Innovative solar business models with Brave Mhonie (SunnyMoney / SolarAid)

Jan 22, 2021

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In this conversation, we speak with Brave Mhonie, General Manager of SunnyMoney in Malawi. SunnyMoney is the largest seller and distributor of solar lights in Africa, and is a social enterprise owned by SolarAid, an international UK-based charity.

We speak about their business model innovations to enable Sunny Money to grow sales in a sustainable and profitable way; how SolarAid and SunnyMoney work together to innovate entrepreneurship in rural, remote locations, and the importance of education and SunnyMoney’s partnership with schools, teachers and the Ministry of Eduction in Malawi. We also speak about how the solar industry has changed in the past decade and how the promise and potential for clean energy shifted Brave's aspirations to work as a medical doctor, to having now worked over 10 years in the solar industry.

Visit us at www.distributingsolar.com

Show notes:

(1:00) Introduction to Sunny Money; SolarAid's founding by Jeremy Leggett, focusing on trade rather than aid

(3:20) Sunny Money's approach to innovative business model and the evolution of go-to-market strategy; initial focus on pico solar and solar lights; how the industry has changed in the past 10 years enabling businesses to focus on distribution

(5:00) Their focus on seeding solar businesses in local areas, receiving investment from local businessmen to expand their reach across Malawi, providing working capital for SunnyMoney who continues to manage the business; a financing innovation for local businesses

(6:00) SolarAid's partial subsidy to provide a cushion for the costs to reach a remote customer; how to get a substantial presence in a rural community; operational expenses which are partially covered by SolarAid

(12:00) Customer engagement model; an initial deposit paid by customer; sales representatives act as area agents to manage cash collections, after-sales services, payment management

(14:00) Mobile money's role; supported business, however some areas where mobile money is not available. The continued need to manage debt; the difficulty of managing payments during seasons when customers focus on buying farming materials

(16:00) Overview of the solar industry in Malawi over the past 10 years: growing customer awareness and interest in larger systems; government's role in supporting the sector, removing VAT and various taxes

(17:00) The government's potential to help with consumer education, making consumers aware of other affordable energy solutions; the potential for government infrastructure development

(19:00) Diesel genset, batteries as alternative energy sources; dry cell powered torches

(21:00) Brave's route into Sunny Money, initially wanting to work as a medical doctor, and seeing the potential to improve health with solar power

(24:00) Challenges of managing people, importing goods, financing assets; it's a new sector so there are many challenges

(25:00) SolarAid support in funding; Developing financing business co-operatives with Global Distributor's Collective

(27:00) Surprised by the government's interest in combating energy poverty

(29:00) How they decide to expand: looking at income levels, population density, support and existing infrastructure and organisations that can help them

(30:00) Their partnership with the Ministry of Education; using teachers' development centers as distribution points

(34:00) Working with SunnyMoney in other countries

(36:00) Advice: Be patient and keep innovating!

(37:00) Inspiring figures: Jeremy Leggett and the person who introduced him to solar in the first place

(38:00) Recommended books: Blue Ocean Strategy

(39:00) Predictions: the off-grid solar sector will grow very quickly, with growing demand for investments