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INTERNATION MARKETING

MARKETING ANALYSIS FOR SOLAR ENERGY


THIS REPORT DONE BY:
Tameem ALZOABI

TABLE OF CONTENTS
Introduction................................................................................................................................... 2 Renewable energy sources Growth............................................................................................ 2 PESTEL ANALYSIS ...................................................................................................................... 3
Political .................................................................................................................................................... 4 Economic ................................................................................................................................................. 4 Social ........................................................................................................................................................ 5 Environmental ......................................................................................................................................... 5 Technology .............................................................................................................................................. 5 Legal ......................................................................................................................................................... 5

JORDAN ........................................................................................................................................ 5 globalization of solar energy ....................................................................................................... 6 solar energy Barriers and challenges ........................................................................................ 7 Solar Energy opportunities ......................................................................................................... 7 Marketing entry and development .............................................................................................. 8 4PS ANALYSIS.............................................................................................................................. 8 SWOT Analysis ............................................................................................................................. 9 Segmentation:............................................................................................................................. 10 Conclusion .................................................................................................................................. 10 Bibliography................................................................................................................................ 11 Appendix: .................................................................................................................................... 12 Politic actions ............................................................................................................................. 12 Supporting data: ......................................................................................................................... 12 The Advantages of Solar Energy vs. Other Renewable Energy Sources ............................. 15 Marketing Mix to create a marketing plan ................................................................................ 15

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INTRODUCTION
The future will be shaped not only by competitive economic growth or the potentially disruptive scarcities and the consequences of human induced climate change, but also the question whether the world has enough energy resources to fuel continued economic growth and industrialization. Solar energy has growth in recent years due to both technological improvements, cost reductions and policies supportive of renewable energy development and utilization. The solar energy market can be attributed to a number of supportive policy instruments, the increased volatility of fossil fuel prices and the environmental externalities of fossil fuels, and particularly greenhouse gas (GHG) emissions. Theoretically, solar energy has resource potential that far exceeds the entire global energy demand. This report analyzes marketing of solar energy development; Address the key barriers that prevent deployment of solar energy. There are two ways to generate electricity from solar energy: Photovoltaic (PV) and the Concentrated Solar Power (CSP) technology. PV technology is considered to be the most efficient way to generate electricity in a decentralized manner. Solar systems is also called solar energy system, it mainly consist of solar panels, solar charge controllers and solar inverter. In some other solar systems battery are also used.

FIGURE 1 SOLAR POWER SYSTEM SETUP

RENEWABLE ENERGY SOURCES GROWTH


Nowadays, most of countries are in development phases try to still ahead in technology, life style, politics and economy. Lot are making great efforts to develop their own sources of energy and try to find a new renewable resources, lot of development made to meet the energy demands of the country growth, expansion in the infrastructures and industrial applications, along with the increase of population. In spite of, few countries considered of the top rich with fossil fuel sources, such as oil and natural gas, still it has a huge potentials of renewables energy such as Solar, Wind and other alternative power sources. The need for new energy sources is getting urgent; with the rapid increase of oil prices (Figure 2) the renewable energy development is moving fast. In addition, new policies and agreements to make greater use of these renewable energy sources.

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FIGURE 2 OIL PRICE 2000-2020

FIGURE 3 WORLDWIDE INSTALLED SOLAR CAPACITIES 2000-2020

PESTEL ANALYSIS
This section analyzes the political, economic, social and technological, environmental and legal structure in general, and in some cases will specify Jordan as a focused market. Those factors have profound impact on International Marketing. Each of the factors will be analyzed with respect to solar energy sector and will explore current strengths, current challenges, future prospects and future challenges.

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Political Political responses to the world energy needs have included new policies, legislature, and tax incentives promoting the growth of and investment in renewable energy in order to reduce green house gas emissions. Tax credit and incentives strengthen the ability of renewable energy companies to be successful by cutting the costs of operations. Governments start driving the renewable energy development forward by providing research funding and creating incentives for the companies to make necessary, capital intense, long-term investments. The government of Jordan now looking in to new energy strategy that will aim to reduce Jordans dependence on imported oil and gas to generate power and electricity. The latest government of Jordan had removal of subsidies on petroleum products, and removed all TAXs on all renewable energy products by Nov. 2012. Econom ic Solar energy has a positive impact in not only the solar economy, but on the national economies of countries as well. This source on energy will decrease the use of imported oil as an energy source Solar energy already has a tremendous effect on the world economy. This sources got benefits on economy, directly and indirectly. It reduce homes use of traditional energy sources, help keep natural ecosystems intact, reduce tax payer and potentially devastating oil spills like the recent BP disaster along the US Gulf Coast. Domestically, the US market for PV is expected to be around $27 billion dollars by 2020 according to the Department of Energy, and directly indirectly create 150,000 new jobs. Practically speaking, solar energy also allows countries without a grid infrastructure to power isolated areas, and individuals to power their own home independently, constantly receiving a free source of energy from the sun, if the photovoltaic solar panels generate more energy than the home users, can be sell back energy to local utility company.

FIGURE 4 PHOTOVOLTAIC COST AND EFFICIENCY

Solar panels manufacturing price has dropped since 1980s, with increasing in efficiency ( Figure 4). Those panels can be considered in countries with large in non-arable land such as deserts, like Pakistan, India, China, Africa, and Middle East.

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Social Comfort as the user feels more comfort by finding hot water/electricity available all day long. Solar energy is a global energy resource conserved and not wasted. In addition that it is safety to produce energy safer than electricity, burning, fuels, no risk of dangerous hazards. It is has sustainability, will never run out. Health; no dangerous waste dumped to the environment keeping it clear and green. And sure it's a wealth solution for saving money. Environm ental If current trends of burning oil and coal continue, the global temperature could climb so high, with air and water poisoning. Research has shown that with current technology, renewable energy sources like solar can provide almost primary energy demand. On the other hand, solar energy requires only a one-time production of equipment, it rates far lower in environmental damage than other energy production types. Again, solar energy has no by-productions, no substantial raw material consumption aside from initial construction of panels and little waste material. In fact, even after 25 or 50 years, when the solar panels fail, they can still be recycled to another new solar panels. Technology The technological innovation of solar energy enables solar panels to capture the heat of the sun and utilize the energy to generate power and electricity for homes, buildings and cities. Solar panels help maximize the earth's resources and conserve energy. Legal A number of federal laws, regulations, and Executive Orders apply to solar energy development activities worldwide. For the most part, state laws and regulations do not apply to solar energy development. Jordan has taken steps for development of its solar resources, Renewable Energy & Energy Efficiency Law in 2010. This law allows local companies to work directly with the Ministry of Energy to develop new projects. Were the national electric power company will be obligated to purchase any and all electricity produced by renewable energy power plants and cover the cost of connecting renewable energy projects to the national grid. As well as small-scale renewable energy projects are able to sell excess electricity back to the grid at retail value. In addition, many of the laws provisions benefit large-scale renewable energy projects. The government has been in consultation with advisors and the private sector concerning provisions to support small-scale projects.

JORDAN
Jordan faces challenges in the energy sector, Since the Iraq invasion of 2003, Iraq stop providing oil with the preferential prices, now after the Arab spring, Jordan buys the oil from international market at a 60% higher than it was buying. In addition to gas crises with main supplier (Egypt), that led to stop pumping gas to Jordan. The rising demand due to population growth, Jordan imports 96 percent of its oil and gas, which accounts for almost 20 percent of the Countrys Gross Domestic Product (GDP).

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Natural Gas, 36%

2008

Imported Electricity, 2%

Renewable Energy, 2% Imported Electricity, 1% Natural Gas, 29% Renewable Energy, 10%
FIGURE 5 JORDAN ENERGY RESOURCES

Oil, 60%

2020 Shale, Oil


14% Nuclear Power, 6%

Oil, 40%

FIGURE 6 JORDAN ENERGY DEMAND

GLOBALIZATION OF SOLAR ENERGY


Globalization of the energy market is deepening and broadening through international trade as well as through cross-investments, deregulation of domestic markets, and industrial restructuring that links the older energy industries to the new global political economy. This transformation of energy industries and markets can be seen around the world and offers great potential in terms of economic efficiency, technology development and consumer choice. As Its well known that energy is the key constraint to the world's development and economic growth and with oil-increasing prices, air pollution, environmental degradation, acid rain and global warming, all are leading to energy crises. Solar energy will play a substantial role helping to meet energy demand and to keep earth healthy. Tameem ALZOABI

Knowing that energy trade is biggest business, made above reasons significant driver of energy globalization, with a technology developing rapidly, solar energy driven to globalize, as any other source of energy.

SOLAR ENERGY BARRIERS AND CHALLENGES


The barriers in general are rather, related to what can broadly be called implementation. Specifically, they include: High costs: Solar photovoltaic (PV) and concentrating solar power (CSP) generating plants, has setup and installation costs significantly higher than other renewable resources. Infrastructure: its required a large size land to be flat (Gradient), and proximity to evacuation and accessibility. Variability/intermittency: The sun is variable resource, meaning that its availability as an energy source fluctuates due to weather patterns, clouds, and cycles of day and night. The electricity output from power plants dependent on these variable resources varies accordingly. The demand for electricity, however, does not follow the same pattern. The size and application of the system. In general, the larger the system, the lower the per-kilowatt and per-kilowatt-hour cost. Technology used. There are several different types of PV cells, and each has different costs and performance characteristics.

There are other barriers as well, including siting and permitting challenges for the solar power plants themselves and for the transmission lines that connect them to the grid, higher perceived technical risk, high ratio of capital to operating costs, and policy uncertainty. However, the barriers noted abovehigher costs, the need for new transmission capacity, and variability of outputare currently the most significant.

SOLAR ENERGY OPPORTUNITIES


Jordan has major plans for increasing the use of solar energy. As per the Energy Master Plan, 60 percent of all households are expected to be equipped with solar water heating system by the year 2020. The Government is hoping to construct the first Concentrated Solar Power (CSP) demonstration project in the short to medium term and is considering Aqaba and the southeastern region for this purpose. It is also planning to have solar desalination plant. According to the national strategy the planned installed capacity will amount to 300MW 600MW (CSP, PV and hybrid power plants) by 2020. Jordan lies within the solar belt of the world; it is ideal for PV and CPV as well as CSP generation. In addition to:

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FIGURE 7 JORDAN SOLAR BELT

Manufacturing photovoltaic cells PV invertors to market locally and regionally. Participating in turnkey projects in solar energy farms in Jordan and regional markets. Manufacturing solar water heaters. Developing training programs to facilitate installation of photovoltaic technology in the region because of the strategic location of Jordan. Establishing R&D testing facilities for energy. Establish regional offices in Jordan to offer services in renewable power operation solutions and renewable energy infrastructure such as Independent Power Producer (IPP) projects to serve local and regional markets Services include information, investment opportunities, liaising with public and private sectors, tax exemptions, and investor follow-up.

MARKETING ENTRY AND DEVELOPMENT


The Jordanian market; like most nontraditional markets, best entered by working closely with a local agent, distributor or partner. That will give the ability to invest and bid directly on the energy projects in Jordan, depending on their quality and advanced technology understanding the specificity of this market as well as the potential will help using Jordan as a regional hub for Solar Energy Solutions. Working closely with Jordanian agents, distributors or partners are essential to ensure a competitive position and successful market entry FIGURE 8 WHY IN JORDAN

4PS ANALYSIS
Study and understand the perspective of consumers rational and emotional attitudes towards solar technology. These attitudes affect the desire to purchase. Consumer reaction to solar technology (e.g., price, reliability, quality issues) the concerns and issues that prevent sales. For International marketing, solar power needs to be evaluate the following:

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Product Solar power solutions are having deferent types depending on the end customer, some installations are small, other are hug setups that will involve inverters, panels, batteries cabling, in addition to services contracts. Price One of the biggest barriers to the solar marketplace is the price; many countries are addressing the financing of solar to help overcome consumer price concerns. Today, financing mechanisms are broadening access to solar power and making it available to new customer. Place Channels through which solar is sold, such as websites, distribution channel, strong supplier network to keep up with rising demand; ensuring that customers can easily find. Prom otion Solar should be a primary focus as Jordan programs seek to increase the visibility of solar installations and broaden the appeal of their solar incentive programs. Using communications and promotional strategies to favorably present solar in the marketplace and ensuring that the right messages are presented to the public will help build a stronger market for solar technologies.

SWOT ANALYSIS

FIGURE 9 SWOT ANALYSES

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SEGMENTATION:
Better understand for customer through market research, focus efforts on specific target customer bases (customer segmentation), and address key messages to reach those audiences effectively and efficiently (communications) G eographic Segm entation: Solar panels are most efficient in areas of no shade and have a southern facing roof. Which is typically for most of householders in Jordan. Dem ographic Segm entation Two types: residential and commercial customers. Residential: small roof, low demand for electricity, less money to spend. Commercial: larger roof space, lots of energy consumption, more money to spend. The total population of Jordan is 5,595,000 and the demographic distribution for Residential area is all over Jordan with high density in major 3 cities. Commercial Customers are only in the capital Amman, Irbid and Aqaba. Psychographic Segm entation People interested in buying solar panels have common values and needs. They want to save money of electricity, help protect the environment. reduce hundreds pounds of C02 emissions that will be saved over the lifetime of the panel, money will save, that they will break even on their investment, and overall rate of return.

CONCLUSION
To conclude, solar energy can be harnessed in different levels around the world. Depending on a geographical location the closer to the equator the more "potential" solar energy is available. Solar power has great potential; the global total of solar PV was roughly 67 GW at the end of 2011, to be compared with just 1.5 GW in 2000 It would also appear that solar, wind or biomass would be sufficient to supply all of our energy needs; however, the increased use of biomass has had a negative effect on global warming and dramatically increased food prices by diverting forests and crops into biofuel production. As seen, solar panels can also face high installation costs and damage easily. Direct subsidies alone cannot lower the cost barrier; the availability of low interest loans is also essential, especially for low-income households. There should be suitable financing mechanisms to help overcome the investment barrier, quality labels or technical standards to ensure high performance levels of installations. More generally, there should of course be complementarity between financial incentives, public information and awareness campaigns. Such campaigns are intended to stimulate public interest in solar power; consumers must still be given the possibility to acquire solar energy solutions installations. The Electricity Law, as well as the Government Energy Policy open the door for private sector to invest in power generation projects. To encourage the private sector to invest in electricity projects, the government has requested proposals from Independent Power Producers (IPPs) for development and implementation of different types of power generation projects on a Build, Own, and Operate (BOO) basis. Solar Energy Is the least site-specific among the renewable energy sources. As sunshine is more or less everywhere, so solar power can be everywhere. Solar energy has two primary applications; thermal and photovoltaic. Solar thermal energy is used either for direct applications such as heating water and drying grain, or for indirect applications such as generating steam for producing electricity. Photovoltaic (PV) energy is used to produce DC (Direct Current) electricity directly from sunlight.

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BIBLIOGRAPHY
(2010). 5 IMPACTS OF SOLAR ENERGY DEVELOPMENT AND 5 IMPACTS OF SOLAR ENERGY DEVELOPMENT AND. BECK, F. a. (2004). Renewable Energy Policies and Barriers. (E. o. Energy., Ed.) BP. (2012). Solar Power. Retrieved from bP: http://www.bp.com/sectiongenericarticle.do?categoryId=9025019&contentId=7046515 Global Energy Statistical Yearbook 2012. (n.d.). Retrieved from http://yearbook.enerdata.net/renewablein-electricity-production-share-by-region.html Jha, e. Trade Flows, Barriers and Market Drivers in Renewable energy supply goods. Maguru Consultants and University of Warwick. International Centre for Trade and Sustainable Development (ICTSD). Komor, P. (2009). Wind and Solar Ectricity challenges and opportunities. USA. Marketing:, K. o. (1999). How to Create, Win, and Dominate Markets. mostafa, M. renewable potential in the arab region. ciro. Tom Lutzenberger. (n.d.). The Impact of Solar Energy. eHow . Tsoutsos, T. (2005). Environmental Impacts from the Solar Energy Technologies. P. V. Kamat, "Meeting the Clean Energy Demand:," J. Phys. Chem. C 111, 2834 (2007).

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APPENDIX: POLITIC ACTIONS


Recent political developments and legislature, ISES is the largest international solar organization, with extensive membership worldwide. ISES has members in more than 110 countries, and sections in over 50 countries with thousands of associate members, and almost 100 company and institutional members throughout the world, The International Solar Energy Society (ISES) works to achieve 100% renewable energy for all, used efficiently and wisely, by providing the global renewable energy community with a collective, scientifically credible voice and up-to-date information gathered and synthesized by its talented members. From a Rice University whitepaper) that it would take 25000 square kilometers of solar panels to produce all of the U.S. Electricity needs for one year, and there is definitely this amount of land available in the United States.

SUPPORTING CHARTS:

FIGURE 10 OIL CONSUMPTION

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THE ADVANTAGES OF SOLAR ENERGY VS. OTHER RENEWABLE ENERGY SOURCES


Solar vs. W ind Wind turbines can take a lot of space and be noisy, so theyre better suited for rural rather than urban locations. Wind energy works best in windy places, not surprisingly. Solar power is versatile Germany is currently the largest market for solar panels, even though its not known as a particularly sunny place. In other words: its more important to live in a windy place if you want to use wind turbines than it is to live in a sunny place if you want to use solar panels. Wind turbines require maintenance, and solar is virtually maintenance-free. Wind power can be less expensive to produce initially. On the other hand, the federal tax credit, state and local incentives, and SRECs are making solar power more affordable. 1BOG is also helping by negotiating group discounts for communities. In some places, you can recoup your investment in solar panels really quickly. Solar vs. H ydropow er Hydropower is typically done in large-scale dams rather than for homeowners (although someone with a rushing stream or river on their property might be able to use small scale micro-hydro); solar can be used almost anywhere. Large dams are extremely expensive to build. Flooding large areas of land destroys habitat and can force human relocation; solar panels can be installed on existing unused space like rooftops. Building large dams can cause geological damage leading to earthquakes. Dams can unfairly alter water supply between communities and countries. Building dams alters the natural water table level and can negatively affect wildlife such as salmon. Solar vs. Biom ass Biomass (wood or plants) is usually used for fuels rather than electricity production, though it can be used either way. Right now, most homeowners in the U.S. dont have the option to purchase electricity made from biomass, though its available in a very small number of areas. Crops like sugar cane and other sources for biomass require land that could otherwise be used for growing food. Algae helps avoid this problem somewhat because it can grow in water. Solar doesnt necessarily need to use land space, since it can go on existing roofs. Burning biomass creates CO2 emissions, though less than fossil fuels like coal. Solar energy doesnt create emissions as it produces power. Solar panels have efficiencies as high as 19%, meaning that much of the suns energy is converted into electricity. The efficiency of biomass is much, much lower perhaps less than 1%..

MARKETING MIX TO CREATE A MARKETING PLAN


Products Tameem ALZOABI

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There are tow type of products to have a solar energy solution Goods: panels, transformers, inverters, necessary construction equipment. Include all the equipment needed, spec sheets, and warranty info to better inform the customers. Services and ideas: expert and experienced salespeople, engineers, and installers. Perform analysis of the property and financial implications of the purchase. Perform maintenance at no charge if anything breaks. Price The total initial price is usually pretty high. Use marketing to get the client to think of the purchase as an investment, rather than a huge expense. Place Salespeople need to be available to travel to the individual sites to perform the analysis, and go wherever they need to close the sale. Prom otion Advertising: newspaper, TV, radio, billboards, social media. Personal Selling: very important. Solar Panels are complex and customized. Meet face to face with the potential buyer to understand their goals and resources. Public Relations: events and conference to highlight the importance of solar energy and usefl used as well report new developments in the renewable energy industry. Sales Promotions: Local and federal tax credits and rebates are available to those who invest in solar. Under the right circumstances, the government will pay for nearly half of the total purchase. This drastically reduces the net customer investment and increases the motivation to buy.

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