,
and others. streetlights. and staff housing.
Provision Contracts to supply Contracts to supply Contracts to supply, install Contracts to supply, install
approach and install systems in and install systems in and maintain community and maintain community
community facilities. community facilities. systems with obligations systems with obligations
for household sales. for household sales.
Project features PV procurements Each contract is SSMP contracts bundle Market packages are
are examples of the about 45 kWp; system supply, installation, designed to maximize
supply and installation 1-year installation and maintenance in geographical densification
of PV systems in contract and 1-year community facilities in benefits. Each contract is
community facilities defects period, with a contiguous cluster of about 35 kWp and covers
spread throughout no maintenance villages with obligations several villages. Contracts
the country, including obligations. to meet minimum targets are for supply, installation,
hard-to-reach Maintenance is for commercial sales and maintenance in
communities, with no responsibility of each to households in the community facilities,
significant clustering; social-sector ministry same communities. with obligations to meet
no firm provision at provincial level. Performance-based annual targets for sales
for managing or Six PV packages subsidies and business to households and
financing component designed for various and credit support private entities in same
replacements types of facilities in provided for household communities. Private-sector
or longer-term the selected sectors. sales. Contracts sales include all sizes of SHS
maintenance and All systems are 100% aggregate enough and solar lanterns. Potential
unclear ownership grant-funded. business volume to for innovation by service
arrangements. support continued provider in user finance,
Anecdotal reports commercial sales and including rentals. Public-
indicate improved after-sales support for sector facilities 100% grant-
quality of systems and public and private PV funded. Small incentive ($/
installations. systems. Wp) for household or other
private sales.
Key challenges Sustainability is major Little harnessing Limited bidder interest; Limited range of 6
issue. Difficult bid of area-based procurement delays; packages may not provide
evaluations, weak economies of scale unexpected and the best fit for the wide
bidder qualifications, in operational phase; sudden grid extensions; range of facility types on
weak performance, no little coordination with security concerns; weak the ground.
standardization, low other PV projects private-sector capacity;
maintenance, weak from other donors in slow household sales;
institutional context, same villages. equipment (inverters),
and “organizational installation, and
silos.” maintenance quality
issues.
Source: Authors’ calculations, 2010.

Photovoltaics for Community Service Facilities | 19

Continuity of maintenance • Who will own the PV systems once installed?
• Who will be responsible for maintenance during the
A critical phase of implementation is continuity of project and post-project periods?
maintenance—the arrangements for owning, operating, • Will maintenance be done in-house or contracted out
maintaining, and funding systems after installation—which during the project and post-project periods?
must be carefully and completely defined for both the project • Who will fund the recurrent costs of operation during the
and post-project periods. At this rapid assessment stage, project and post-project periods?
broad choices should be explored: Is maintenance to be done
in-house or contracted out? If contracted out, might it initially
be part of a supply and install contract? How these issues will RESULT: PROJECT CONCEPT AND
be resolved are not decided in the rapid assessment phase, PREPARATION PLAN
but the pros and cons of possible options can be identified.
If this rapid assessment determines that PV is a viable option,
In clarifying implementation model options, the key then it results in a brief concept for a possible project and
questions are: the plan for its preparation. The project concept would be
discussed with stakeholders and independent specialists,
• Who will fund the investment? including off-grid renewable energy specialists, and adjusted
• Will implementation focus on a single sector or cover as appropriate. The plan for project preparation would take
facilities across multiple sectors within an area? into account an assessment of the available information and
• Will there be obligations for sales to households and activities to be undertaken during preparation to fill gaps and
linkages with market capabilities or other projects? generate additional and/or improved data.
• Who will be the lead organization for implementation of
supply and installations?

20 | Photovoltaics for Community Service Facilities

 Part 3. Preparation of the
PV Implementation Plan

Preparing the detailed PV implementation plan requires a over the entire process, along with independent reviews at
broad range of skills. Whether using in-house or contracted key points. The time required for plan preparation, estimated
experts, the services of highly qualified specialists, including at 1–3 months, depends mainly on the quality of existing
a PV expert for technical guidance, are vital. Project data and how much new information must be generated
managers must decide whether to hire a consultant to assist from the field on facility site characteristics and energy
with the entire process—from design and procurement requirements. This phase addresses many of the same
through supervision of installations and commissioning— questions as the rapid assessment, but at a deeper, more
contract a series of consultants, or use in-house expertise. detailed level (Box 5).
In many cases, it is good practice to use a single consultant

BOX 5: SUMMARY OF KEY STEPS IN PREPARING THE PV IMPLEMENTATION PLAN

1. Gather information and conduct field surveys. 4. Construct cost estimates and fine-tune least-
Collect data on numbers, locations, physical cost option. Build up investment and operating
layouts, and energy requirements for types and estimates with unit cost data for components,
levels of facilities. Assess institutional and market shipping, local taxes and handling, installation
capacity (Annex 3). Conduct wide stakeholder labor and logistics, maintenance, and component
consultations and field surveys at representative replacements. Run iterations comparing technical
facilities. Review sector priorities and policies and and organizational design options. Consider PV
grid extension plans. procurement cost trends. Customize least-cost
2. Update rapid assessment data on facilities and assessments and simulations with data on specific
prioritize services. Deepen and update information technologies and locations.
from the rapid assessment on numbers and types of 5. Decide on implementation model and
facilities. Rank energy requirements by the priority of institutional and technical details. Identify
the services they support, with rankings determined opportunities to cooperate with other projects
by sector policies and likely impacts. (If PV water and organizations. Conduct multiple consultations
pumping is included, conduct separate site-by-site with stakeholders on all aspects. Agree on
assessments guided by water specialists). responsibilities for supply and installation,
3. Refine energy requirements and size and maintenance, financing, ownership, and any links
configure PV systems. Calculate requirements with market development. Determine procurement
through several iterations comparing use and methods. Build up project budgets, schedules, and
configuration options, considering country draft procurement packages, including technical
experience and international best practice. Refine specifications and terms of reference for capacity
solar-resource estimates with disaggregated data, building, implementation support, and system
including regional and seasonal patterns. (National performance tracking (Annex 4). Consult with
meteorological office may have detailed data.) Size independent specialists, including off-grid renewable
and configure systems with engineering design energy specialists.
methods simulating component and installation
options with reliability/cost and other trade-offs.
Source: Authors’ observations, 2010.

Photovoltaics for Community Service Facilities | 21

GATHER INFORMATION AND CONDUCT of water required per day and the lift head at each site, as
FIELD SURVEYS well as data on borehole or well depth, static water level,
water rate and dynamic water level, and seasonal patterns.
A well-organized effort, with active participation of the Data may be available from the water department.
organizations that own the targeted facilities, aided by mobile Information is also required on the water jurisdiction
phones and Internet technology, can fairly quickly result in and existing borehole and pump condition, ownership,
a comprehensive compilation of basic information on the and responsibility. Assumptions on water demand and
facilities. At this stage, field surveys of representative facilities minimum days of storage, depending on the nature of the
and communities, including those that already have PV demand and uses at the facility, will need to be clarified.
systems, should be conducted to confirm data and identify Ultimately, each site will require detailed drawings.
any unusual patterns or issues. Participatory rapid rural
appraisal methods, including focus groups and selective Institutions and markets
interviews that draw on the experiences and expertise of
facility staff members and communities, can be effective in Assessments of institutional and market capacities,
collecting data that fairly reflects on-the-ground realities. opportunities, and constraints are fundamental and should
precede determining the details of how the supply, installation,
Data on facilities and their energy requirements and later operation of the systems will be managed. These
assessments will contribute to (i) realistic decisions about
Information to be collected on the facilities includes: the viability of PV systems as a supply option and (ii) design
of practicable implementation arrangements. They should
• Number of facilities, categorized by sector type (e.g., be undertaken at a level of detail proportionate to the case.
rural hospitals, health centers, or health dispensaries). Preparing to implement PV systems for significant numbers of
• Location of facilities, categorized by their proximity facilities warrants thorough assessments (Annex 3).
to existing and planned grid; if GIS spatial information is
unavailable, spreadsheet lists are a workable solution for The suggested assessments are:
small numbers of sites.
• Typical building and site layouts for each type of • Market capacities and barriers—size and performance
facility, which can be quickly surveyed by selective visits of local PV market, including prices, quantities, and
to representative sites; ministries may have databases quality; local capacities to support PV, including number
including architectural or schematic drawings of and track records of local and international companies
buildings and equipment/appliance lists for the facilities. operating in the local PV market, organizations, and
• Organizational, sector, and other policies and specialists; PV-related capacities in communities near
rules for equipping facilities (e.g., classifications of the targeted facilities; and market development
schools and health facilities), which may specify the activities and projects planned or already under way.
number and types of equipment and lighting to be • Grid extension plans and costs and tariffs.
provided, depending on the facility classification; if • Diesel prices and supply reliability in communities
not, a participatory, collaborative process should be located near facilities.
undertaken to agree on the standard rules to be used. • Country PV experience—local experiences (including
• Energy use and expenditure of staff at facilities with those of targeted communities); implementation models
and without electricity (including those that already have used; results; sustainability track records of facilities in
PV systems determined via surveys with questions on government, for-profit, and non-profits sectors.
hours of appliance and equipment use and substitute • Institutional implementation capacity (design,
products (e.g., kerosene lanterns and radios with dry-cell procurement, supervision, training, ownership, operation,
batteries). Although not included in the services to be and maintenance), including those of:
provided by solar PV, energy for thermal purposes (e.g., - lead organization in project preparation and initial
cooking, sterilization, water and space heating, ironing, implementation;
and hair-drying) should also be included in the survey. - likely facility owner(s) (may differ from lead
• Local community and facility staff information on implementing organization during procurement); and
lightning strikes in the area, theft and vandalism risks - other national and local institutions (e.g., central
and possible counter measures, and other factors that government ministries, local governments, technical
may impact the systems to be installed in the facilities; institutions, NGOs, private firms, and individuals) that
if the community and/or facility staff may be expected are potential project participants.
to contribute to maintenance costs, they should be • Cooperation opportunities with other projects:
carefully consulted during the field surveys. - PV market development projects and possible
• Site-specific water supply information if water links with activities to sell and provide credit for PV
pumping is to be a project-supported application, water systems for households in the same communities;
specialists will need information for each site on the volume - other PV-related capacity-building projects or

22 | Photovoltaics for Community Service Facilities

 activities planned or under way; and Oftentimes, demand (“load”) assessments simply list
- potential arrangements for inter-agency desired uses or applications and their corresponding energy
coordination and cooperation and collaboration requirements. But good practice is to rank these by the priority
with other projects. of the services they support, with the rankings determined by
• Framework issues and barriers: sector policies and likely impacts, taking international experience
- regulations, standards, and enforcement; and into account (Table 8). It may not be cost-effective to supply
- duties and taxes and customs practices. certain services with PV systems. For example, it may become
• Maintenance capabilities—a specific assessment of evident that general purpose refrigeration and even vaccine
maintenance experiences and capabilities, especially for refrigeration might be better served by LPG or kerosene. And
long-term arrangements. cooking, sterilization, and water heating are usually best served
by traditional fuels. Prioritization decisions can be reviewed later
as part of the process of bringing the overall project scope in
UPDATE RAPID ASSESSMENT DATA ON line with budget realities.
FACILITIES AND PRIORITIZE SERVICES

Information from the rapid assessment on the number and REFINE ENERGY REQUIREMENTS AND
types of facilities will need to be deepened and most likely SIZE AND CONFIGURE PV SYSTEMS
updated, as project area and sites may have changed since
the provisional data was gathered. Also, by this stage, more With the additional information now available from more
accurate information will have been generated via the data extensive data collection on the facilities and the field surveys, a
collection and field surveys. PV specialist can refine the initial energy demand estimates.

TABLE 8: EXAMPLE OF PRIORITY RANKING OF HEALTH AND ENERGY SERVICES, BY FACILITY LOCATION
Purpose/location Service Priority ranking (example)
Cold chain and Expanded Program Vaccine refrigeration High
on Immunization (EPI) refrigeration
External lighting Security lights at all main doors High
Security lights around buildings, front gate Low
streetlight, outside toilet block lighting
Veranda lights Medium
Outpatient department (OPD) Laboratory lights and appliances (list) High
lighting and appliances OPD lights and medical appliances (TV, list others) Medium
Maternity and Mother Child Health Maternity and MCH lights High
(MCH) lighting and appliances Medical appliances (suction, ceiling fan, list others) High
Office lighting, appliances, and Cell phone charger, TV High
communications Office appliances (computer, printer), office lights, Medium
and ceiling fan
Operating theatre (OT) lighting and OT lights Not applicable for this typical site
appliances OT appliances (list them) Not applicable for this typical site
Ward and patient kitchen lighting Ward lights Medium
and appliances Ward appliances (list them) Low
Kitchen lights Low
Staff housing lighting and Staff lighting Medium/high
appliances Appliances (TV, radio, ceiling fans, and cell phone Medium/high
charger)
General purpose Water pumping Medium
Refrigerators Medium
Cooking for institution Medium
Sterilization High
Source: Authors’ calculations, 2010.

Photovoltaics for Community Service Facilities | 23

ENERGY DEMAND REFINEMENTS system should not experience load growth (though other items
have been known to be stocked), while a computer system
Verify priority services. The data gathered during the may increase energy use dramatically. It is prudent to allow
surveys of typical electrified, non-electrified, and PV- for reasonable load growth of 10–20 percent for lighting and
electrified facilities should be reviewed to confirm the ranking appliances in a health center or school, while also assuming
of services. Good judgment is necessary to weigh the cost reasonable management and strong enforcement of rules.
of using PV to provide the service against the importance of
the service to a facility’s mission. For example, it may have Clarify and adjust the reliability of supply standards. The
become evident that, although PV vaccine refrigerators are cost of a PV system is sensitive to the design requirements for
costly, they are critical to the clinic program, while ceiling fans supply reliability, and reducing reliability levels of some services
are not and thus can be omitted, except in maternity wards can save costs. Good design practice is to size the PV panels
and office buildings. and batteries to meet requirements during the month of lowest
solar radiation while differentiating the necessary reliability
Apply a service-levels approach. For consistent calculations, levels of the services. For example, the reliability of a vaccine
guidelines should be established for the number of hours of refrigerator system is more critical than that of lights in a staff
lighting or service required per day and days per week and house; the battery for a vaccine refrigerator is typically sized to
the required number of lights for each room type. Broad operate through five days when the sun is not shining, while
assumptions should be reviewed; for example, an approach batteries for lights and other services are often designed for
of one light per room can result in unimportant, smaller rooms three days of continuous cloudiness.
being too well lit, while more important, larger rooms are
underserved. For good lighting distribution and adequate Impacts of demand refinements
illumination, multiple lights should be considered in larger rooms.
Each light (or multiple lights in one room) should be separately The refinements can contribute to substantial cost reductions
switched with the assumption that lights are switched off when and increased sustainability while meeting energy demand
rooms are not used and that ambient lighting is reduced when requirements at agreed levels of service reliability. For example,
dedicated task lighting is provided. For instance, using reading during the rapid assessment stage, the demand estimate for
lamps or medical spot lamps reduces the need for high general an OPD building in a rural health center might initially provide
lighting levels, and some ceiling lamps can be switched off. This for one light per room for four hours per day, one external light
design approach applies to appliances as well. for 10 hours each night, and a computer and cooling fans for
a few hours a day, resulting in a first-estimate energy demand
Consider daily and seasonal demand variations. Facility of 3,810 Wh per day. In the detailed design stage, demand
load requirements, particularly for schools, may vary by day refinement steps include: (i) more efficient types of lamps; (ii)
of the week and over the school year. Optimizing the system accurate calculation of light output including reduced lighting
design will take these factors into account. levels in non-critical areas; (iii) reduced hours of use for some
services; and (iv) painting the ceiling to increase utilization
Use efficient lighting and appliances. Energy demand can and reflectivity and thereby reduce lamp wattage. The total
be reduced by more than half by careful selection of efficient load estimate can be reduced to 1,460 Wh per day without
lights, good practice lighting design and layout, and use of sacrificing quality of service, but effectively reducing the
efficient appliances (e.g., low-power computers and TVs), system investment cost by half (Annex 1).
without affecting user satisfaction and outcomes. For example,
replacing high-intensity background lights (usually CFLs) with System investment and operating costs are also sensitive
low-intensity lights supported by a dedicated task light (possibly to the reliability factors used in the design. Distinguishing
a more efficient LED light) and using reflectors for lights in rooms between those services and energy requirements that
without ceilings (or painting the ceiling white), will save energy are mission critical and those more tolerant to supply
and improve lighting quality and effectiveness. As lighting interruptions (e.g., during extended periods of heavy
technology has developed and become more cost-competitive, cloudiness) allows the PV design specialist to apply various
long-life LEDs and lights with automatic motion detectors have design factors. Using reliability design factors appropriate
become increasingly available. An efficient lighting plan for each to each case reduces investment and O&M costs. For
type of facility should be developed (Annex 2). any system, the periodic costs of battery replacement are
particularly sensitive to reliability design factors.
Allow for reasonable load growth; assume reasonable
management. Load growth may or may not be desirable. Resource assessments: Solar radiation data
For example, having lights on during evening hours allows
clinics to remain opening longer and improve services that A decision that will have a significant impact on system costs
require more light hours; on the other hand, load growth may is the level of solar radiation to be used as the design factor
mean excessive TV viewing or cell-phone charging, possibly in sizing systems. Data on solar resources in the regions
as a source of private income for staff. A vaccine refrigerator where the facilities are located will indicate the PSH for the

24 | Photovoltaics for Community Service Facilities

worst solar month. However, while solar radiation may vary may assist with further reducing system size by using loss
within a country and over the year, in many cases the PV of power probability analysis on long-term statistical solar
design specialist can minimize seasonal and regional effects radiation data (e.g., 20 years of data on an hourly analysis for
by providing for the optimal tilting of the array of solar panels. the specific sites under consideration). However, confidence
Where optimal tilting is not sufficiently effective, good practice in the design method and data quality is paramount. The PV
is to use various PSH factors for each region. Although this will technical specialist should state the method and data used.
result in systems of various sizes for the same type of facility in
different regions, it will save on overall costs and reduce both “Technical” issues and trade-offs
system undersizing—a main contributor to low sustainability—
and oversizing, which unnecessarily increases investment and Many design decisions are not strictly technical, as they have
operational costs (Annex 1). differential impacts on investment and recurrent costs and
sustainability. The handling of these types of issues should
The many variations of PV sizing methods are often used be clearly described, and the options and trade-offs should
in simulating options; they generally yield similar results if be discussed transparently (Table 9).
similar inputs are applied. Using PV simulation programs

TABLE 9: SYSTEM DESIGN ISSUES AND GUIDANCE

Issue Guidance
PV panel and battery sizing. An option sometimes considered This can be risky as not fully charging batteries and
cost effective is to slightly increase the PV array size, possibly to allowing greater depth of discharge are both associated
compensate for reducing battery size, particularly as the prices of with reduced durability. Using batteries in a cycling
PV panels continue to decline. While slightly oversized panels might regime outside their optimal regime can sharply reduce
address a concern about not fully charging batteries, using slightly battery life and raise operational costs.
smaller batteries would lead to allowing a greater depth of discharge.
PV panel sizing for seasonal solar radiation. In regions with Consider seasonality of demand; for example, schools
pronounced, extended rainy seasons, it may be possible to may be out of session during the worst months;
adjust load requirevments to avoid increasing size of PV panels. consider reducing wet-season loads; consider
combining loads into centralized hybrid systems with a
backup generator for no- or low-sun periods.
Battery choice. The choices are typically locally available, less Interesting options include: (i) installing quality, 8-year
expensive batteries versus higher-cost but longer-life, imported deep-cycle batteries and then replacing those in systems
deep-cycle batteries. Life-cycle cost analysis points toward quality, that are still operational; or (ii) installing lower-quality
genuine deep-cycle batteries as the first choice if the long-cycle batteries initially and then upgrading with better ones later
life can be realized. However, there are compelling practical in successful PV systems, while ensuring that the charge
arguments for other considerations, including risks associated controller is suitable for multiple battery types (see www.
with substantially higher capital investments, costs of initial and iea-pvps.org/products/download/rep3_06.pdf).
replacement batteries, availability of replacement batteries, battery
servicing requirements and capabilities, logistical issues for heavy
batteries, quality assurance, and battery disposal.
Engineering design margins. A good practice—though not Omitting engineering margins in the urgent rush to
always followed as it increases costs—is to include margins design minimally-sized and lowest-cost PV systems will
for temperature effects, component degradation over time, compromise system reliability and ultimately increase
and other causes of losses in the performance and lifetime of life-cycle costs.
components and systems.
Lightning protection. Comprehensive lightning protection is Lightning protection is necessary for essential systems
often recommended for all systems in lightning-prone areas. and those 300 Wp and larger. Lightning risk should be
assessed based on statistical lightning strike data or
local information.
Technical standards. Good practice is to require that PV There should be little, if any, compromise on standards
system components meet international standards and to send for the main components. It would be a mistake to
clear requirements for documentation of compliance. But there bend to local commercial interests or industry policy
may be local commercial interests or policy objectives in favor of objectives. Procedures for accepting certifications of
using local standards. Also, local capacities for enforcement of equipment conforming to specifications and any local
equipment standards and testing may not be adequate. testing should be practicable and based on independent
assessment of local capabilities.

Photovoltaics for Community Service Facilities | 25

 TABLE 9: SYSTEM DESIGN ISSUES AND GUIDANCE (CONTINUED)
Issue Guidance
AC system, DC system, or both. DC systems are 10–15 AC systems allow greater flexibility in choice of appliance
percent more efficient and cost less than AC ones. But they are and can be easier to install. Combined AC/DC systems
limited to small, stand-alone PV systems for small buildings, and may be optimal in some cases. Centralized PV systems for
availability of DC appliances may be limited. multiple buildings must have a higher voltage (110 or 220-V)
AC to avoid losses and keep system sizes relatively small.
Whether to include supply of appliances. Where efficient Consider separate supply contracts for any appliances.
appliances are not readily available, especially DC ones, they may PV equipment suppliers rarely have capabilities to
be included as part of the PV supply contract. support appliances after installation.
Whether to include PV systems for staff housing. Some If systems are to be installed in staff housing, then prior
organizations provide PV systems for staff housing, while others to installation, settle issues of ownership, contributions to
do not, although the latter may support subsidies or credit to capital and/or operational costs, and responsibilities for
facilitate staff purchases of systems. In some cases, providing repairs and replacement of lights and components. For
PV systems for staff residences will be considered essential for example, staff can reduce their spending on kerosene
staff recruitment and retention in remote communities. and dry-cell batteries. Design decisions will include
whether to provide AC or DC systems. Practices vary
by country and program; for example, the Uganda ERT
project provides health staff 100-Wp AC systems, while a
similar project in Ethiopia provides 40-Wp DC systems.
Source: Authors’ calculations, 2010.

CONSTRUCT COST ESTIMATES AND FINE- DECIDE ON IMPLEMENTATION MODEL AND

TUNE LEAST-COST OPTION INSTITUTIONAL AND TECHNICAL DETAILS

A simple spreadsheet model can be used to readily and The information collected during the institutional and market
easily understand the investment and operational costs assessments, including past experiences with PV for
of the various technical and organizational options being community facilities, should be carefully reviewed before settling
considered as the design moves through multiple iterations. on an implementation model. Regardless of the capacities,
weaknesses, or opportunities that the data may suggest, the
With data from the market assessments and reviews of reality is that the choice of implementation model for providing
recent procurements, the full cost-to-serve estimates for the PV systems for community facilities is largely determined by the
systems can be constructed using up-to-date unit costs for policies and procedures of the lead implementing organization
components, shipping, local taxes and handling, installation, (e.g., health ministry, energy ministry, social investment fund,
and logistics, maintenance, and component replacements local government, or rural electrification agency) and the funder,
(Table 10). The supply estimates should take into account although these may be negotiated if multiple organizations are
local prices, as well as international trends, particularly the participating. Within social-sector programs, the provision of
declining supply cost curve for PV panels. PV systems is typically an activity or component within a larger
project (e.g., lowering maternal mortality, raising primary-school
In estimating the costs in anticipation of entering into a enrollment, or responding to community-driven infrastructure
contract with a supplier, a provision should be included for a requests). In such cases, the basic pattern of responsibilities
minimum supply of spare parts. The annual costs of system and inter-organizational relations is rarely driven by the activity
maintenance, including the periodic replacement of batteries, for the supply of PV systems.
should also be thought through thoroughly.
That said, the implementation model options introduced
The least cost curves used in the rapid assessment can now during the rapid assessment should now be carefully
be fine-tuned if necessary and confirmed with the additional considered (Table 7), taking into account the market,
information gathered on diesel pricing in rural areas, grid developing opportunities (e.g., Clean Development
extension costs and electricity tariffs, and the solar resource. Mechanism financing [Box 6]), and institutional information
These analyses can be easily done by a PV specialist using and understanding that have been developed.
engineering design software or the web-based software
of RETScreen (www.retscreen.net/) and HOMER (www.
homerenergy.com). If not used in initial preparation, these
programs are useful as a due-diligence cross-check of both
technical design and costs.

26 | Photovoltaics for Community Service Facilities

TABLE 10: ILLUSTRATIVE EXAMPLE OF COST ESTIMATES, 250 WP SYSTEM
PV System Investment Lifetime Costs (present value)
Component Life Unit cost Capacity Cost (US$) Share (%) Total cost (US$) Share (%)
Panel Wp 25 5 250 1,250 34.9 1,250 17.7
Battery (12V) Ah 7 2.8 309 866 24.2 2,096 29.7
Inverter 8 200 each 200 5.6 404 5.7
Controller 8 175 each 175 4.9 354 5.0
Lightning protector 7 220 each 220 6.1 441 6.3
Subtotal 2,711 4,546
Other equipment 25 10% 271 7.6 271 3.8
Equipment cost 2,983 4,817
Shipping 5% 149 149
Install, local transport 25 10% each 298 8.3 298 4.2
Other startup 25 5% each 149 4.2 149 2.1
PV system cost 3,579 5,413
O&M (per year) 4% (as % system cost) 1,642 23.3
Total cost 3,579 7,055
Discount rate 6% Investment $/Wp 14
Years 20 LCOE, $/kWh 2.14
Maximum discharge 70% Investment as % total LCOE 51%
Days of autonomy 3 Annualized total cost PMT 615
PSH 5 Annualized O&M plus replacements cost PMT 303
Source: Authors’ calculations, 2010.

BOX 6: CLEAN DEVELOPMENT MECHANISM

Established under the Kyoto Protocol, the Clean The difficulties of attaining CDM financing for off-grid
Development Mechanism (CDM) allows one certified solar PV are many, mostly linked to the small amounts of
emission reduction (CER) credit to be earned for CO2 avoided at each location and the sheer complexity
each equivalent ton of carbon dioxide (CO2) reduced. of the scheme. Arranging CDM financing, which in
The CERs are marketable. Projects qualify through a any event would not be available until several years
rigorous process of verifying emissions reductions that after system installation, is a specialized activity. Any
are additional to what would otherwise have occurred organization preparing a program of activities under the
without the project. There has been interest in leveraging recently available programmatic CDM methods might
CDM financing for off-grid solar PV projects, mainly for be interested in including a project for PV systems for
solar home systems (SHS) and lanterns that avoid CO2 community facilities. These opportunities are expected to
emissions, mainly from kerosene lanterns; a project in become more frequent as experience is gained, although
Bangladesh is the most advanced in pioneering the the small CO2 size of off-grid PV projects would limit the
process of securing financing. interest of any CDM credit purchaser.

Source: Authors’ observations, 2010.

Photovoltaics for Community Service Facilities | 27

Choice: sector or area-based implementation? already underway or new ones that would be supported
by the same or a separate project. Depending on the local
A key choice is whether to base implementation on sectors context, an approach that linked the supply and installation
or areas. This issue will have been raised during the rapid of PV systems in community facilities to developing the PV
assessment, but it should be revisited at this stage, taking market in the same communities may offer opportunities
into account the more detailed institutional and market for strengthening after-sales services that would reinforce
assessments conducted. For many sector ministries (e.g., the longer-term sustainability of the systems in community
health, education, or water), the sector-based approach is facilities as well as in households. There may also be
an instinctive choice. But other approaches might enhance opportunities to use market methods to indirectly improve
the possibilities for system sustainability. An area-based facility services. For example, schools could offer rental
approach combining PV systems for multiple facilities across lighting programs to provide low-cost, portable lights with
sectors (e.g., schools, clinics, community centers, and public high-efficiency LED lights that students could use at home
lighting) in defined communities offers, in principle, logistics for evening study (as will be done in the Tanzania SSMP).
and cost advantages, particularly during installation and later Or a credit-based mechanism could be used to provide
operation, maintenance, and supervision. This approach is a PV systems for staff housing, with the staff eventually
natural fit for a rural electrification agency, ministry of energy, becoming the system owners, with responsibility for system
or other organization with a rural electrification mission maintenance and security.
and the capacity to successfully handle the coordination
complexities of dealing with multiple organizations having Choice: contract maintenance or do it in-house?
varying schedules, budgets, and perspectives.
Uninterrupted, long-term maintenance is the vital requirement
Choice: link with market development? for system sustainability.

A strictly supply and install, and possibly maintenance, The basic maintenance options are: i) contracted maintenance,
contract based approach, whether for facilities in a single as is often done by private entities for remote facilities;
sector or area-based, is often preferred by government or ii) in-house arrangements, possibly with community
organizations. Standard bidding documents and procedures participation. The optimal approach and the determination
are available, and the process is well-established. However, of who is best able to do the maintenance will be location
social-sector ministries or similar organizations often will specific, depending as much on the policies and practices
not have adequate PV-specific capacities. Also, most of the lead organization and future owners of the systems as
energy-sector organizations, such as energy ministries on the capabilities of the various actors and the requirements
or rural electrification agencies, do PV procurements only of sustained maintenance. The matter should be addressed
infrequently, so that their procurement and other officials openly in the context of assessments of organizational track
seldom have significant experience with the issues specific records and broader capacities and constraints related to both
to PV procurement. One result is that that, even when using in-house and contracted maintenance.
standard bidding documents, the procurement process can
be lengthy or otherwise problematic. More importantly for The choice of maintenance approach is likely the single most
longer-term sustainability, this approach has frequently had important decision during project development. The factors
the disadvantages associated with organizational silos, with to consider in making this decision and the details of the
the agency implementing the procurement not benefiting maintenance requirements are discussed in depth in Part 5.
from the advances and capacities of other organizations and
projects within the same sphere. The PV implementation plan is not complete until
maintenance plans have been prepared for both the project
Bundling market development activities and targets in a and post-project periods. These plans should have the solid
supply and install contract may at first appear as a more concurrence of the stakeholders that will be responsible for
complicated way to provide PV systems for community funding and managing post-project maintenance, including
facilities. But it might also be more viable, depending component replacements (Part 5).
on the current strengths of the private sector and the
state of market development and, on the other hand, the RESULT: PV IMPLEMENTATION PLAN
effectiveness of any market-development activities and
the strengths of the government agencies and private The result of the preparation phase is the PV implementation
organizations managing them, whether these activities are plan (Box 7).

28 | Photovoltaics for Community Service Facilities

 BOX 7: INDICATIVE TEMPLATE FOR PV IMPLEMENTATION PLAN

Introduction, objectives - Information and promotion activities.

• Main aims and goals. - Procurement and tender evaluation.
• Sector or cross-sector program linkages. - Equipment: certifications, tests, and
• Key success indicators. verifications of conformance.
- Post-award updating, due diligence on
Project description facilities, sites, and requirements.
• Types, numbers, locations of facilities, and - Installations: verifications and inspections.
services. • Development of post-installation maintenance and
• Energy requirements and solar resources. management.
• Description of PV systems (detailed sizing, • Liaison and workshops (presentation of PV
standards, and designs in annexes). packages, information to staff, communities, and
• If part of a market development project, market awareness raising and consultations with staff and
targets and project mechanisms. communities).
• Capacity building plan, technical assistance for
Implementation arrangements for project and post- capacity building, and terms of reference included
project periods as annexes.
• Implementation model description for project and • Implementation/supervision support and
post-project operation. evaluation; terms of reference included as annexes.
• Organizational responsibilities: lead and
coordination; procurement; rollout of equipment Budgets and financing
supply, installations, and acceptances; capacity • All implementation costs and financing: supply,
building; post-installation. installation, maintenance and recurrent costs,
• Linkages with other organizations and projects. including component replacements (with confirmed
• Maintenance plans for project and post-project commitments to meet these costs included as
periods: ownership, financing, maintenance annexes) with breakdowns by region, lots, and entity.
practices and responsibilities, component • Capacity building and technical assistance.
replacements, tracking of system maintenance and • Subsidies from other organizations or projects, or
performance. from CDM, if applicable.
• Reporting and monitoring and evaluation. • Disbursements and provisional cash flow.

Project activities and procurement plan Schedule

• Supply and installation of systems: • Provisional project schedule.
- Preparation of procurement packages.

Source: Authors’ calculations, 2010.

Photovoltaics for Community Service Facilities | 29

30 | Photovoltaics for Community Service Facilities
 Part 4. Procurements and
Contract Management

The procurement and implementation project phase requires VIABLE STRATEGY FOR OFF-GRID
a viable strategy for off-grid PV procurement and PV contracts PV PROCUREMENT
and having certain conditions in place for contract management
and rollout and longer-term supervision. This section covers the Many off-grid PV projects flounder at the procurement stage.
range of elements needed in each of these several areas that Or delays and blunders during the procurement process
are vital to project effectiveness and overall success. set the stage for subsequent low system sustainability.
Table 11 highlights the PV procurement problems frequently
encountered and actions to avoid them.

TABLE 11: HOW TO AVOID COMMON PV PROCUREMENT PROBLEMS

Problem Guidance
Too few qualified bidders and high prices, associated with: Publicize the proposed specifications early and often
• Limited, late promotion; information not widely distributed. beyond traditional sites via the UNDB and local
• Small size of contracts: No certainty on future flow of newspapers; network and promote widely.
contracts reduces interest of potential bidders, particularly Strategically phase and time procurements.
large foreign suppliers, most of which have limited interest in
off-grid market. Make reasonable lot sizes.
• Perceived high risk of non-eligibility of PV system equipment, Use qualified, independent PV professionals for
limited capacities to prepare bids and other barriers versus technical design and supervision.
costs of bid preparation deters bidders, particularly local
Conduct pre-procurement capacity building to
bidders.
strengthen pool of potential bidders, consulting closely
• Bidders lack knowledge of remote project communities.
with procurement specialist to ensure that activity is
• Concerns about delays and possible costs for processing
handled appropriately.
approvals may deter bidders or lead to high prices.
Poor-quality equipment and installations, associated with: Specify international standards.
• Not using international standards; unclear process for Use detailed specifications for equipment and installations.
determining acceptability of alternative standards proposed
by the bidder. Use modular/standardized system packages.
• Unclear or inconsistent specifications. Set stringent requirements for documenting that
• Difficulties confirming that equipment and installations meet equipment conforms to specifications.
technical requirements; lack of accredited local facilities to test
Allow multiple opportunities to establish equipment
components; expensive and time-consuming pre-shipment
eligibility.
testing by contracted laboratory; difficulties in determining which
laboratories are accredited to perform required certification. Establish clear process for accepting certifications and
• Unclear process for acceptance of certifications and installations with standard commissioning checklist
installations. and forms.
Poor performance by winning firm, associated with: Facilitate post-award contract modifications based on
• Changed on-the-ground conditions. changed conditions.
• Unforeseen logistical issues. Require that contractor-assurance procedures be
• Poor, rushed installations, often subcontracted on a unit agreed to by implementing agency.
basis.
• Rushed capacity building and training. Provide strong supervision with professional technical
• Lack of quality assurance by contractor support for installations and maintenance.
• Late, inadequate supervision of installations and Secure funding for maintenance; hand over systems to
maintenance in remote locations by implementing agency. intended owners.
Source: Authors’ calculations, 2010.

Photovoltaics for Community Service Facilities | 31

Choice of procurement method and process Promotion and publicity

There are several types of Standard Bidding Documents Timely publicity increases awareness and provides an
(SBD) from which to choose. For most off-grid PV systems opportunity for smaller, usually local PV firms that may not be
for community facilities, the SBD for Procurement individually qualified to form joint ventures. Promotion should
of Goods is appropriate. The SBD for Procurement begin well before and extend beyond publication of mandatory
of Plant could also be considered, as the major cost procurement notices in the UNDB online, Development
element is equipment handed over and accepted only after Gateway’s dgMarket, and official gazettes. Publicity teasers
commissioning. However, the SBD for Plant is intended for can be posted on official websites and widely circulated as
larger, more complex technology projects with significant done under the Bolivia Decentralized Energy, Information,
design tasks. For smaller contracts, the Procurement of and Communications Technology for Rural Transformation
Works may be suitable. The experience of tender officials Project and the Philippines Rural Power Project (Annex
and PV suppliers with the SBD for Procurement of Goods 5). Targeted promotion of off-grid PV contracts covering
may be an advantage (Table 12). local, regional, and international renewable and solar energy
networks can also widen the circle of potential bidders. There
International Competitive Bidding (ICB) is used, given is no restriction on the advance circulation of draft technical
the wide potential interest and supply capabilities of PV specifications and promotional information on the project
contracts in multiple countries and that, in most cases, concept, areas, and timetable.
PV panels and other major components will be imported.
Most likely, there is no bidder prequalification. The SBD for Phasing and scheduling
Procurement of Goods, unlike those for plant and works,
is not intended for bidder prequalification, although pre- For large projects, phasing procurements, say every 3–6
qualification was used for the Tanzania SSMP procurement months, will accommodate the capacities of smaller, often
in 2009–10. Without prequalification, some potential local firms. In many cases, phasing will also permit a
credible bidders could be deterred by the high costs of good fit with the capacities of the implementing agency to
preparing bids (particularly for installations and related manage the tender and supervise implementation in multiple
services in remote off-grid communities), especially if they remote locations. Phasing also gives project managers the
are concerned that firms lacking sound capability would opportunity to steadily modify and improve procurement
underbid to win the contract. This possibility increases the details and align them with cumulative implementation
need to generate bidder interest with sufficient advance experience and lessons learned. Procurements should be
publicity and information and reduce any perception of risk timed with an eye to the weather, local holiday seasons, and
by establishing clear criteria for post-qualification. business practices. In many countries, it is advisable to avoid
scheduling field visits for bidders conferences during intense
For innovative projects, such as the initial SSMP in a country, rainy seasons or tender openings in early December or
it will be important to provide adequate time (at least three closings in early January (Table 13).
months) for the Clarification Process and Pre-bid
Conference. A bidders conference, conducted in the field Bidder criteria
in a representative community, can be an effective way to
provide vital information about sites, distances and logistics, To implement PV contracts for community facilities, bidders
and organizational and environmental conditions. must meet specific criteria, which should work as an
effective filter for deciding on their qualifications (Table 14).

TABLE 12: CHOICE OF STANDARD BIDDING DOCUMENTS

SBD type Revision date Appropriate use
Procurement of Goods May 2004, May 2005, Supply and installation of PV components and systems; not
September 2006, May 2007, immediately suitable for maintenance contracts. Could be
and May 2010 modified.
Procurement of Plant: April 2008 Industrial plant with a significant design component; supply
design, supply, and and installation of PV systems. Could be modified to include
installation maintenance. In 2008, a version was prepared for Zambia
MOF PV procurement.
Procurement of Works: May 2008 Could be modified for use in extended maintenance contracts
smaller contracts using national competitive bidding (e.g., Uganda, 2006).
Source: Index of Standard Bidding and Proposal Documents, World Bank, November 2010.
http://go.worldbank.org/HNBJA3S38

32 | Photovoltaics for Community Service Facilities

 TABLE 13: TIMELINE FOR SYSTEM AND INSTALLATION PROCUREMENT ANTICIPATING SEASONAL CHANGES
Task Period Assumption Completion Completion Season
(months Date
from start)
Procurement packages Oct. 1, 2009
completed
No-objection to 3 weeks from submission best assumption 0.8 Oct. 23, 2009
procurement packages
Tender advertisements 1 week from no-objection 1.0 Oct. 31, 2009
Tender issue 1 week from tender 1.3 Nov. 7, 2009 Wet
advertisement
Tender period/closing 10 weeks from tender issue minimum period 3.8 Jan. 21, 2010 Wet
Tender evaluation report 3 weeks from tender closing reasonable assumption 4.5 Feb. 13, 2010 Wet
No-objection to tender 3 weeks from submission of best assumption 5.3 March 7, 2010 Wet
evaluation report evaluation report
Contract signature 2 weeks from no-objection best assumption 5.8 March 22, 2010 Wet
Arrival of blueprint 3 months from contract as per contract 8.8 June 20, 2010 Dry
equipment signature
Installation of blueprint 1 month from arrival of as per contract 9.8 July 20, 2010 Dry
equipment blueprint equipment
Arrival of balance of 6 months from contract no equipment problems 11.8 Sept. 18, 2010 Dry
equipment signature at blueprint stage
Installation 4.2 months after arrival of * 15.9 Jan. 21, 2011 Wet
balance of equipment
Commissioning 2 months running concurrently and 16.9 Feb. 20, 2011 Wet
ending after installation
Source: Authors’ observations, 2010.

* Installation assumptions: 100 sites, 2 contractors, 3 teams per contractor, and 4 sites per month per team (based on prior history).

Concise and unambiguous criteria and forms should be less than the two previous years of no less than two times
included in the bid document package to reduce the risk that a the annual expected disbursements under the contract).
bidder submits, wins, and is subsequently found not qualified. Depending on the case, flexibility may be needed in defining
Of course, due diligence is done on the data and references ways to demonstrate the necessary financial capacity, taking
provided by the winning bidder prior to contract award. into account the potential pool of bidders, contract size, and
implementation context.
The bidder and key personnel should be required to list
successful project experience in recent supply and installation The implementation plan will include personnel (including CVs
(and perhaps maintenance) of PV systems in off-grid rural and qualifications), schedule of vehicles, tools and equipment
facilities in similar countries (e.g., the firm has supplied and used for installations [and whether these must be procured],
installed a minimum of 200 PV systems in at least 100 subcontractors and their qualifications, timetables for
community facilities under a minimum of three contracts within inception report, delivery and installation in the communities,
the last three years). Vaguely worded experience requirements, capacity building, maintenance and other services). Taken
or ones referring to more general experience in supplying together, these should form a whole that is practicable
electrical goods, electrification, or even rural electrification and capable of meeting the contract requirements on
are inadequate. There should be no hesitation in insisting on schedule. Bidder qualification is always conducted on a
experience that is relevant, current, and successful. pass/fail basis; however, it is prudent to be demanding when
deciding on whether a plan is acceptable. Many contracts
The bidder should have sufficient financial capacity to handle for PV for off-grid communities run into problems that could
project cash flow per lot. One aim is to avoid a supplier easily be avoided by closely reviewing and adjusting the
being unable to complete the contract because of financing implementation plan or selecting another bidder. During the
constraints. Minimum requirements would demonstrate examination, evaluation, and post-qualification of bids, it is
adequate cash flow (e.g., cash on hand and revolving credits possible to seek clarification from the bidder on the plan,
or bank guarantees equivalent to at least four months of although no changes in the price or substance are permitted.
operations) and soundness (e.g., having annual turnover not

Photovoltaics for Community Service Facilities | 33

 TABLE 14: CHECKLIST FOR BID EVALUATION
Item Approach/Criteria
Preliminary evaluation Usually conducted on a strictly pass/fail basis.
• Tender documents complete, supporting
documents and brochures.
• Statement of compliance provided, bid
validity periods, bid bonds provided.
Price checks Price adjustments made strictly according to SBD guidelines and
• Price correction and unconditional evaluation criteria.
discounts (price).
• Currency conversions (price).
• Additions adjustments and price
deviations (price).
• Domestic preference (price), if any.
• See also evaluation criteria for other price
adjustments allowed.
Post qualification Pass/fail, however, some aspects require judgment, and certain changes
can be requested without price adjustment.
• Compliance of bidders with financial • Pass/fail, with adjustments to suitability to be awarded multiple lots
pre/post qualification requirements and should conditions warrant.
experience. • Pass/fail, however, evaluation criteria may allow alternative schedules,
• Compliance with project time schedules. making this negotiable.
• Technical compliance with sizing and • Whether each major equipment item is provided and meets required
completeness of equipment (provide sizes is conducted on a pass/fail basis; if a general statement of
table for major and minor equipment). compliance has been made, however, changes to ensure fully
• Certifications of equipment offered compliant equipment may be requested without any cost implication.
(provide table for each major and minor • Pass/fail, depending on certifications or request of further information.
component). If a general statement of compliance has been made, then changes to
• Manufacturer certificates. ensure fully compliant equipment may be requested without any cost
• Capacity to implement (analysis of implication.
implementation plan provided). • Pass/fail, or submission of these may be requested from preferred
bidders prior to “fail.”
• Pass/fail.
Other
• Projected O&M costs based on • For each system and for each sector or area-based lot, depending on
equipment offered, annual costs, and who is responsible for maintenance and operational costs.
annual component replacement.
Recommendations Note: PV engineer will have re-checked that the components offered
• Bid award proposal. when operated as a system meet performance requirements; any
• Award of multiple lots. further equipment changes required as a result will form part of contract
• Further checks to be undertaken on negotiations.
recommended supplier, based on
declaration of technical compliance
(e.g., additional equipment certifications,
manufacturer certificates, equipment
exchanges required, battery suitability
and adjustments).
Source: Authors’ observations, 2010.

34 | Photovoltaics for Community Service Facilities

During tender adjudication and contract negotiations, a PV implementation plan (e.g., organization, personnel, scheduling,
engineer should assess and confirm that the components and logistics) to make it feasible. Any changes in scope that
offered meet all performance requirements when analyzed as have arisen may be included at this stage.
a system. For example, battery compliance can be a major
concern. An assessment of the battery type and its cycle
life, given the expected daily depth of discharge, should be
ELEMENTS OF VIABLE PV CONTRACTS
based on the batteries offered. While it may not be possible
to choose an alternate battery type, battery sizes could be
The PV contract involves: (i) equipment supply and delivery; (ii)
adjusted upward to achieve the designed battery life.
equipment installation and commissioning; (iii) maintenance (at
least initially); and/or (iv) other related services (Table 15).
Contract negotiations
The complete bid packages for the Uganda ERT and
Contract negotiations, undertaken with the preferred bidder,
Tanzania SSMP are provided as examples of recent projects
clarify outstanding issues (Box 8). At this stage, the purchaser
that incorporate many good practices (Annex 6). Also
may request equipment changes without any price modification,
provided is an updated example of a model bid package,
provided that the bidder is already compliant or has stated
based on the 2009 Mozambique ERAP.
compliance. The purchaser may also request changes in the

BOX 8: ITEMS INCLUDED IN CONTRACT NEGOTIATIONS

Certification of major equipment Installation program

• Clarify outstanding issues and items. • Get blueprint schedule and confirm site selection.
• Get overall signed Declaration of Compliance, if not • Obtain main rollout plan, including number of
already provided. teams, supervision, and detailed rollout program per
team.
Equipment samples for approval
• Get airfreight samples, as necessary, to expedite Revised handover and payment proposal
approvals and ordering; these include CFLs, light • Confirm practical completion and provisional
fittings and reflectors, medical lamps, reading acceptance stages (with minor snags) with supervision
lamps, inverters, battery enclosures, battery fuses, consultant, and confirm payment amount.
lightning surge arrestors, and other equipment. • Confirm final acceptance stage requirements,
confirm payment amount.
System technical reviews
• Check system sizing offered and drawings; check Supervision of responsibilities (may be role of
component matching. Supervision Consultant)
• Make corrections to components, and, if needed, • Supervise site visits and due diligence.
propose changes to standardize equipment. • Reallocate sites that do not meet PV electrification
• Add lightning protection to new specification and as criteria (e.g., too close to grid).
per new drawings (at cost). • Reallocate packages among sites (if numbers of
buildings at site do not meet standards).
Schedule of price variations (if not already included • Allocate additional lights per package to meet
in contract price schedules); obtain for: lighting design requirements, with at least one light
• Cabling between buildings (per meter). per room and passage.
• Cabling strain relief ends (supply and install per pair). • Cable between buildings, with additional DBs.
• Lamp and switch (supply and install). • Determine array and battery locations in each building.
• Distribution board (supply and install with main • Instruct contractor on all of the above items.
2-pole CB and 2 x 1-pole CB). • Change order and check pricing based on the
• Lightning protection (supply and install). variation price schedules provided.

Schedule of equipment delivery; obtain for:

• Blueprint equipment and installation.
• Major equipment for main rollout.
Source: Authors’ observations, 2010.

Photovoltaics for Community Service Facilities | 35

 TABLE 15: TECHNICAL REQUIREMENTS OF PV CONTRACT COMPONENTS
Subject Output Comment
Reasonable lot sizes; Scheduling and phasing, lot sizes, and
cost estimates price schedules.
PV system packages System components, standards, Certificates required; challenge is to vet and confirm
specifications, and certifications. certifications of conformance.
Locations of sites and Summary table of systems and locations. Provide as much site information as possible,
facilities for system including map, transport facilities, and major towns.
installations
Delivery, installations, Delivery schedule and key milestones; how Samples required; pilot installations recommended
and practical and when equipment is to be delivered, to “blueprint” the acceptable quality of
completion usually CIP site of installation within workmanship, within 30–120 days of contract
specified time frames. award.
Commissioning and Procedure for supplier to request On-site security; specify when risk passes to the
acceptance and commissioning, when acceptance and purchaser; internal quality assurance of supplier.
system handover handover occurs, and when warranties
become effective.
Documentation and Responsibilities of the contractor outlined Lines of reporting to be specifically included in user
training in user manual and technical manuals. manual.
Other related services May include inception report with due
diligence, capacity building, supplier’s
internal quality control, initial system
maintenance, and performance tracking.
Payments structure, Component warranties, and one-year defects Local point-of-presence requirements.
warranties, and period on quality of workmanship. Minimum
guarantees failures per year, time to repair, etc.
Payment schedule and financial securities Liquidated damages and holdback or retention
must provide incentives for on-time, monies are important elements.
complete, and satisfactory implementation.
Reporting and A schedule of variation prices for key Changes in sites, facilities, and configurations may
communication components may be required to facilitate be made due to changed on-the-ground conditions.
channels (inception change orders.
report and post-award
modifications)
Maintenance and If a maintenance contract is included, this Fully describe maintenance responsibilities. Must
performance tracking is specified separately in the schedules. include process for maintaining good records of
systems, maintenance schedule/ performance
and repair history. Must also include means for
reporting problems/failures to contractor and
implementing agency.
Source: Authors’ calculations, 2010.

Reasonable lot sizes and cost estimates and system integration, and subcontracts installations and
maintenance to local firms. In many cases, a third tier of
Large tenders might attract the attention of large companies independent contractors is assigned the actual installations.
with the requisite financial capacity. However, few if any Internal quality assurance by the supplier can be tenuous.
major international PV companies have significant interest
in bidding for contracts in off-grid areas; most focus almost Good practice is usually to construct tenders of significant
exclusively on the large and rapidly growing grid-connected size composed of multiple area-based lots (slices) so that
market. At the same time, smaller local companies with off- bidders can qualify for one or more lots. The lots should be
grid capabilities and bidding interest often lack the financial spatially optimized for implementation and maintenance.
capabilities to qualify. A common scenario is that a large firm
with adequate financial capability but minimal off-grid PV Cost estimates, including detailed pricing and component
experience wins the contract, handles component sourcing analysis, will already have been done during the rapid

36 | Photovoltaics for Community Service Facilities

assessment and implementation-plan preparation phases. At designs and the equipment supplied to their facilities, which
the stage of preparing the bid document, these estimates has made system standardization easier.
should be revalidated, taking into account any recent
comparative international procurements and changes in Components should be standardized as much as possible.
local conditions. The estimates are based on the supply and For example, bidders could be required to use a limited
transport of the systems to the location (CIP) and related number of panel, charge controller, inverter, and battery sizes
services (e.g., inception report, installation, commissioning, across all facilities to facilitate interchangeability and lower the
establishment of local-service capacities and after-sales costs of installations, training, maintenance services, stocking
services, maintenance services, record keeping and reporting, of spares and component replacements, and supervision.
and capacity building).
International standards. International or equivalent
The standard price-schedule forms in the SBD models are not standards should be used for the main system components
optimized for rural PV projects. But the forms can be modified (i.e., panels, batteries, controllers, inverters, and energy-
and others added as desired; suggested modifications are saving lights) (Table 16). This will strengthen the bidding
included in the sample bid packages (Annex 6). Reflecting document by reducing uncertainties for both bidders and
their importance as major factors in system success or failure evaluators and reduce the risk of supplying substandard
and to facilitate contract management, specific schedules with equipment. The leader in standards development for PV
detailed costs of related services should be included. and the balance of system components is the International
Electrotechnical Commission (IEC), which is representative of
PV system packages: the committees and working groups of standards agencies
modular/standardized components from most manufacturing countries. (A full list of country
standards agencies is available at www.worldwidestandards.
The number of system types and sizes should be limited com.) Reference is also made to PVGAP certification, which
(e.g., for primary schools, models S-1, S-2, and S-3 would now also falls under IEC (www.iecee.ch). However, as very
be in line with categorizations by responsible ministries). few products bear the PVGAP mark and seal (only a few
This will facilitate bid preparation by suppliers and ease bid models), this requirement is largely ineffective in practice.
evaluations. Some ministries have standardized their building

TABLE 16: GUIDANCE ON INTERNATIONAL STANDARDS FOR OFF-GRID PV SYSTEM COMPONENTS

System Component Equipment Standards and Guidance
Panels • IEC 61215 Ed. 2.0: Crystalline silicon terrestrial photovoltaic modules - Design
Use IEC standards qualification and type approval.
• IEC 61646 Ed. 1.0: Thin-film terrestrial photovoltaic modules - Design qualification and
type approval.
Batteries • IEC 61427 Ed. 1.0 b: Secondary cells and batteries for solar photovoltaic energy
Use IEC standards and systems - General requirements and methods of test.
reference performance • IEC 60896-11: (including amendments 1 and 2): Stationary lead-acid batteries - General
requirements to these requirements and methods of test. Part 1: Vented types.
standards • IEC 60896-22: Stationary lead-acid batteries - General requirements and test methods.
Part 2: Valve-regulated types.
• PV GAP, PVRS 5A “Lead-acid batteries for solar photovoltaic energy systems— General
requirements and methods of test for modified automotive batteries.”
Charge Controllers • IEC 62509 Ed.1: Performance and functioning of photovoltaic battery charge controllers.
Use IEC standards to define • IEC 62109 : Safety of power converters for use in photovoltaic power systems. Part 1:
performance General requirements, Part 3: Controllers.
• IEC 62093 Ed. 1.0: BOS components - Environmental reliability testing - Design
qualification and type approval.
• IEC CISPR 11:1990, Limits and methods of measurement of electromagnetic
disturbance characteristics of industrial, scientific and medical (ISM) radio-frequency
equipment.
• IEC 61000-4:1995, Electromagnetic compatibility (EMC). Part 4: Testing and
measurement techniques, Sections 2-5.
• PV GAP, PVRS6A “Charge controllers for photovoltaic stand-alone systems with a nominal
voltage below 50V” accepted for use in the IECEE PV scheme.

Photovoltaics for Community Service Facilities | 37

 TABLE 16: GUIDANCE ON INTERNATIONAL STANDARDS FOR OFF-GRID PV SYSTEM COMPONENTS (CONTINUED)
System Component Equipment Standards and Guidance
Inverters • IEC 61683 Ed. 2.0: Photovoltaic systems - Power conditioners - Procedure for
Use IEC standards measuring efficiency.
as reference to define • IEC 62109: Safety of power converters for use in photovoltaic power systems. Part 1:
performance General requirements. Part 2: Particular requirements for inverters.
• IEC 62093 Ed. 1.0: BOS components - Environmental reliability testing - Design
qualification and type approval.
• IEC CISPR 11: 1990, Limits and methods of measurement of electromagnetic
disturbance characteristics of industrial, scientific and medical (ISM) radio-frequency
equipment.
• IEC 61000-4: 1995, Electromagnetic compatibility (EMC). Part 4: Testing and
measurement techniques, Sections 2-5.
• PV GAP, PVRS 8A “Inverters for photovoltaic stand-alone systems.”
PV vaccine refrigerators Valid certification for vaccine refrigerators are WHO performance standards: WHO/PQS/E03
(refrigerators and freezers for storing vaccines). Note: Since promulgation of these new PQS
standards, few suppliers have re-tested refrigerators, and certifications prior to WHO/PIS/E3
apparently no longer apply.
Pumps • IEC 62253 Ed.1: Photovoltaic pumping systems - Design qualification and performance
Use IEC standards to define measurements.
pump system performance • IEC 61702 Ed. 1.0: Rating of direct coupled photovoltaic pumping systems.
downstream of solar array
Other specialized Equipment may be tested for compliance against specifications at local testing facility, such
equipment as a standards bureau.
Energy-efficient lights Accept Efficient Lighting Initiative standards (www.efficientlighting.net).
Use IEC standards to define PV GAP, PVRS7A “Lighting systems with fluorescent lamps for photovoltaic stand-alone
performance standards for systems with a nominal voltage below 24 V.”
AC and DC lights • IEC 60969 Ed 2: Self ballasted lamps for general lighting purposes - Performance
Requirements.
• IEC 61347-1: 2007, Lamp control gear. Part 1: General and safety requirements.
• IEC 61347-2: Lamp control gear. Part 3: Particular requirements for AC-supplied
electronic ballasts for fluorescent lamps, Part 4: Particular requirements for DC-supplied
electronic ballasts for general lighting.
Balance of system International standards should apply to electrical components, such as fuses and
components and minor fuseholders, breakers and cabling. However, local equipment standards will often be used.
equipment (battery and Certification is preferred. At a minimum, a declaration of compliance with the standards
other enclosures, array below is needed. Consider those with certificates from independent testing laboratories
structures, switches, cabling confirming that performance complies with specifications in the bid document. For example:
and wiring, breakers, and • IEC 60669-1: Switches for household and similar fixed-electrical installations. Part 1:
fuses and fuseholders) General requirements.
• IEC 60227-1-4: Polyvinyl chloride insulated cables of rated voltage up to and including
450 V/750 V-Parts 1-4: General requirements.
For battery enclosure and array structure, require declaration of compliance with the
specifications and drawings and provision of detailed drawings. After contract award,
samples may be requested and tested at a local testing facility before acceptance. Inspect
again for compliance at the blueprint stage.

Consider those confirmed as having performed satisfactorily in analogous contexts in World

Bank-assisted projects.
Source: Authors’ calculations, 2010.

38 | Photovoltaics for Community Service Facilities

If national standards are also used, equipment certified as Superior options. Notwithstanding the advantages of
conforming to these standards must be identified and the detailed specifications using established standards, there
bidders informed. Many national PV standards will be early is always a possibility of superior options being proposed.
versions or adaptations (with or without modification) of IEC In some cases, for example, appropriate international
standards; thus, the international standards are strongly standards may not yet have been established for low-
preferred. In certain cases and countries, IEC standards are wattage, high lumen per watt LED lights or more advanced
adopted without amendment. The following standards for charge controllers that record usage, although quality LED
crystalline silicon PV modules are substantially the same: IEC lights that could be integrated into many systems in ways
61215: 2005, BS EN 61215: 2005, and DIN EN 61215:2005. that possibly improve efficiencies are available. Bidders may
As stipulated in the World Bank’s procurement guidelines, submit proposals that comply with the specifications and
equipment that meets other standards of “at least substantial also propose options they consider a superior alternative that
equivalence” is acceptable. The challenge, of course, is also meet the performance minimums. The bidder would
to determine in a transparent, objective manner whether a need to present a convincing case with references and
proposed alternative is indeed of substantially equal quality certifications, which could be reviewed by PV experts.
to the specified international standard. The process and
qualified PV experts involved in making such a determination Clarification of specifications, standards, and
should be decided on before opening any bids. equipment eligibility. Issues often arise regarding
uncertainties and possible internal inconsistencies in
A suggestion for establishing domestic preference may arise technical specifications or requirements for documenting
in the case of locally-produced batteries. This can be part of conformance of equipment to specifications. Many such
a broader debate on protecting or stimulating local industry. If problems can be resolved through pre-bid conferences and
deep-cycle batteries are specified, these are usually imported. exchanges of written queries and clarifications.
If “modified” car batteries (i.e., modified SLI batteries) are
specified and if certified ones are produced locally, a domestic Prior to the formal start of the tender process, during
preference is probably not needed to compete on price. Given the promotion and publicity stage, potential bidders can
that battery performance is of paramount importance to the be encouraged to review advance information on draft
long-term sustainability of the entire investment, compromise technical specifications and submit equipment certifications
on battery quality is not good practice. for pre-vetting eligibility. If there is a pre-qualification phase,
bidders should be required to include certifications and
As standards and specifications may be modified late other documented evidence that equipment conforms to
in the preparation process, the approval process for bid specifications and standards; in cases of non-conformance,
documents should allow for the substitution of improved they should be given opportunities to submit substitute
standards and specifications immediately prior to the formal equipment or documentation in their proposals.
issuance of the documents.
Equipment certification conforming to specifications.
Detailed specifications. Open performance-based The bid documents should define how conformance
specifications provide bidders discretion to propose of equipment with specifications is to be documented.
alternative technical solutions. This is not recommended for With international standards and detailed specifications,
contracts for PV systems for community facilities, except for qualification can be based on acceptable certifications by
water-pumping systems and vaccine refrigerators, although acceptable laboratories. Thus, acceptance of equipment is
in the latter case, it is still necessary to specify the PV array based on acceptance of certifications, not on tests conducted
size, battery capacity, controller and other components. In for the project prior to shipping or after arrival in the country;
performance-type contracts, the output required is specified, the facilities to conduct the necessary tests are not available in
and bidders are allowed to size and configure systems most countries that require significant off-grid rural PV services.
based on their own methods. While this is an ideal way to
encourage innovation, few countries have adequate facilities The main components should be certified by laboratories
for testing the performance of components and systems. with ISO 17025 accreditation to undertake the specific tests;
this includes certification for a manufacturer’s own testing if
A viable approach is to use proven technical specifications done under supervision of the inspection secretariat of the
that have been tested and modified in a sequence of IEC Quality Assurance System for Electronic Components
successful procurement processes, although these should (www.iecq.org). Panels and other components that have
be reviewed and adapted by a PV expert to fit the immediate the Photovoltaic Global Approval Program (PV GAP) Quality
project, as appropriate (Annex 6). Mark or the Golden Sun quality mark issued by the China
General Certification Center will have met this requirement.17,18

17 The PV GAP Mark (www.pvgap.org/) is administered by the IECEE (www.iecee.org).

18 For details, visit www.cgc.org.cn/eng/

Photovoltaics for Community Service Facilities | 39

But because these quality seals are not widely used, the closely inspected by all key stakeholders together with
evaluation of most procurement bids will need to carefully technical PV specialists. The purpose is for the contractor
scrutinize the certifications and issuing laboratories. and implementing agency to reach agreement that the
blueprint installations indeed meet all requirements prior
Some purchasers may wish to arrange for pre-shipment to the start of a large, rapid rollout of multiple installations.
inspection of equipment by an independent, contracted The blueprint installations are used as benchmarks for
inspection agency to ensure that the equipment to be acceptance of future installations, as well as for training both
shipped is, in fact, the certified equipment offered in the installers and inspectors of installations.
bid. However, contracting and funding inspections can
be problematic. They should not be done by the supplier Practical completion, commissioning
unless the costs of such inspections were included in the and acceptance, and system handover
bid documents and all bidders were instructed on the
inspections in their bid price. On-site security (after completion, before acceptance).
For logistical reasons, there is a delay, in most cases,
The main components of PV systems—PV modules and between the practical completion of system installation
batteries—are commoditized, and there is seldom value in and commissioning and acceptance. During this time,
visiting factories to inspect production. the systems are usually being used by facility staff. The
responsibility for risk of theft during this period must be
The battery boxes and array mounting structure will usually clearly assigned. If the contractor retains this responsibility
be produced locally, using specified materials and designs. until commissioning, the insurance premium will likely
It can be efficient to vet these models prior to any large- increase substantially. Good practice would be to transfer
scale production and blueprint installations. The contract risk of theft to the implementing agency once the facility
should provide for submitting samples for approval at the staff members have countersigned the Practical Completion
request of the purchaser. Typically, such samples would Certificate, before commissioning.
include air-freighting of any uncertain major equipment
and various minor components: CFLs, light fittings and Practical completion. Once the contractor, who must
reflectors, medical lamps, reading lamps, battery enclosures, have an internal quality-assurance program, is satisfied
battery fuses, lightning surge arrestors (new item), and other that the systems are installed to the required standards and
significant minor equipment. that on-site staff have been trained in system operation and
safety, s/he issues a Practical Completion Certificate, which
Clear process for vetting equipment certifications. may be countersigned by a designated representative of the
Bid documents should describe the process to be used beneficiary facility, and informs the implementing agency.
to determine whether certifications of equipment and
installations are acceptable. The more open and transparent Commissioning and acceptance. This should follow
the process, the more likely there will be strong interest on the practical completion as soon as possible (Box 9).
the part of qualified bidders. Acceptance tests are an important part of quality control
and assurance procedures designed to ensure that systems
Locations of installation sites and facilities are performing to specification. The implementing agency
tests and declares that the installations meet the necessary
The bid package documentation, along with the advance standards, the system is performing to specification, and
data made available via promotions and on websites, should the required user training has been satisfactorily completed.
include project-specific information: The agency then issues an Acceptance Certificate; the result
may be a list of items for completion or correction and other
• descriptions and maps of project areas, road access, issues, although this may be delayed until an identified list of
and major towns; items for additional work or correction has been completed.
• descriptions of the lots;
• conditions and facilities available on the sites (e.g., water The contractor provides the necessary equipment for the
or generators); and acceptance tests. A full procedure for the acceptance tests
• environmental conditions, rainfall, temperature, and should be established during the process of inspecting and
solar-resource data. accepting the blueprint installations.

Test Installations System handover. The systems are officially handed

over from the contractor to the implementing agency or
Pilot blueprint installations. A useful first step is for beneficiary entity via a formal document. The handover could
the supplier to complete a series of pilot or “blueprint” occur at the time of issuing the Acceptance Certificate, in
installations of the initial models of each type of system, which case the implementing agency may later transfer
hopefully in a relatively accessible location, which can be asset ownership to another entity. In any event, the project

40 | Photovoltaics for Community Service Facilities

documentation should clearly describe the hand-over The structure of payments should provide the supplier
process and establishment of ownership (Box 9). adequate cash flow and, at the same time, the incentive
to perform on time, completely, and in compliance with
Internal quality assurance of suppliers. Suppliers should technical requirements. PV systems are capital intensive
have an internal quality assurance process, and not rely on the and their costs heavily front-loaded, with most supplier
implementing agency’s verification and inspection arrangements costs incurred in the purchase of panels and batteries.
to discover problems that will later be rectified by the contractor. Nonetheless, the payment conditions must provide sufficient
Such internal quality control should be included in the schedule incentive to complete the contract.
of related services in the supply requirements. An incentive
for internal quality assurance is to impose the added costs of To ensure transparency and prevent undue frontloading of
follow-up inspections on the supplier. payments (i.e., shifting of maintenance and warranties into
supply and install components, it is recommended that
Payment structure, warranties, and guarantees procurement be structured into separate contracts or price
schedules, as follows:
At any stage of a contract, the supplier must balance costs
to fulfill the contract with outstanding payments due and 1. Supply and install contract schedule.
their performance bonds. Unscrupulous suppliers may walk 2. Initial maintenance schedule (say, year 1).
away should the balance of costs far outweigh outstanding 3. Maintenance schedule (years 2–5, with optional renewal).
payments. Ultimately the total contract arrangement of 4. Warranties.
payment structure, performance, and warranty securities,
and liquidated damages has a transaction cost, which, if too Warranties. Warranty and maintenance periods usually begin
high, will dissuade potential bidders from participating and after issue of the Acceptance Certificate. Long warranties
drive up project costs. seem desirable but unrealistically long component warranties
simply add cost to the contract. Long warranties are easier

BOX 9: EXAMPLE OF INSPECTIONS AND HANDOVER PROCEDURE

The following procedures shall apply for Acceptance documentation.

Testing and Commissioning of the installation: • The Contractor and Project Manager will be present
at the Acceptance Tests.
• The Contractor shall satisfy himself that the • At the Acceptance Inspection, the Contractor will
installation is completed in accordance with the be issued a certificate stating all defects of the
Specification and any variations that have been installation or part at that time.
issued before requesting an inspection by the • If the defects are minor, then the installation will
Project Manager. be taken over by the Project Manager using the
• The Contractor will train the staff in basic operational Acceptance Certificate. If defects are of a major
procedure and first-line maintenance before nature, then the Contractor will correct these
commissioning. The system may be used by the staff. defects and request a further inspection.
• The Contractor will complete the Practical • The Project Manager will determine whether staff
Completion Log-sheet as instructed, and submit to members have been adequately trained in basic
the Project Manager. operational procedure and first-line maintenance.
• Sometime after Practical Completion of the • An Acceptance Certificate will only be issued once
installation the systems will be subject to the above-mentioned, major defects have been
Acceptance/Commissioning Inspection by the rectified and inspected, and the staff members
Project Manager. satisfactorily trained.
• Prior to inspection, the Contractor shall hand over • The Guarantee and Maintenance Periods will
to the Project Manager all wiring diagrams and commence from the date of satisfactory completion
necessary documentation. of the last installation in the contract, as dated in the
• The Acceptance/Commissioning Inspection by Acceptance Certificate.
the Project Manager will occur within 14 days
of notification and handing over of necessary

Source: Authors’ observations, 2010.

Photovoltaics for Community Service Facilities | 41

to enforce if combined with a maintenance contract, and of liquidated damages (e.g., 0.1 percent per day or a portion
supported by performance payments and guarantees. thereof for delays beyond the deadline to a maximum of 8
percent of the value of the supply and installation contract)
The typical range of component performance warranties are and subsequent forfeiture of the performance bond. The
as follows: formulas for calculating the liquidated damages are detailed in
the Special Conditions of the Contract.
• PV panels: 20–25 years to 80 percent of original
specified output; The basic requirements for equipment performance would
• Inverter and charge controller: 1–7 years (typically 3–5 cover the following:
years);
• Batteries: 1–7 years (typically 5 or more years can be • There would be a specified 1–2 year, defect liability
attained for the best deep-cycle ones but with stringent period on quality of equipment and installation following
management and data-recording conditions attached, acceptance, during which any omissions or faults would
and a minimum 1 year for modified SLI car batteries); and be attended to without cost to the purchaser.
• Lights: 1–3 years. • Should a stipulated portion (e.g., 10 percent) of any
class of equipment fail within the specified period, that
In all instances, the warranty conditions must be realizable; whole class of equipment would be replaced by suitable
otherwise, the warranties will be valueless. For batteries compliant equipment without cost to the purchaser.
specifically, manufacturers’ conditions for long warranties • Any failure of system components during their respective
may be too onerous, and better suited to batteries carefully warranty periods, through no act of negligence on the
maintained in standby applications in air-conditioned urban part of the user, would mean prompt on-site repair or
environments in large cities, than the challenging conditions replacement, free of charge, by the contractor.
of remote, rural institutions.
Longer-term equipment warranties are more challenging to
A Certificate of Authority is to be provided for each piece enforce. These warranties can be dealt with via performance
of equipment under guarantee. In addition, a copy of the bonds held until the end of the warranty period, while a
manufacturer’s guarantee is to be supplied with the tender. less expensive option is to combine them with maintenance
While secure warranties are necessary, it is preferable to rely performance contracts. Lack of timely response to warranty
on the systems and contractor working as specified and claims could result in the application of liquidated damages.
agreed. In practice, it can be difficult and time-consuming
to execute these provisions. Also, it can become difficult to A maintenance performance contract must clearly specify the
source replacement panels, batteries, controllers, and other required system performance (maximum number of failures
equipment if they must be imported, particularly if the original per year) and contractor responses (time to repair), how
manufacturers are no longer in business or have merged these will be measured, and how payments will be affected
with other firms. and liquidated damages applied for non-responsiveness.

Warranties should be transferable. For short-term supply Final payments (retention payments) and contract closeout
and install contracts, warranty certificates are passed on to can be scheduled after completion of the initial maintenance
the purchaser after installation is complete. For longer-term and the defect liability periods.
supply, install, and maintain contracts, the certificates remain
with the supplier until expiration of the maintenance portion Reporting and communication channels
of the contract. Should the supplier go out of business or
default, then the warranties are transferable to either the Contract documentation should spell out the communication
purchaser or another supplier. and reporting channels and responsibilities during: (i) installation;
(ii) the defect liability period; and (iii) long-term operation and
Liquidated damages, performance bonds, and retention maintenance of systems. These would cover communication
money. The contract provisions for liquidated damages, lines from the contractor to project manager, from user to
performance bonds, and final or retention payments should maintenance manager, including who to call in case of
be carefully structured, with the assistance of procurement breakdowns. The lines of reporting for the user should be
and legal specialists, to deal with potential delays in contract consistent from the implementation to the operational phases
implementation and failure to meet warranty and other (Figure 12, grey area). Additional lines of communication are
obligations. In general, liquidated damages are applied to required for reporting poor maintenance services, as well as
delays or performance failures; the supplier is usually required how these would be dealt with in cases of non-responsiveness
to post a bank guarantee as a performance bond to cover (Figure 12). These communication channels should, in many
the contract performance and warranty obligations, and a cases, reinforce and build on existing effective channels. In
final payment is retained to encourage completion. Delays addition to these institutional channels, arrangements should
and performance failures are most often handled by means be made for direct communication between users and the

42 | Photovoltaics for Community Service Facilities

FIGURE 12: COMMUNICATION CHANNELS

Initial Project Implementation Phase Long-Term Operational Phase

Provincial Ministry of Energy Option 1 Option 2

One-year Initial Two-year Provincially Managed Nationally Supported

Defects Period Maintenance Maintenance Maintenance
Contract Contract Contract
/ŵƉůĞŵĞŶƟŶŐ /ŵƉůĞŵĞŶƟŶŐ Provincial Ministry of National Ministry of
ŐĞŶĐLJ ŐĞŶĐLJ Health Maintenance Health Maintenance
Department Department
Provincial
Ministry of Health

District Hospital Maintenance Maintenance

^ŽůĂƌŽŶƚƌĂĐƚŽƌ ^ŽůĂƌŽŶƚƌĂĐƚŽƌ Contractor Contractor
Health Center

Source: Authors’ schematics, 2010.

implementing agency, particularly in cases of system failures not Maintenance and performance tracking
dealt with satisfactorily and other complaints.
It is often desirable to include maintenance in the overall
Inception report and post-award modifications. For PV procurement package. The contract will then stipulate
projects in remote communities, the field situation surveyed exactly how and when maintenance will occur, how it will be
during project preparation will often have changed materially managed and supervised, and how it will overlap with supplier
by the time implementation arrives. The information included warranties. Maintenance plans for the project and post-project
in the tender documents may not be completely accurate. periods will have been prepared prior to procurement as part
For example, communities may have been electrified, of the implementation plan, and the details and requirements
abandoned, or become inaccessible due to weather or should be included in the bid documents (Part 5).
conflicts; new facilities may have been constructed; or
staffing patterns may have changed.
CONTRACT MANAGEMENT: ROLLOUT AND
To make a rapid and flexible adjustment to changed LONG-TERM SUPERVISION
conditions, it has been useful to require that the supplier
conduct due diligence at the sites to confirm numbers and Contract management and long-term supervision, at a
conditions of facilities, grid extensions, and other factors that minimum, aim to ensure that the implementing agency
materially affect the scope of implementation. The results receives the contracted goods and services in the agreed-to
of the post-award due diligence can be reported on in an quantities, quality, and time periods while complying with all
inception report, which should be included in the schedule of procedural, documentation, and legal requirements. However,
related services in the supply requirements. But due diligence effective contract management and supervision can well
done by the supplier may be viewed as raising conflicts of exceed that minimum and be definitive in turning even weak
interest; alternatively it could be conducted by a professional or mediocre designs into sustainable operations. Contract
transaction advisor or supervision consultant. In that case, management includes field verification that what is delivered
however, the supplier may be resistant to accepting contract conforms to contract requirements in terms of quantity, quality,
changes without independent verification of the on-the-ground scheduling, and later monitoring and tracking maintenance
situation. The most practicable approach is likely to provide for services and system performance. For off-grid PV projects,
both elements; that is, due diligence by both the supplier and this takes considerable time and effort in remote, often difficult-
the transaction/supervision consultant, resulting in an agreed to-reach locations. This section highlights the conditions for
set of necessary contractual modifications. effective PV contract management and supervisory support
during rollout and over the longer term.
Price adjustments. If the length of the contract is not more
than 18 months, then bid prices can be firm and no provision Conditions for effective contract management
for price adjustments is necessary, except for changed
conditions. If medium- or longer-term maintenance and supply Clear, well-assigned responsibilities. The agency
of replacement components is included, the bid documents responsible for contract management should be clearly
may need to include the formulas or indexes to be used in defined and the delegation of authority within the
adjusting prices to accommodate major cost changes. implementing agency should be agreed on and fixed

Photovoltaics for Community Service Facilities | 43

in advance. If the implementing agency has a pattern A sound database. The systems database should be
of ineffective decision making, delayed disbursements, developed at the outset. This should include information on
insufficient integrity, insufficient operating funds (e.g., for the location with GIS coordinates, components, maintenance,
staff travel to the field for verifications), or other capacity or visits, complaints, system usage, repair and replacement
practices features that will affect the rollout or longer-term history, failures and failure modes, and warranties.
operation, these shortcomings should be recognized and
tackled well before procurement begins. Sound Plan B. The best laid plans are not fail-proof;
thus, a sound contingency plan is necessary. Contingency
Partnership approach. Many projects that provide PV arrangements—standard contract forms that lead to warranty
for community facilities involve multiple agencies and securities, performance securities, liquidated damages, and
levels of government, private firms, NGOs, and community other provisions—protect the implementing agency but on
groups. Supply, install, and maintain contracts are effectively their own do not constitute an adequate Plan B. Aspects
partnerships, with the public sector not only funding the to be thought through in advance include access to funds
contracts but also, depending on the case, undertaking for the transition to and implementation of the contingency
capacity building, promotion, subsidies, and technical support. arrangements. For example, if performance securities are called
Elements of a sound partnership in rural PV projects include: for, to whom are the funds paid, and how do they become
available to the implementing agency that may wish to contract
• Quality assurance by the contractor. As a first step, replacement firms to conduct remedial work and maintenance?
the contractor should supervise its own performance
and not rely on the implementing agency for verification Clear post-project provisions. Who supervises fulfillment
(e.g., ensuring that equipment and installation conform of any continuing warranty and maintenance obligations
to requirements). This requires the contractor to have as the project closes? What are the provisions for holding
internal controls (e.g., independent post-installation and managing any warranty and performance securities?
visits to check quality, documentation and user Most project designs do not adequately address questions
training), and not simply pass on installer reports to the of maintenance practices and capacities post-project. The
implementing agency, even when the reports have been arrangements and resources for contract management and
countersigned by officials of the community facility. supervision aspects should also be covered during project
• Flexible, no-fault adjustments to changed preparation.
circumstances. As a rule, off-grid projects occur in
sparsely populated, distant communities that take time Adequate resources for supervision. Contract
to reach. The data on grid extensions, road access, management tasks, including in-the-field tasks, should be
the local economy, household numbers, and other broken down, the resource requirements assessed, and
information used during project preparation may be the budgetary provisions made. Cost estimates should
several years out of date and possibly no longer valid by be built up (e.g., how many field trips or days and unit
the time field implementation gets under way. All parties costs per trip) and not simply estimated in a rough manner.
must be ready to make appropriate adjustments to The resource requirements will be more significant if the
changed circumstances. tasks include compliance with regulatory requirements for
• Timely disbursements and decision making by equipment standards, service quality, and tariffs; alternatively,
the implementing agency. Supplier performance if the implementing agency serves as a de facto regulator,
is partly conditioned by that of the implementing the resource requirements will be used to supervise the
agency. On-time disbursements, responsive decision same issues. The resources and capacities to meet these
making, and no requests for unnecessary or redundant responsibilities should be determined and put in place before
documentation will facilitate the supplier’s performance. procurement of systems.
• Frequent stakeholder communications. Regular
stakeholder consultations at multiple levels should be Two unfortunate resourcing practices too frequently
frequent. These consultations should be broad-based, encountered are as follows:
including agencies, contractors, local leaders, and
others. An objective is to share information and jointly • In efforts to achieve acceptable ratios, project
resolve problems as early as possible. administrative costs may be estimated to be
• Contract clarity: foundation of a good partnership. unrealistically low in relation to, say, the investment
All parties should fully understand the terms and costs of the systems. This approach can be short-
requirements under the contract. An objective during sighted and imprudent.
negotiations and later during the inception stage should • Resources formally assigned for in-the-field supervision
be to fine-tune a detailed, common understanding of may be captured by higher-level officials (e.g., four-
the targets, milestones, metrics, triggers, procedures, wheel drive vehicles procured for fieldwork may not
forms, and other implementation details. actually be available). This obviously weakens contract
management and undermines sustainability.

44 | Photovoltaics for Community Service Facilities

Transaction and supervision support Rollout supervision

The supplementary resources and capacities required for During the rollout, the immediate focus is ensuring that
conducting procurements and supervising implementation the equipment supplied is of good quality; is correctly
should be carefully defined. These may be necessary installed; and provisions for user training, spare parts, and
for assisting with transactions through the verification of initial maintenance are done fully and as contracted. This
equipment, installation, and services. The required skills phase requires intensive field supervision, including frequent
may include those of lawyers, PV engineers, procurement consultations with the contractor, customers, and community
specialists, field technicians, economists, and rural PV and other officials and leaders.
market specialists.
During this period, contract adjustments are most likely
Technical judgments are made at multiple stages, from needed. Close field supervision will yield the information
initial design through acceptance of final installations. PV and insights needed to support judgments on the
engineers who are aware of current best practices and not appropriateness of any proposed modifications.
linked to potential suppliers are required for:
Longer-term supervision
• preparing technical designs and equipment
specifications; Longer-term supervision and oversight, during both project
• vetting certifications and other documentation and post-project periods, should be based on sound
confirming that the equipment proposed in the bid maintenance practices, clear and appropriate ownership,
conforms with specifications; and good record keeping.
• vetting bids to confirm systems with the offered
components will meet performance requirements; and Monitoring fulfillment of the maintenance plan and taking
• assisting supervision of implementation progress, corrective actions as needed form the core of longer-term
including: (i) acceptance of the inception report; (ii) supervision work (Part 5). The maintenance requirements
acceptance of the blueprint installations and training; (iii) include the funding and scheduling of component
approval of the commissioning of the initial systems; (iv) replacements and upkeep of a comprehensive database on
approval of user and O&M documentation; (v) approval the systems and their maintenance.
of the capacity-building program; (vi) approval of the
maintenance protocols and training of technicians; (vii) If well-assigned and the needed capacities have been
reviews of maintenance performance; (viii) reviews of prepared, ownership will help drive sustainability. The owning
warranty administration and assistance in addressing agency (whether or not the initial implementing agency) will
any issues; (ix) vetting of final payments and contract presumably take the lead supervisory role, and should be
close-out; and (x) support and supervision of the supported to develop the capacity to handle it.
verification staff and consultants.
Evaluation
Success will entail systematic, timely, and sustained
supervision by PV technicians who can troubleshoot At a minimum, evaluation should cover the sustainability of
problems, have high integrity, and be at ease travelling the PV systems. It addresses whether they are working, how
efficiently for extended periods in remote areas. well are they performing, and identifies performance and
other issues. In some cases, evaluation also focuses on the
Frequently, local supervision and verification consultants are impacts and benefits levels (e.g., whether expected health or
used for site inspections, commissioning, and verification educational benefits have arisen as a result of the PV system,
of performance of maintenance obligations and system whether any unexpected benefits have occurred, system
performance tracking. Multiple, independent verification usage, and demand for more power).
consultants are typically necessary for repeated visits (Annex 4).

Photovoltaics for Community Service Facilities | 45

46 | Photovoltaics for Community Service Facilities
 Part 5. Long-term Operation

Deciding how to handle post-project maintenance and cities, and their costs to send technicians to remote
an array of related issues—system ownership, recurrent areas are high; these may be acceptable during initial
funding for spare parts and repairs, and tracking of system maintenance under the supply-and-install contract, but
maintenance and performance and management—should may be unaffordable for many poor communities and
be decided during preparation of the PV implementation budget-constrained government organizations over the
plan and certainly before moving forward to project longer term.
implementation. Building capacity for the continuity of • Will area-based clustering of maintenance services and
maintenance, which is critical to achieving long-term contracts be more cost-effective?
operational sustainability of PV systems, should be done • Should extended maintenance form part of the supply-
during the project. and-install contract or would separate, longer-term
maintenance contracts be more cost-effective? Issuing
Project management and supervision tend to center on the a single contract to cover supply and installation and
capital costs and pace of installations. Contracts to install maintenance (e.g., 5 years with an option to extend)
PV systems include an initial maintenance period by the may have value in ensuring that full responsibility is
supplier, and some additional contracting of maintenance borne by one contractor. However, this single contractor
may be possible while project funding is available. Eventually, may have good capabilities for supply and installation,
however, the post-project period arrives. From that point but have limited capability for maintenance where on-
forward, system sustainability depends, in large part, on the-ground capacity is needed.
the continuity of maintenance services and financing of • How will quality assurance and maintenance
maintenance and component replacements. management be handled (e.g., can performance and
reliability standards for available services be established
so that, if a contractor fails to meet them, penalties can
CONTRACTED OR IN-HOUSE MAINTENANCE? be applied)?
• Which maintenance and reporting options best match
Choosing a maintenance approach is done initially during the component manufacturers’ requirements for
preparation of the PV implementation plan. As more upholding system and component warranties?
funding and capacities are usually available during, rather • How will the users—facility staff, who may change over
than after, the project, maintenance will likely be handled time—be trained and retrained (accounting for staff
differently during project and post-project periods. For both turnover) and informed of the steps to take to get help in
periods, the basic maintenance options are: (i) contracted cases of system failures or performance problems?
maintenance, as is often done by private entities for remote • How will maintenance and component replacements
facilities; or (ii) in-house arrangements, possibly with be funded post project? This is a big question, and
community participation. the answer must be clear and firm, based on the solid
concurrence of stakeholders responsible for the funding.
Many factors must be considered to determine the most • Who will own the systems and how will ownership be
effective maintenance arrangements for both the project and assigned? The answer will fix the context for post-
post-project periods. The major questions are: project maintenance.
• How will maintenance performance be tracked and
• What are the local experiences, in-house and otherwise, supervised during the project and post-project periods?
including those with private firms, with maintenance
of PV systems in remote facilities? What are the track In many countries, health, education, and water sectors
records; which approaches are promising? have in-house maintenance departments; thus, one possible
• Will private firms be more cost-effective and deliver consideration is to use in-house maintenance capacities to
better performance results than in-house or community- cover the new PV investments. In these cases, the strengths
based arrangements? In many countries, companies and weaknesses of in-house capacities should be assessed.
with PV servicing capabilities are based in the main General observations are as follows:

Photovoltaics for Community Service Facilities | 47

 • Most sectors have limited experience in taking over PV POST-PROJECT OPERATIONAL FINANCING
maintenance tasks after installation.
• In most sectors, planning departments can identity Management and financing of PV system use and
financial challenges and constraints in meeting regular maintenance, including component replacements, are key
maintenance costs and irregular capital costs, such as to system sustainability over the long term. Oftentimes
battery replacements. the most difficult question to resolve is how to pay for
• Health ministries usually have the necessary mechanical component replacements, from light bulbs to batteries.
and electrical skills for servicing medical equipment, The responsibilities for meeting the recurrent costs of
diesel engines, and cold-chain maintenance (usually maintenance and component replacements are frequently
following WHO guidelines). Constraints may include lack stated as general understandings, and any commitments
of capacity to undertake more work, frozen posts, lack that might be made are often not sufficiently firm. Projects
of vehicles, and limited maintenance budgets or finances that fund initial system investments are usually closed out
reprioritized for other purposes (i.e., hospitals first). If before issues of maintenance, ownership, and operational
WHO/EPI PV vaccine is being successfully implemented, funding begin to affect sustainability. Clearly, these matters
it provides useful country-specific guidelines. should be settled before system installation and indeed
• In education ministries, maintenance departments before final project approval.
usually focus almost entirely on physical infrastructure
and buildings, and current capacity is often oriented When considering post-project operation, the first question
toward civil and architectural skills, with limited electrical to raise is how maintenance will be funded. The principle
and mechanical skills. Other constraints are similar to is “you get what you pay for.” The PV implementation plan
those of the health sector. should fully articulate how the financing of maintenance,
• For rural water ministries, maintenance departments are repairs, and component replacements are to be handled.
usually highly experienced in operating and maintaining The extent to which financing relies on central government
remote diesel pumps and servicing mechanical ministries, local governments, beneficiary communities,
equipment. They are usually strong in-house civil and direct beneficiaries, or other sources will depend on the
mechanical skills and logistics and are well-equipped local context and opportunities, which should be thoroughly
with vehicles. But they usually focus on capital projects, assessed before settling on a particular approach as the one
and increasingly tend to contract out maintenance in mostly likely to succeed. Prior to determining the feasibility of
order to expand water services. the mechanism, thorough consultations should be held with
the entities expected to provide funding.

OWNERSHIP Annual budgets and financing sources should be developed

in collaboration with the parties responsible for providing the
Before determining the details of the maintenance plan, it recurrent financing. If there are serious concerns about the
is necessary to determine who will own the system. While timely availability of adequate funds to cover operating costs,
it is widely known that ill-defined operational responsibilities including battery replacements, the option of collecting
and vague or fragmented ownership will lower sustainability, and setting aside annual allocations in an escrow account
these issues are often inadequately addressed during project managed by an independent trustee should be considered.
preparation. In some cases, post-installation and post-
project ownership of the PV systems is not clearly specified,
and the “how” and “who” of ownership handover are unclear. BENEFICIARY CONTRIBUTIONS
In some cases, central agencies retain ownership, even
when not involved in maintenance or recurrent funding, It may be useful to consider staff, community, and other
which can contribute to weak maintenance discipline and direct and indirect beneficiary contributions to maintenance
uncertain funding of recurrent costs. Ownership, in the sense costs as both a financing device and a way to instill a
of being empowered to manage and take responsibility for sense of ownership that contributes to more disciplined
the systems, perhaps even more so than the formal condition maintenance and use. But such contributions should only
of ownership, is an important factor in the readiness and be incorporated into the financing plan after having had
capacity of facility users and beneficiaries to use the systems open and satisfactory consultations. If not well handled,
appropriately and contribute to the long-term costs of donor financing could stand to weaken the sense of local
maintenance and component replacements. empowerment, making it difficult to secure beneficiary
participation in maintenance funding.
Good practice is to clearly establish what will be the long-
term ownership and align responsibilities for recurrent funding
and maintenance with ownership.

48 | Photovoltaics for Community Service Facilities

The effectiveness of beneficiary participation in the If local governments are to contribute, then discussions
operation and maintenance of community water supply has and agreements should be reached with local government
long been cited as a key factor in the sustainability of such officials, including budget officials.
schemes,19 and is a main element in the approach of many
NGOs. For PV systems in staff housing, approaches vary
from providing systems on a lease-to-own basis, with the SECURING MAINTENANCE
staff assisted in purchasing systems via a combination of FUNDING COMMITMENTS
grants and loans, to staff being charged a flat monthly fee
for system use. The possibilities for beneficiary contributions Prior to initiating procurement, the strongest possible
are many, ranging from income generation (e.g., mobile- recommendation is to secure commitments and obligations
phone charging or fees to watch community TV) to various to fund the recurrent costs of maintenance and component
fundraising mechanisms (Box 10). What is possible and replacements. Once procurement is under way and
appropriate will depend on the local context. installations have been done, the focus of beneficiaries often
dissipates, and any previous leverage is quickly lost.
If beneficiaries are to contribute to operation and
maintenance, more effort than simply acquiring signed letters Artificial donor-driven deadlines and targets (e.g., achieving
of intent will be required. Arrangements will entail social- project approval during a specific donor fiscal year or hitting
preparation activities with facility staff and other beneficiaries. disbursement targets) can push implementation ahead of
If facility staff members are to take responsibility for securing itself. For example, when inadequate provisions are made
at least part of the funds for maintenance and component during project preparation, it is sometimes suggested to
replacements, this should be carefully discussed with them. finance a maintenance contract with project funds as an

BOX 10: SUDAN’S COMMUNITY DEVELOPMENT FUND: LESSONS IN BENEFICIARY FUNDING

In remote areas of rural Sudan, the Community Still in its early years, the CDF efforts have been built on
Development Fund (CDF) provides PV systems for sound practices; key among them are:
community clinics, schools, water pumping, clubs and
street lights. From the outset, the lack of locally available • Solid social preparation, using a bottom-up
maintenance services and spare parts and secured approach that has included multiple discussions
funding for maintenance and component replacements with the community and assistance in identifying
were known challenges. Except for vaccine refrigerators, their priorities and expectations for the PV systems;
whose maintenance was separately funded via the • Firm community commitments, as demonstrated
Expanded Program on Immunization (EPI), rural service by having raised community contributions well in
facilities and communities were charged with meeting advance of system installations;
maintenance costs, with each choosing its own methods • Effective community leadership;
to generate needed revenues. A pre-condition for • Community empowerment and responsibility for the
receiving the PV systems was a contribution equal to 10 PV systems;
percent of the system cost as seed money for the CDF. • Community-level capacity building in maintenance
services and troubleshooting;
Fundraising mechanisms included fees for mobile-phone • Development of linkages with spare-parts suppliers;
charging, school fees, entrance and membership fees and
for community clubs, and contributions. In some cases, • Development of reliable backup technical and
the community levied its members proportionate to support services.
families’ financial capabilities; in other cases, individuals
or families voluntarily contributed. For street lights, the
group of families in the vicinity of each light covered the
costs of “their” light; if not, the light would be moved to
another location.

Source: Mohamed Ali Hamid, information provided during Dar es Salaam workshop on PV Guidance and Toolkit, May 2010.

19 Deepa Narayan, Contribution of People’s Participation: Evidence from 121 Rural Water Supply Projects, World Bank (1995).

Photovoltaics for Community Service Facilities | 49

interim mechanism, ensuring maintenance services while components, such as inverters and charge controllers,
transitioning over a period of up to as much as 3–5 years to which may have failed due to lightning damage or misuse.
the more permanent, albeit yet-to-be-defined, post-project • System reliability and minimum response times to
arrangement. This is, of course, fraught with the risk that fix service interruptions.
long-term financing questions will not be resolved in a timely • Troubleshooting and expert support. Capabilities
way after the systems have been installed. should be in place to respond to user queries and
analyze system shutdowns and other issues.
• Spare parts. This includes details for supplying and
MAINTENANCE PLANS stocking spares for all major and minor components and
equipment pieces. A standard may be established for
PV system maintenance is relatively simple. Structured the percentage of repairs to be made with spares (say,
preventative maintenance will yield significant benefits. 80 percent) rather than by special order.
However, a lack of preventative maintenance will result in • Scheduled component replacements. These are the
eventual system failure and more costly repair bills. The post- details for planned replacement of batteries, controllers,
project costs of sustaining systems mainly involve: and inverters at the end of their designed lifetime.
• Lights. These are detailed rules for replacing bulbs and
• preventative maintenance inspections and system light fixtures, including the responsible parties for bearing
checking on an annual or biannual basis, which may the cost and stocking replacements.
include battery servicing and record keeping; • Battery disposal. Commercial disposal or recycling
• replacement and exchange of faulty components that options may be available.
may have failed due to lightning damage or misuse, • Capacity building. This includes training and refresher
such as lights, inverters, and charge controllers; training of facility staff, who may change over time, in how
• coordinated battery replacement and disposal every 3–6 to get help for system performance problems or failures.
years, depending on the predicted and actual battery
life; and
• maintenance management, including analysis of routine MAINTENANCE TIERS AND TRACKING
maintenance, service, and performance data.
An important principle is that maintenanace arrangements
Maintenance plans for the project and post-project periods, should be tiered, with clearly delineated task responsibilities
to be included in the implementation plan, should define and capacities at each level. We recommend a three-tier
tasks, schedules, and responsibilities. They should include system, with capacity-building provisions in the maintenance
a formal agreement on commitments, signed by the plan to address each (Table 17). Facility staff will usually
responsible organization prior to system installation. Of be responsible for day-to-day system control and use
course, the plans will only be as good as the commitments and routine maintenance. Their capacity to meet these
of the organizations responsible for handling the tasks, responsibilities must be built and, as staff change, rebuilt and
including the recurrent financing. refreshed with training and supportive supervision.

Whether incorporated into a supply-and-install contract, System performance and maintenance should be carefully
a separate contract, or otherwise handled, maintenance recorded. Tracking should cover each maintenance service,
plans for the project and post-project periods should be system shutdowns, and other events. Records can facilitate
established with key stakeholders before procurement accurate and speedy troubleshooting in cases of system failure
begins. If needed, details of the plans should be revised and can be valuable in anticipating problems, particularly with
after blueprint installations and in discussions with the batteries, before they cause a shutdown. A diligently kept
supplier. Plans should carefully define the procedures and logbook is also essential in dealing with many warranty issues.
performance indicators and provide resources for:
At the facility level, upkeep of this tracking system, in the form
• Routine maintenance, which is done by users. of a logbook, can be incorporated into the organizational rules
• Preventative maintenance inspections (annual or for system use, control, and maintenance. Opportunities for
biannual). This may include battery servicing (if included recording and tracking system maintenance and performance
with the system) and replacement of lights and appliances using Internet technologies offer the promise of rapid
(depending on how ownership and responsibilities have responses to problems and sound monitoring, contributing to
been fixed), as well as record keeping. reductions in operating costs, improved reliability, and longer-
• Callout and replacement. This is the exchange of faulty term sustainability.

50 | Photovoltaics for Community Service Facilities

 TABLE 17: MAINTENANCE OVERVIEW
Maintenance Frequency Maintenance PV Maintenance and Reporting Task
Level Responsibility
1st tier: Daily/Weekly User/System System operator tasks
Basic user routine Operator • Read and record dial indicators on charge controller
maintenance and refrigerator thermometers.
• Check battery levels without opening batteries and
report problems.
• Replace non-operational bulbs.
• Wipe solar panels and wipe and clean batteries.
• Manage load as and when necessary.
• Report problems and faults accurately and without delay.
2nd tier: Quarterly/twice a Maintenance Preventative maintenance inspections
Routine and year/annually Technicians • Check system diagnostics and analysis of conflicting
preventative information.
maintenance; • Top up batteries and measure battery performance.
servicing; trouble- Replacements
shooting • Install minor components needing replacement.
Call-out maintenance
• Respond to user reports, diagnose and repair.
• Report complex problems to specialists.
Reporting
• Complete maintenance report logs and record
measurements.
3rd tier: Once or twice Skilled Technicians System performance monitoring
Skilled diagnostic over the system • Respond to problems reported by 2nd level.
or major life • Perform complex system diagnostics.
component • Reset/re-program component set-points.
replacement and • Repair and rebuild equipment.
rebuilding work • Deal with warrantee issues.
• Plan and manage battery replacements and disposal.
• Re-commission systems after component replacement.
Maintenance Monthly Maintenance Supervise maintenance regime
Manager Manager • Assure quality.
• Monitor callouts and responses.
• Plan major component replacements and disposal.
• Supervise payment.
• Keep all maintenance-visits records for warranty
purposes.
Source: Authors’ calculations, 2010.

The communications arrrangements for both the project and MAINTENANCE

post-project periods should provide users at the facility level PERFORMANCE CONTRACTS
a ready means to contact, first, the maintenance technicians
to report faults and problems and, secondly, the mainteance A maintenance performance contract aims to ensure
manager (third tier of the maintenance hierarchy) in cases of a specified level of maintenance and meet minimum
non-responsive maintenance technicians (Figure 12). performance indicators. An indicative structuring of the
key elements of a maintenance performance contract is
Contributions from each of those responsible for the presented in Table 18.
funding commitments should be tracked. Non-payment or
delayed payment by any of those responsible can disrupt Even if maintenance is not included as part of the supply-
maintenance services and rapidly lead to system shutdowns. and-install contract, it is useful to describe and include
the above information to indicate the responsibilities of the
parties to the contract and beneficiaries.

Photovoltaics for Community Service Facilities | 51

 TABLE 18: KEY ELEMENTS OF MAINTENANCE PERFORMANCE CONTRACT
Contract Item Comment/Description
Routine maintenance Specification of maintenance tasks, including completion of attached technical maintenance sheet.
Routine maintenance Usually a visit to each site at least every 6 months. Preventive maintenance intervals depend
intervals primarily on battery maintenance requirements and could be as long as one year. For supply,
installation, and maintenance contracts, intervals may be front-weighted to address early installation
quality issues.
Local point of Local point of presence or call center required for reasonable response times to callouts. Contractor
presence is to have a defined fault reporting chain.
Callout response and Performance contract should specify maximum callout response time and maximum time to
repair times rectify the problem. Callouts are usually restricted to complete system or major equipment failures.
Requirements may differ between critical systems, such as vaccine refrigerators, and others, such
as staff lighting.
Warranty issues The performance contract must specify how warranty issues are to be resolved, whether a warranty
covers only exchange of defective equipment or also includes re-installation of replacement
equipment.
Spare parts Contract must specify whether existing spare parts may be used, and how additional ones should
management be procured and managed. Spare-parts tracking documentation may be required.
Battery replacement Maintenance contracts may optionally include one or more compulsory battery replacement/
disposal cycles; it may cover only labor, transport, and disposal, with batteries procured in a
separate contract.
Documentation These include: (i) preventive maintenance reports; (ii) callout logging and reporting; (iii) logging and
requirements tracking of equipment replacements; (iv) spare-parts tracking; (v) warranty claims tracking; (vi)
overall database of site-visit dates, whether preventive or callout; and (vii) system (including battery)
performance tracking.
Contract duration Desired duration of an initial maintenance performance contract is a minimum of 5 years, with
performance review every year. This covers electronic system warranties and any premature battery
failures and replacements under warranty.
Performance Maintenance performance contract standards may depend on the number of failures per system
standards years. Higher failure rates may require faster response and repair times. If too many system failures
occur, additional clauses may come into effect, requiring corrective action by the contractor.
Financial terms The financial terms and payment schedule should cover: (i) routine maintenance work schedule; (ii)
callout response performance and penalty accrual; (iii) battery replacement scheduling; (iv) warranty
terms and retentions; and (v) retentions and penalties for non-performance.
Source: Authors’ calculations, 2010.

OTHER SUSTAINABILITY ISSUES: LOAD Unfortunately, theft and vandalism occur and are often
CREEP, THEFT, AND VANDALISM associated with system failures. Hardware (e.g., fences and
special bolts) and other measures, such as recording serial
Increasing demands on the systems can stress the batteries numbers of panels and other components and, for large
and lead to system shutdowns, dissatisfaction with procurements, embedding a project or organizational logo
performance, and ultimately misuse and system failures. Two under the glass of the solar panel, may help as deterrents.
main contributors to load creep are increasing user demands In some situations, however, basic security is a risk due to
(e.g., more DVD watching or larger TVs) and agencies and conflicts or other reasons. The most promising strategy may
donors that provide equipment for additional or expanded be to strengthen community and staff awareness and roles in
services without taking into account the capacities of the PV- ways that align their interests with system sustainability and
based electricity supply. their perception as beneficiaries of the systems. Community
participation (e.g., via field surveys and consultations on
implementing responsibilities, such as maintenance-costs
contributions and system ownership) may be particularly
effective in helping to protect the systems.

52 | Photovoltaics for Community Service Facilities

 Part 6. Conclusion

Projects to electrify multiple off-grid community service Maintenance and Operation

facilities with PV systems have often been too lightly
prepared, have focused inadequately on the institutional • Establish robust maintenance arrangements for the
issues of maintenance, and have not been sufficiently project and, critically, post-project periods: Maintenance
supervised. The information available on experiences across continuity is the sine qua non of the sustainability of
countries indicates that overall sustainability is low. long-term operation. This includes securing funding for
battery replacements and other recurrent costs; clearly
To enhance sustainability, we have recommended measures identifying ownership responsibilities; building necessary
for many aspects of design and implementation. In capacities at each tier of maintenance; and installing
conclusion, we highlight best practices in three key areas: a reporting and tracking system to provide the data to
monitor the maintenance services, track performance of
Preparation the systems, and anticipate problems.

• During preparation, address both technical and Finally, we have proposed that project development
institutional requirements comprehensively, including be phased in four equally important stages: (i) rapid
post-project maintenance and recurrent funding. assessment; (ii) development of the PV implementation plan;
• Early on and throughout the planning process, (iii) procurements and contract management; and (iv) long-
incorporate internal loopbacks to consider trade-offs term operation. In closing, there are multiple opportunities
and facilitate the inputs of communities, PV experts, to address the issues covered in this guide and toolkit to
procurement specialists, and other stakeholders. establish the basis for sustainability.
• Include consultations with independent specialists to
take advantage of a wider body of experience and
expertise.

Contract Management and Supervision

of Installation and Maintenance

• Put in place robust, timely, intensive, independent,

and professional capacities for supervision. These
are absolutely essential at every operational stage.
They include technical support for vetting equipment
and installations and regular, repeated, in-the-field
monitoring and reviews of performance, whether done
under contracts or through various types of in-house
maintenance arrangements.

Photovoltaics for Community Service Facilities | 53

Abbreviations and Acronyms
AC alternating current
AFREA Africa Renewable Energy Access Program
AFTEG The World Bank Africa Energy Unit
AGM absorbed glass mat
CDM clean development mechanism
CEIF Clean Energy Investment Framework
CFL compact fluorescent light
CG Consultative Group
CIP carriage and insurance paid
DC direct current
DVD digital video disc
EPI expanded program on immunization
ESMAP Energy Sector Management Assistance Program
GIS geographic information system
ICB international competitive bidding
IEC International Electrotechnical Commission
JRC Joint Research Council
LCOE life-cycle costs of energy
LED light emitting diode
LPG liquefied petroleum gas
MDTF Multi Donor Trust Fund
NASA National Aeronautics and Space Administration
O&M operations and maintenance
OPD outpatient department
PSH peak sun hours
PV photovoltaic
PV GAP Photovoltaic Global Approval Program
PVGIS photovoltaic geographical information system
SBD standard bidding documents
SHS solar home system
SLI starting, lighting, and ignition
SSA Sub Saharan Africa
SSMP sustainable solar market packages
TOR terms of reference
TV television
UNDB United Nations Development Business
UNICEF United Nations Children’s Fund
UPS uninterruptible power supply
WHO World Health Organization
ZAMSIF Zambia Social Investment Fund

Units of Measure
Ah ampere-hour
CO2 carbon dioxide
kVA kilovolt-ampere
kWh kilowatt hour
kWp kilowatt peak
lm/W lumens per watt
m/s meters per second
MWp megawatt peak
V volt
Wh watt hour
Wp watt peak

54 | Photovoltaics for Community Service Facilities

Photovoltaics for Community Service Facilities | 55
 Africa Renewable Energy
Access Program (AFREA)

1818 H Street, N.W. 1818 H Street, N.W. 1818 H Street, N.W.

Washington DC 20433, USA Washington DC 20433, USA Washington DC 20433, USA
Internet: www.worldbank.org/afr/energy/afrea Internet: www.esmap.org Internet: www.worldbank.org/afr/energy
Email: [email protected] Email: [email protected] Email: [email protected]