Today, solar street lights have become the lighting sources being mostly used for outdoor lightings. Solar energy is the solar street lights’ primary energy source. Photovoltaic panels, which always placed on the integrated poles, power the street lights. Since the demand for continuous power and lighting has increased in urban and rural areas, the prospect for the solar street lighting market has drastically expanded. Some aspects, for instance, technological innovations in terms of the street lighting design, has brought about a reduction in the components of street lighting; hence, making them an appealing alternative to traditional street lights.
Solar Street Lighting Market Outlook
In several reports, the section of the market outlook is known for mainly encompassing the most important aspects of the market, which incorporate challenges, opportunities, drivers, and restraints being faced by solar lighting companies. Restraints and drivers are assumed to be the essential factors. On the other hand, about the market, challenges and opportunities are assumed to be extrinsic factors.
Since several governments are encouraging their citizen to consider installing solar street light, whose market has been expanding. This factor, together with the environmentally friendly and cost nature of various solar street lighting systems, has been driving the market. High maintenance needed for the running of the solar street lights, together with the expensive initial investment needed have been restraining the market.
Factors Affecting Solar Street Lighting Market’s Size and Forecast
The size and the forecast of the solar street light market are generally affected by the following factors:
Consumer education is among the top factors facing solar street lights’ penetration into the market. It is important to consider raising the level of awareness of the target market through stating the available options, their benefits, together with the hazards associated with the use of more dangerous sources of energies to light people’s homes. It is believed, in the energy sector, that the insufficient entrepreneurial skills, as well as entrepreneurial capacity, are key things that limit the marketing of solar street lighting products.
If the awareness of solar street lighting products has been affected by spoilage, it becomes very difficult for solar street light companies to thrive in the market. Market spoilage is likely to be experienced where there are no substandard products and services in the market. Moreover, low-quality lighting products, in as much as they are cheap, have been increasing the difficulties of market penetration since consumers do not trust the quality and technology. In other words, if consumers get appropriate awareness, it becomes easier for more people to trust solar street lighting products; hence, increasing the size and forecast of the market.
Affordability or Access to Finance
Affordability affects the penetration of the solar street lighting market in most parts of the world. Limited financing alternatives can be felt on different distribution value chain levels, from the manufacturers to dealers, distributors, importers, and even users. The fact that there is no detailed information regarding the solar lighting industry, foreign direct investors have been facing a serious impediment. Also, the risk elements for the investors are always raised by the limited awareness of its market trends, together with the return rates as well as the political instability related fears.
This is assumed to be the prevalent conditions in the areas or countries supporting the growth of the solar energy industry. The enabling environment is all about the roles of the national governments, and those of regulatory bodies. The business model viability of a nation can be gauged using national policies. In some parts of the worlds, like the United States and Europe, some solar energy projects managed to penetrate the market because there are tax breaks, subsidies, and some supportive policies in place. Because of governments cutting back on subsidies, some companies cannot thrive in the solar street lighting market.
Technical Support Services
In the proximity of the consumers, having available technical assistance is an important factor as far as countering the solar street lighting market’s effects is concerned. If there is a technician who is proficient in repair, maintenance, and troubleshooting of the solar street lights, the customers’ trust will increase. Because of the novelty of some solar energy products, there is a need for developing local maintenance capacities in areas where solar street lighting products are being sold and marketed. However, low buying power in some areas makes it difficult for some manufacturers to establish service centers.
For the issues affecting the size and forecast of the solar street lighting market to be solved, there is a need for developing innovative approaches. It is only through this that there will be increased penetration of solar street lighting products. Moreover, Dell Illumination has what it takes to ensure that you thrive in the market.