Bringing solar home systems to rural El Salvador: lessons for small NGOs

This paper presents the results of case studies examining two independent projects that worked to bring solar home systems (SHSs) to isolated communities in El Salvador. Both projects were implemented by small nongovernmental organizations (NGOs) that did not have prior experience with SHSs. One project was market-based: families were given the opportunity to purchase the systems at going prices. The other was donor-based: residents were provided the equipment in return for their agreement to cooperate in local environmental protection efforts. Results of a comparative analysis support several conclusions. (1) For small NGOs, the promotion of markets is appealing because of the potential for financial sustainability; yet a reliance on markets may also heighten complexity and increase opportunities for failure. (2) In implementation of market-based projects, all stakeholders, including potential consumers, private-sector service providers, and the staff of NGOs acting as project managers, will face pressures to modify and adapt their attitudes and behaviors. (3) Alternative models for small-scale projects that integrate market-based and donor-based design features deserve consideration.