Final Report Marketing Management Project (Solar Water Heaters)

Submitted by
Group 12 Section A Ashok Kumar Kirla (1211012) Jitin Jain (1211026) Nebu Thomas Mathew (1211040) Shantanu Vithaldas (1211054) Yatish Jain (1211068)

Under the guidance of: Prof. Mithileshwar Jha Indian Institute of Management Bangalore December 3rd, 2012

Final Report on Solar Water Heaters

Acknowledgement
We express our sincere gratitude to Prof. Mithileshwar Jha, Marketing Department, Indian Institute of Management Bangalore for his valuable help and encouragement rendered during the course of this project work. We are deeply indebted to Mr Rajat Sharma, Doctoral Candidate in Marketing, Indian Institute of Management Bangalore for his invaluable suggestions and ideas rendered during the preparation and execution of the project and the report. We express our sincere gratitude to the Administration and students of Indian Institute of Management Bangalore for the support extended during various phases of our project work. A word of thanks to the residents near Indian Institute of Management Bangalore for their timely help in successful completion of our project.

Final Report on Solar Water Heaters

EXECUTIVE SUMMARY
This report highlights the importance of solar water heaters in todays society, the user profile, the barriers and facilitators in this field and sums up by providing certain recommendations to further develop this industry using the concept of sustainable marketing. We took the help of both primary and secondary research for our analysis. Our primary research involved 2 surveys (which can be found in the appendix) one floated amongst the IIMB student community and one amongst various households across the city (including the IIMB faculty quarters). These surveys gauged the current perception about solar products and specifically solar water heaters. Based on the survey (student) results, we could conclude that students were more bothered about how cost effective the system would be rather than on environmental friendliness or any other factor. We also analysed the current market drivers for this industry. Rising urbanization coupled with increasing fuel costs, the various cost benefits offered and the climatic conditions were the major forces contributing to the growth of sales. Government regulations along with easy financing and subsidies also play a significant role in growing sales. However, there are many factors which act as potential barriers as well. Low product awareness along with a not-so-effective distribution system were cited as major factors. People also did not have an idea about the pricing of such products, thus they were unable to weigh off the costs vs. the benefits and hence determine the value added. To promote solar water heaters, we came up with some recommendations which if implemented might enhance the growth of this industry. In areas where solar water heaters are not totally feasible (hilly regions), we suggest a hybrid structure so that dual benefits (electric as well as solar) can be obtained by the user. Awareness schemes about government schemes regarding subsidies should be brought to the forefront as not many people are yet aware of this. Incentivising the channel partners is also a major factor which might help as it would make the distribution system much more effective. Lastly we feel that currently the product is being positioned only along the lines of environmental friendliness. As in todays world, people are always worried about the costs, we should also position solar water heaters along the lines of cost as they do have an inherent cost advantage. We see that solar water heaters can be the future of water heating if marketed and positioned in the right manner. If other states can emulate Karnataka and Maharashtra and make the installation of these products a must, we are taking a huge step towards building a sustainable environment.

Final Report on Solar Water Heaters

Table of Contents
1. 2. 3. Introduction .................................................................................................................................... 5 Objectives........................................................................................................................................ 5 Methodology................................................................................................................................... 6 3.1. Approach: Primary research ................................................................................................... 6 3.2. Approach 2: Secondary research ............................................................................................ 7 4. Industry Overview ........................................................................................................................... 7 4.1. Overview of Manufacturers .................................................................................................... 7 4.2. Customer Analysis ................................................................................................................... 7 4.2.1. 4.2.2. 4.2.3. User Profile...................................................................................................................... 8 Purchase Motives ............................................................................................................ 8 Products Used ................................................................................................................. 8

4.3. Current Market Drivers ........................................................................................................... 9 5. Analysis and Findings ...................................................................................................................... 9 5.1. Institutional Consumer IIM B .............................................................................................. 10 5.1.1 The solar water geysers ....................................................................................................... 10 5.1.2. The solar steam cooking system ......................................................................................... 10 5.1.3. Administration point of view .............................................................................................. 11 5.2. Cost Analysis for Residential Users ....................................................................................... 11 5.3. Online Survey Students IIM B ............................................................................................. 11 5.4. Private Consumer.................................................................................................................. 14 6. 7. 8. 9. Recommendations ........................................................................................................................ 15 Appendix ....................................................................................................................................... 18 Survey Questionnaire.................................................................................................................... 20 References .................................................................................................................................... 23

Final Report on Solar Water Heaters

1. Introduction
Sustainable products are those that provide environmental, social and economic benefits to the consumer and at the same time protect public health and environment (over their whole life cycle), from the extraction of raw materials stage to the disposal of finished products stage. They optimize the use of renewable or recycled source materials and are manufactured using clean production technologies and the best practices. Another major feature of such products is that they are sourced, manufactured, transported and recycled primarily using renewable energy. Solar energy, Wind energy, Organic farming, waste management practices and other eco-friendly sources/practices are the main components which contribute towards sustainable products. Solar energy products are amongst the most rapidly growing products in this domain. Solar energy or energy received from the sun is a massive source of energy mainly because it is freely available. After years of intense research, technology has made it possible for us to tap this form of energy. It has a myriad of uses Cooking, heating, space technology, lighting and communications to name a few. Sustainable marketing is the way forward for the products defined above. It is a much broader term as compared to green marketing. It involves the adoption of sustainable business practices that create better businesses, better relationships and a better world. It involves five key elements embedding sustainable business practices into the business strategy, delivering market activities that create ongoing growth, promoting sustainable businesses and helping them grow, influencing others to switch to such practices, minimising the resources/ reducing the waste in the day to day activities. The use of solar energy for heating water is one of the oldest and most mature renewable energy technologies. Solar water heaters have experienced a rapid growth in installations throughout the world. Globally, the industry has been growing at a CAGR of almost 15% annually with India accounting for 1.5% of the total installed capacity. The solar heaters market contributes Rs. 400 crore to the 1200 crore water heater market in India. Recently, several state governments have made it mandatory to use solar water heaters, thus driving sales. The Solar Thermal Federation of India is the national association of solar water heater manufacturers representing more than 20 companies all over India that together covers 85% of todays solar water heater market. The association aims to strengthen the performance of member companies, support industry growth and to work for the implementation of all steps to realise the high potential of solar water heaters. In this project, we will look at solar energy products, particularly solar heaters and how sustainable marketing applies to these products.

2. Objectives
The objective of the project is to study and gain an insight into the current market scenario for solar water heaters. The areas of study of the project are:5

Final Report on Solar Water Heaters

The emergence of solar water heater as a substitute to the regular electric water heaters and its relative performance (including effectiveness, efficiency and reach). The customer profile of this product, including their perceived benefits and motivation (Environmental awareness) What are the perceived barriers and facilitators for the growth of solar water heaters? What is the governments role in promoting the usage of solar water heater products? Evaluate the strategies that can be used by different marketers to market solar heaters to the different customer segments

3. Methodology
The project was carried out using two approaches: Primary research and Secondary research

3.1.

Approach: Primary research

As the scope of the project included both private and institutional consumers, different techniques were used to study the behaviour and preference of the consumers.

I.

Private Consumer: In order to understand the reason for purchasing a solar water heater amongst the private consumers segment, a door-to-door survey was conducted. The participants of the survey were households in Bilekahalli and the faculty of IIM B, who owned solar water heaters. The purpose of this survey was to collect information on: o Awareness of Eco friendly products o Reason for using solar water heaters o To gauge their perception about the pricing and distribution of solar water heaters o Satisfaction with the solar water heaters

II.

Institutional consumers : A study was conducted to analyze the merits/demerits of using solar water heaters in big institutions. The institution that we studied was Indian Institute of Management, Bangalore. The study here was divided into two phase: (i) Interviews with Administration of IIM B and (ii) Online survey filled by the students A. Interviews with Administration of IIM B : We had discussions with Hostel Office and the Electric Department of IIM B to understand : o Reasons for switching to solar water heaters

Final Report on Solar Water Heaters

o Maintenance of solar water heaters o Technicalities involved in the setting up the required infrastructure B. Online Survey by Students: In order to gauge the merits/demerits of usage of solar water heater in IIM B a survey was conducted amongst the students (as they are the consumers of the product). The purpose of this survey was to collect information on: o Awareness of Eco friendly products o Issues faced in using solar water heaters o Satisfaction with the solar water heaters

3.2.

Approach 2: Secondary research

Secondary research was mainly used to gain an insight into the solar water heating sector in India. The data analysed consisted of information on manufacturers, products, policies, barriers, customers and markets. This information was collected through literature survey as well as selected interviews with stakeholders and field visits.

4. Industry Overview
4.1. Overview of Manufacturers

In India mainly two technologies are used for solar water heater: Flat Plate Collector (FPC) and Evacuated Tube Collector (ETC). FPC based systems are of metallic type and have longer life as compared to ETC based system where tubes are made of glass which are of fragile in nature. ETC based systems are, therefore, cheaper than FPC based system. 67 of the flat plate collector Solar water heater Manufacturers are approved by Bureau of Indian Standard (BIS) and 102 Vacuum Tube based solar water heating systems Manufacturers/ Suppliers are approved by Ministry of New and Renewable Energy

4.2.

Customer Analysis

The market for the solar water heater is rising at a y-o-y growth rate of 15%. Currently the market for solar water heating devices is around Rs 400 Crores. The existing customers for solar water heater devices can be segmented and differentiated on various parameters. Three parameters that we have used are: 1) User profile: Residential/Institutional 2) Purchase motives 7

Final Report on Solar Water Heaters

3) Products used 4.2.1. User Profile

Various categories of customers using solar water heating devices based on their profiles are as follows: 1) Households 2) Institutions a) Colleges b) Hotels c) Hospitals d) Industries 1) Households: - Households use solar water heaters as a substitute to or as an addendum to the electric geysers. They use it normally for the domestic purposes like bathing, washing clothes etc. Both the primary and secondary search revealed that most of the households using solar water heaters belong to middle to high income group. 2) Institutions: - The institutional players like colleges, hostels, hospitals and industries represent an emerging market for the solar water heaters. Our surveys included institutions like IIM Bangalore and Central Silk board. They use the product for mass consumption. 4.2.2. Purchase Motives

The factors which influence the buying behaviour of consumers are as follows: 1) Environmental consciousness: These are the people who are highly motivated towards the sustainable and green way of living. The major driving force for them is motivation to save electricity. 2) Cost benefit: The major cost benefits which motivate people to purchase solar water heaters are: a) savings in form of electricity bills b) Low maintenance cost. 3) Legal requirements: These are the categories of people who have purchased and installed the solar water heaters just due to the legal requirements. For example, in various cities like Bangalore and Surat it is a legal requirement to install solar waters in newly constructed houses. 4) Social Image: Some of the consumers purchase solar water heaters just to enhance their social image by showing participation in Energy Saving Drives to be at par with their peers. 4.2.3. Products Used

Final Report on Solar Water Heaters

The consumers of the solar water heaters can be broadly divided into 2 groups based on the products they use. These are: Solar water geysers: These are the regular products and are bought by both residential and institutional buyers. Solar water steam generators: This system is used to produce very high pressure steam which can be used for mass consumption purposes like hostel mess.

4.3.

Current Market Drivers

The major forces driving the growth of sales of solar energy products, especially the solar water heater are as follows: Rising Urbanization and Increasing Fuel Costs: With increasing urbanization, the demand for electricity has gone up many folds. This coupled with rising electricity/fuel costs (on an average 7-10% p.a.) becomes a major driving force for the sale of renewable energy products like solar water heaters. Cost Benefits: The cost benefits offered are in two forms: a) Lower maintenance cost b) Saving in electricity bills c) The reduced system costs due to the increase in the demand volume Climate and Exposure to Sun: The climate of the location, which further determines the per year hot water requirement for the consumer is one of the major drivers for the sales of solar water heaters. Similarly availability of sunlight in a particular area is a major factor behind the effective operation of solar water heaters. Mandatory installations on upcoming constructions through Building Bye-laws, for example in Surat and Mumbai. Easy Financing and Subsidies on purchase: MNRE provides lot of incentives like 30% capital subsidy or loan at 5% for 80% of the cost for domestic and non commercial users. For commercial users apart from the above mentioned incentives they get the option of using accelerated depreciation on their products. Mandatory use by Pollution Control Boards in commercial sectors to avoid penalties.

5. Analysis and Findings

We have used our primary and secondary research to understand the consumer mind set (both institutional and residential customers) towards solar water heaters and its effectiveness.

Final Report on Solar Water Heaters

5.1.

Institutional Consumer IIM B

IIM B has a fully functional solar water heating system and the findings of the study of IIM B are as follows: The solar water heating system in IIM B can be classified into two parts: The solar water geyser The solar steam cooking system

Some of the key highlights regarding the above installed systems are: The solar geysers have brought down total electricity consumption of college by 20% Both the mess and hostel geysers are manufactured by TATA BP Solar However, the suppliers/dealers are different in both the cases. For the solar water geysers the entire set up was installed with the help of SV Marketing India Pvt. Ltd. And the project in kitchen is installed by Unisun Technologies Pvt. Ltd.

5.1.1 The solar water geysers Initially the water heating system in IIM Bangalore was based on Electric boiler system. The major problem associated with it was the huge energy consumption, high maintenance cost as well as the problems associated with Peak load time period. However, now the entire hostel block, the MDC block and the faculty block in IIM B has been covered under by the solar geyser network of the college. The solar geyser system is supplemented by the electric geyser system along with a thermal and time check system. The total installed capacity is around 31000 litres with total number of 249 collectors. The details about the same are given in the appendix.

5.1.2. The solar steam cooking system This system is established in order to supplement the normal LPG being used in the hostel mess. The system uses parabolic reflectors which capture the heat and is used to generate steam at 300-400 degrees Celsius with a pressure of 2-3 kgs. (Cooking requires only 1.5 kg of pressure). The system is good enough to supplement the cooking in the mess. The total cost of setting it up was around Rs 12 lakhs. The average saving from this initiative has been around 2 cylinders per day. So it gives it a payback period of around 3 years. It was set up almost 2 years back and there has been no major issue regarding it. The detailed analysis for the same is shown in the Appendix. 10

Final Report on Solar Water Heaters

5.1.3. Administration point of view The administration is very happy with both of their projects. According to Mr. Vasudeva M, Electrical Department both the projects have brought not only savings in terms of electricity consumption, these have also reduced the cost of maintenance. It is only once or sometimes twice a year that the college takes up the cleaning of the tanks and pipelines. The process is so simple that the college staff can do it themselves and we do not need any experts for it , were the words of Mr Vasudeva when asked about the complexity of cleaning process.

5.2.

Cost Analysis for Residential Users

A regular solar water heater with a capacity of 100 Litres is suitable for a household with 4-5 members. On an average the solar water heater can save around 1500 units of electricity under similar setup. The energy saved depends upon geographical location (i.e. the hot water requirements). So taking data for various regions below is the analysis about the savings in different parts of the country: Northern Region 200 Eastern Region 225 Southern Region 275 Western Region 250

Expected number of days of use of hot water per year Expected yearly saving in terms of 1000 1125 1375 1250 units of electricity Yearly Savings at Different Rates of Electricity/Unit (in Rs) Rs. 4/Kwh 4000 4500 5500 5000 Rs. 5/Kwh 5000 5625 6875 6250 Rs. 6/Kwh 6000 6750 8250 7500

So we see that the amount of savings achieved per household through the use of the solar water heaters is a function of the hot water requirement and the rate of electricity in a particular area. Therefore the amount of savings range from Rs 4000/- to Rs 8250/-. Similarly a 100 litre solar heater is equivalent to an oil fired boiler used in industries. There would be an annual savings of about 140 litres of diesel as well as reducing the green house emission in the atmosphere.

5.3.

Online Survey Students IIM B

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Final Report on Solar Water Heaters

We conducted an online survey amongst IIMB students to understand the consumer response on the effectiveness of solar water heaters. We got 94 responses on our survey and following were the key highlights: I. Performance of Solar Water Heater Vs Electric Water Heater

Almost one-third of the respondents agreed that solar water heaters are much more effective as compared to electric water heaters. Around 55% didnt find much difference between the two products. This indicates that solar water heaters compete effectively with other types of product in terms of performance delivery.

Perfomance: Electric vs Solar

13% Ineffective as compared to electric water heater Similar to electric water heater 55% Much more effective as compared to electric water heater

32%

II.

Awareness of Solar Water Heaters among Consumers

As per the data collected, students at IIMB have shown above average awareness of solar water heater products. Out of 94 responses, 36 consumers have fairly good awareness of the solar water heater products while 32 consumers exhibit average awareness of these products. Only, four said that they are not at all aware of these products.

Awareness of Solar Heaters

4.44 4.44 17.78 37.78 35.56 Fully Aware Fairly good Awareness Average Awareness Somewhat Aware No Aware

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III.

Willingness to spend on Solar Water Heaters:

Almost 70% of the respondents have agreed to pay 0-20% extra on solar water heaters which indicates that the value perceived by the consumers of solar water heaters is quite high as compared to electric water heaters.

Willingness to pay more

0 21% 9% Not willing to pay more 0-20% extra 70% 20-40% extra >40 extra

IV.

Parameters affecting purchase decision

More than 80% of the respondents have taken into account price, time taken for heating and electricity consumption as major factors affecting their decision to purchase a solar water heater. Interestingly, only 36% of the students took into account environment friendliness of the product while buying a water heater. Environment friendliness is still not a major factor for students in their decision to buy a water heater product.

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Parameters to Select Solar heater

100% 80% 60% 36% 40% 20% 0% Price Time taken Environment Maintenance Electricity for heating friendly cost consumption 53% 87% 89% 83%

V.

User Experience

As per the survey, more than 33% of the students have shown high satisfaction from solar water heaters on continuous and sufficient supply of hot water for students parameter. Majority of the students also agreed that maintenance issues do not significantly affect the overall performance. Refer to Appendix table 5.4 for the details.

5.4.

Private Consumer

We conducted a door to door survey amongst nearby residents to understand the consumer response towards solar water heaters. We got 24 responses and some of the key highlights of the survey are listed below: 50% of the respondents said that they will invest in solar water heaters because they are environment conscious while only 25% of them took cost of the product into account. Around 41% agreed that effectiveness of the product will also influence their purchase decision.

Parameter Environment Consciousness Effectiveness Cost

No. of Responses 12 10 6

% Respondents 50.00 41.67 25.00

Two- third of the respondents said that the distribution system is good for purchasing solar water heaters, though the brand awareness was on the lower side with only 33% of the 14

Final Report on Solar Water Heaters

respondents were aware of the different solar water heater brands. Interestingly, average no. of solar geysers/ household were 1.0 while average no. of electric geysers/ household were only 0.67.

Parameter Distribution System Good Brand Awareness Average No: solar geysers/ household Average No: Electric geysers/ household

No. of Responses 16 8 1.00 0.67

% Respondents 66.67 33.33

6. Recommendations
As we have seen from the above sections, there are few barriers which need to be addressed to ensure that the market of solar water heater grows at a rapid. The major stumbling blocks for solar water heater currently are: Low product awareness Ineffective market channels Lack of uniformity in regulations across the country

1) Promote Smarter Product Usage: As the market for solar water heater is segmented based on geography, we see that certain states have a much higher penetration as compared to others. We observed that hilly states of North India have a comparatively lower percentage of solar water heaters as compared to the rest. This can be attributed to the fact that solar water heaters turns slightly ineffective under foggy weather (where there is no access to direct sunlight). Thus we suggest that in such regions awareness should be created about the hybrid structure, where benefits of both solar and electric heaters are obtained. In such a case solar heaters heats up the water to a certain temperature (ex: 28o C) and the rest of the heating is done through a secondary unit which runs on electricity (because of lack of sunlight). 2) Increased Awareness: The consumer needs to be aware about both - the subsidies given by government as well as about the myths of high initial capital expenditure involved in the purchase of solar water heater. a) Subsidies/Benefits by Government: The government has rolled out many schemes to promote solar products, the most notable one being a 30% subsidy on solar water heating products, or a loan at 5% for 80% of the total cost.

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Final Report on Solar Water Heaters

However a major drawback of this scheme is that most of the people are not aware of it. Due to this lack of awareness the final consumers are not able to take advantage of it. Appropriate promotion should be given to this scheme so that the customer is aware of it. This will not only help in satisfying existing customers, but also help is generating new leads. b) Myths of High Capital Expenditure: One of the major barriers preventing the growth of solar water heaters segment is the high capital expenditure involved. Private/Public bodies like ESCO (Energy Service Company) are taking significant steps to eliminate such barriers and increase the penetration of solar water heaters. These agencies usually fund the purchase of the solar system and in return they get a percentage of the savings generated by using the solar heating system. The usual contracts last for five to twenty years. This scheme eliminates the fear of the middle class people, who have an inhibition against solar water due to the high initial cost involved. Also to look it from a different perspective, a regular electric geyser (35 Litres) costs around Rs 6000/-, and a standard solar heater with capacity of 50 and 100 litres cost around Rs 7000/- and Rs12000/-. So there is hardly any difference in the initial cost too. 3) Altering Promotion Strategy According to Different Market Segments: The pay-back period for solar water heaters (the timeframe during which savings made on the electricity will offset the cost of the solar water heater) varies across regions and sectors (based on their usage of hot water). If we segment the entire population based on this pay-back period, we can see that there is a clear distinction between the regions having a high and low pay-back period. Therefore the communication strategy has to be different for each of these segments. a) For the low pay-back period regions: The absolute time frame can be easily perceived by the customer. Hence generating a conviction to purchase such a product in these regions would not be a very difficult task. b) For high pay-back period regions: These customers are hesitant because they are not able to perceive the long run benefits. An informational appeal needs to be made to the consumers where the pay-back period is weighed off against the lifespan of the product. For example, a pay-back period of 5 years might seem very high for a customer but when weighed off against the 15-20 year lifespan of the product, it seems attractive. In addition, to this differentiated communication strategy, certain special benefits should be given to customers in these regions, at least in the initial periods, to spur rapid growth. 4) Uniformity of Regulations: Another major factor that significantly influences the sales of solar water heaters are the government regulations in that particular state. We see that in certain states like Karnataka and Maharashtra, there is a law which states that all new buildings which are coming up in the state would have to install solar heaters. This law was enforced in 2009 for the first time in the country. This has really boosted the sales of such products in these states and we can see that the penetration in these regions is more than 4-5 times that of other states. 16

Final Report on Solar Water Heaters

The need of the hour is to implement such schemes on a large scale across the nation. This would be one of the most effective ways through which large scale penetration can be achieved. 5) Improvement in the Marketing Channel: One major area of improvement is the marketing channel of solar water heaters. In many areas the marketing channel is not effective and the after sales service is poor. MNRE (Ministry of New and Renewable Energy) should take actions to incentivise the channel partners for improving the distribution network and hence the reach of solar water heaters. 6) Better Positioning of the Product: As seen above in the cost analysis of IIMB Solar heater as well as for the general residential solar water heater, using this product is always economical. However for most of the consumers it is positioned as only an environmental friendly product. The USP for the product while promoting it should be its cost effectiveness. So the product needs to be positioned as an economical product which is also eco-friendly. 7) Promotion through International Tie-ups: The government may also approach organizations having a worldwide presence to add credibility to their claims about solar geysers. A good example of such a tie-up is between the United Nations Development Team (UNDP) and the West Bengal Green Energy Development Corporation (WBGEDC). The UN has already sanctioned Rs. 10 lakhs for awareness programs across the city and has ensured that 2 factory units be set up to manufacture solar water heaters. If the state bodies can approach such organizations whose name and stature appeal to the masses, the problem of product awareness would not be as large as it is today.

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7. Appendix
Table 5.1: Block wise details of Solar Water Heating System at IIM B Details of Solar Water Heating System Location Capacity -Hrs No. of Collectors No: of coils Hostel Block A 1000 8 2 Hostel Block B 1000 8 2 Hostel Block C 1000 8 2 Hostel Block D 1000 8 2 Hostel Block E 1000 8 2 Hostel Block F 1000 8 2 Hostel Block G 1000 8 2 Hostel Block H 1000 8 2 Hostel Block I 1000 8 2 Hostel Block J 1000 8 2 Hostel Block K 2000 16 2 Hostel Block L 2000 16 2 Hostel Block M 3000 24 6 Hostel Block N 3000 24 6 Hostel Block P 3000 24 6 MDC-A1 1000 8 3 MDC-A2 1000 8 3 MDC-A3 1500 X 2 24 3 MDC-Kitchen 1000 8 3 Hostel Mess 500 5 2 Executive Block 1500 12 2 Total 31000 249 58

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Table 5.2: Details of Solar steam cooking system consumption for IIM B Solar steam Cooking system for IIMB Hostel Description Total Consumption/Month in KGs Percentage of LPG used of steam cookers LPG saving/Month due to Solar cookers Percentage of LPG saving/Month Effective Steam generation from solar, days/year Total LPG savings per year Cost savings / year (1Kg-40Rs) Total cost of project in Rs MNRE subsidy Payback with subsidy in years Area required for installation of dishes in Sq FT Total load of the system in Kgs Details 2656 30% 570 25% 250 4750 190000 1100000 480000 3.3 2000 3000

Table 5.3: Details of Subsidy given to IIM B for using Solar heating system Subsidy details Subsidy offered / Sq meter of dish area installed Area/Dish Sq meter Total number of dishes Total Dish area Sq meters Total subsidy amount

5000 16 6 96 480000

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Table 5.4: User experience of Solar Water Heaters of IIMB Students

S.No: Question Very Satisfied 36 Somewhat Neutral Somewhat Satisfied Dissatisfied 30 10 16 Very No. of Dissatisfied Responses 2 94

Continuous supply of hot water Sufficient hot water for all the students Disruption due to maintenance issues

42

30

12

94

24

20

38

10

94

8. Survey Questionnaire

Questionnaire for Residents/ Users of solar water heaters

1) Area of Residence of the responder: ____________________ 2) What is the Family Size/ Number of members in the household? a) 4=< b) 4-6 c) <=6 3) Do you know about the availability of Sustainable/Eco Friendly Energy products or services in market? If yes which? a) b) c) d) Rain water harvesting CFL bulbs Solar panels Others (please specify):_______________

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4) What is your approximate water consumption per day (assume 10 litres of water per bucket/30 litres of water per shower) a) <10 litres b) 10 - 30 litres c) 30 - 50 litres d) 50 - 75 litres e) 75 - 100 litres f) 100+ litres 5) Do you use a geyser? If yes, then which? a) Electric b) Gas c) Solar 5.1) How many geysers do you own? ____________

6) What prompted you to invest in solar water heaters? If you do not have a solar water heater then what would make you buy one? a) Advice from friends b) Environment Consciousness c) Effectiveness of Geysers d) Legal requirements e) Social Image 7) Rate the following parameters on a scale of 1-5: a) Distribution System b) Pricing of the product c) Advertisement/ product awareness 8) How satisfactory has been the product performance? Rate following on scale of 1-5 a) Water heating b) Value for money c) Repair & maintenance 9) Did you have some specific brand or standardization (ISI or something else) in mind before purchasing the solar geyser? 10) Will you recommend your friends/ relatives to make a similar investment? a) Yes b) No

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Questionnaire for Students of IIM B

1. On a scale of 1-5, rate your awareness on green products (solar, wind and other renewable sources of energy):____________ 2. What do you think about the performance about solar waters compared to electric water heaters? a) Ineffective as compared to solar water heater b) Similar to solar water heater c) Much more effective as compared to solar water heater 3. What are the parameters you would look for while deciding to buy a water heater a) Price b) Time taken for heating c) Environment friendly d) Maintenance cost e) Electricity consumption 4. How much more are you willing to pay for solar water heater compared to electric water heater (25L Rs5600) a) Not willing to pay more b) 0-20% c) 20-40% d) 40-60% e) >60% 5. What would be your main incentive while buying a solar water heater? a) Low maintenance cost b) Save money on your electric bill. c) Environmental friendly 6. What do you think is the life of a solar water heater? a) <5 yrs b) 5-10 yrs c) 10-15yrs d) 15-20yrs e) >20yrs 7. Are you aware of the solar water heater brands available in India? If yes, which are they?

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Final Report on Solar Water Heaters

9. References
http://www.solarwaterheater.gov.in/ http://www.mnre.gov.in/ http://www.gkspl.in/ http://www.stfi.org.in/objectives.php http://www.eai.in/blog/2010/07/solar-water-heaters-is-a-120-crore-market-in-india.html http://mnre.gov.in/file-manager/UserFiles/greentech_SWH_MarketAssessment_report.pdf http://www.eai.in/club/users/dheen/blogs/665 http://www.chillibreeze.com/articles_various/indian-renewable-energy-market-412.asp http://greencleanguide.com/2011/04/12/booming-solar-energy-market-in-india/ http://www.rncos.com/Report/IM187.htm http://mnre.gov.in/file-manager/UserFiles/faq_swh.pdf http://www.energynext.in/lack-awareness-biggest-challenge/?doing_wp_cron=1354435429 http://www.indiasolar.com/survey-swh.htm http://www.indiasolar.com/swhinfo.htm http://articles.timesofindia.indiatimes.com/2012-06-14/chennai/32234971_1_solar-water-waterheater-solar-energy http://www.solarthermalworld.org/content/final-report-market-assessment-solar-water-heatingsystems-industrial-sectors-2011 http://www.stfi.org.in/index.php http://www.csb.gov.in/about-us/ http://www.kamalsolar.com/ http://www.teriin.org/ResUpdate/reep/ch_9.pdf http://kredl.kar.nic.in/SolarThermal.htm http://www.solarwaterheater.gov.in/page.php?pid=22 http://www.gkspl.in/GKSPL_SWH_Market_Assessment_Final_Report.pdf

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