Companies
predict that solar-powered lamps made up of LED lighting will soon be the
leading gadgets for poor countries around the world. Solar-powered lamps are
critical for these people: it reduces the use of expensive and dangerous
kerosene lamps, which release toxic fumes producing carbon-dioxide emissions
and are fire hazards. However, manufacturing these lamps are not as easy and
cheap as they appear to be; the general concepts and technology of the lamps
exist, but constructing and selling the lamps is another story. But finally,
with new business models evolving and the use of cheaper materials, the prices
for these modern solar-powered lamps are gradually falling. The article
“Lighting the Way” in the magazine The Economist
is convincing and extremely detailed, as it presents both the technological and
business aspect to such a simple product that could potentially change the
lives for millions of people.
The
article explains the various uses of technology used to create these
solar-powered lamps, and the different designs and models produced for the
customers. The article explains how there will be “more emphasis on styling and
appealing to younger customers,” which apparently, seems necessary for poor
countries (Economist). The fact that companies are even worried about the style
of these lamps completely surprises me because I would assume that was last on
the list of concerns. Although the design can affect marketing and overall
profit for a product, I feel as though whether these solar-powered lights come
fully detailed with a bright yellow sunflower or without, it will not make a
difference for the people in desperate need for a lamp at night. If anything,
it just makes the product more expensive. With competitive companies in this
market, I believe that people will compromise on efficiency for a cheaper cost.
Although the designs are creative and will appeal and attract customers, in
reality, these people just need light.
The
article also explains the use of mobile money and other flexible payment
systems in which they could “vary the size of payments depending on their
cashflow” (Economist). I think this is a great idea for these poor countries
because this means they will not have to make expensive payments upfront, but
instead they can pay off loans, or pay as they use the lamps, depending on the
company. Some companies will even offer these payment systems as a way to
create credit history.
There
is another product known as the Smart meters, which is a competitive product
for the LED solar-powered lamps. The Smart meters are electricity meters that
record the use of electricity in each home. On the Smart meter website, a
report was made that these meters will “create a revolution in the South
African power market” because it will allow utility companies to “establish
rates based on the time of day the power is consumed,” that way people can
control how much money they pay for their electricity (Smart meters). With the
use of electricity spreading gradually throughout these poor countries, the use
of solar-powered lamps may potentially become obsolete in the future. Time will
only tell though if these developing countries will actually develop. Right now
though, the solar-powered lamps are the best option for people who just need to
do simple tasks at night.
Sources
Main Article:
The Economist, magazine.
“Lighting the way” p. 14-16
http://www.smartmeters.com/the-news/812-smart-meters-impact-south-africa.html
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