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By Anil Cabraal, Mac Cosgrove-Davies, Loretta Schaeffer

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Additional resources for Best Practices for Photovoltaic Household Electrification Programs: Lessons from Experiences in Selected Countries (World Bank Technical Paper)

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2 Photovoltaic systems are already used in a broad array of rural energy applications. They provide households and small businesses with services such as lighting, refrigeration, and entertainment; they are used to pump water for agricultural purposes; to deliver public services, including health care, water purification, and street lighting and to power remote telecommunications facilities (Shepperd and Richard 1993). PV systems are modular. They can thus serve loads ranging in size from milliwatt (for instance, a pocket calculator) to megawatt (for bulk power supply).

At the same time, subsidies for rural grid service or for kerosene often lower the cost of competing energy options to well below their economic value. While subsidies may be justified for social or developmental objectives, they can create serious distortions that hinder household PV use in areas where PV is clearly the least-cost economic option. Page xiii Establishing Responsive and Sustainable Infrastructure 9. Institutional Structure. No single institutional arrangement is appropriate for every country.

For example, evidence suggests that consumer willingness and capacity to pay is influenced more by the size of the down payment for solar home systems than by the number or the size of the monthly payments. Flexible payment schemes may be needed for households with irregular income streams. 7. Grants and Subsidies. A judicious use of grants and subsidies can help implement household PV programs. To assure sustainable programs, such assistance should be used to build market infrastructure through planning, promotion, training, feasibility studies, quality assurance, and similar activities, or limited equity to reduce the capital costs of a project.

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Best Practices for Photovoltaic Household Electrification Programs: Lessons from Experiences in Selected Countries (World Bank Technical Paper) by Anil Cabraal, Mac Cosgrove-Davies, Loretta Schaeffer

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