Filling the landscape with Solar Utility Nodes.
Open sourcing the solution of small scale electrification.

Monday, May 13, 2013

Adding it Up: is the node a valuable investment?

As we approach our departure date, we've solidified the components and the construction of the node, such that we can begin to get an accurate cost per node to build one of our power nodes.  In the picture below, you can see a list of our required inventory (not accounting for spare materials, of which we're planning on bringing extras for each component of the circuit).  The majority of these materials we purchased, although some we acquired for free from the prototyping electrical and computer engineering lab that we've been working out of at Duke.



In calculating the cost of the node, we have made the assumption that the discount from buying the components that we bought in smaller amounts in bulk would account for the difference in having to buy the components we used from the lab, so it evens out such that the amount we spent for parts of nodes is a pretty good projection for the cost of a single node.  This is the case because almost all of our individual components have massive reductions in price for bulk orders and also carry a shipping fee (basically independent of order size) that is the majority of the cost.  Mass ordering, if this node ever went into mass production, would see much cheaper components than we have.  All in all, the total spent per node is $383.

Obviously this is a huge charge for any Ugandan citizen or organization for that matter to bear, and taking out microfinancing loans on such a huge amount is an intimidating step.  To a family investing in such a device, the failure of the device to either work or produce a profit can result in crippling debt.  However, looking at the demand for phone charging and considering the normal household budget allocated to charging, it's easy to see where profit can be had.

5.5 million Ugandan households are off-grid and don't have access to conventional electricity sources.  With a high and ever-increasing spread of cell phone usage and ownership, there's a clear disparity, the one which we obviously have been working to meet.  According to a Kenyan newspaper's recent article (The East African's Rising mobile use fuels demand for solar devices), on average a cell phone charge can range from ten cents to three dollars, for a total monthly budget of over $10 for cell phone users to charge their phones.  In any given village, residents would choose to charge their phones at the closest possible location as opposed to incurring travel fees as well, so the device we install would see a fair amount of use.  If you estimate at even ten patrons to the charging device per month, an operator could recoup $100 within the month.  Adding in the other advantages associated with the node (provision of light, eliminating the cost of batteries for flashlights, or oil for lamps) the benefits clearly rise.

It's still a huge investment if we reach the point that these devices are being sold, and some costs (i.e.: the battery, the solar panel, the solar charge controller) are pretty fixed and create a high minimum cost for the system.  However, the guarantee of payoff (be it in streamlining/lowering costs of personal energy use or actually turning a profit) can ensure investment and usage.  

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