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Comment by abbasmehdi | Hacker News Reader

Hey good luck. I am from the same part of the world and agree 100%. I should point out though that there is widespread use of UPS and generators. Not sure if people will go completely off the grid, but initially you are definitely a 'cheaper generator', if cheaper. Like you said its a cash-based economy, and people don't like to put a lot of money up front even if it means savings in the long run, so how will you combat the high initial investment? I do think this is the viable solution. Also you should look into transmission losses. I have heard power lines there are between 30% and 50% lossy.

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Thanks, all really good points. Initially I'll be targeting the high end residential and commercial market to get cash flow going and sustain the business. Residents in major cities such as Karachi, Lahore, and Islamabad purchase their houses for US$500k+ with cash. The goal is to sell them on solar electric systems ranging from US$5k to 15k with the promise they can completely or mostly eliminate their electric bills, and get their ROI in 5-7 years while getting uninterrupted electricity for 25 years. The market is ripe and I have seen residential installations worth US$35k with upfront cash.

Generators and UPS are current alternatives. However Generators, very loud and expensive to purchase, are dependent on fossil fuel (dirty) prices, which are very low at the moment but fluctuate routinely. UPS devices produce square wave outputs that damage appliances permanently. Convincing the market to go solar instead because of these reasons is the eventual sales challenge for sure.

Transmission losses (including electricity theft) are part of the sales pitch. They are a big reason why Supply doesn't meet Demand and Load Shedding has to be enforced.

I would focus on incremental systems. Something like 10$ cellphone, 100$ for lighting, 1,000$ for PC, 10,000$ for AC.

Also, midrange UPS don't output square wave, I fact solar systems include a UPS for night time power. So, you could sell a ~3k, UPS system with bult in solar hookups where people can add pannels over time.

Thanks and completely agree. I'm going back home with an open mind. There's lots I will learn on the ground and will fine tune my approach according to the realities. I reckon Energy Efficiency will also play a big part in my approach down the road. Wanted to initially target a high end market segment with the least barriers to entry.

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