30 th August 2006 ALTERNATIVE OPTIONS FOR SOLAR SERVICE DELIVERY Saliya J. Ranasinghe

Options for Service Delivery Create a Separate Division for Solar Lending or Introduce Solar Lending as a New Product within the same portfolio

Conditions for setting up a Separate Division  New target group  Adopt a different methodology for Solar Lending  Identified new locations for Service Delivery

Conditions for considering solar as a ‘New Product Only’  Same target group  Adopt same methodology for Solar Lending  Same locations for Service Delivery  Existing capacity not fully utilized

Advantages of ‘New Product Only’  Low operational cost  Use of existing network for credit recovery  Easy to market the product using the goodwill of the institution

Advantages of ‘Separate Division’  Effective Monitoring ( Portfolio Quality)  Easy and Quick Decision Making  Possibility of creating different systems and procedures for Solar Lending.

STAFFING NEEDS

Information required for the assessment  What are the current activities undertaken?  What could be the expected level of operations Volume Value

Assessment of Present resource availability  Level of competence  Skills  Knowledge  Attitudes  Training received  Practices available to support internal, external customer service in terms of - SPEED PROCESS ACCURACY QUALITY

TYPE OF STAFF REQUIRED will depend on level of operation Requirement levels FIELD LEVEL – Multi skilled people are required Credit appraisal – To practice convenient mode Customer visited - once or more Credit recovery - Customer visited on the agreed dates. Frequency – weekly/ monthly/ quarterly/ biannual Field supervision -Check on the efficiency of the field operation,Security, safety, Prevent frauds Manage delinquency - Extensive visits – scheduled - unscheduled

 Achieve targets set for the area Carryout credit evaluations on the prospective borrowers, Get the loan documents completed by the customer Ensure that the SHS fixed are in compliance with the project standards, Attend to technical defects,complaints, Keep the customer satisfaction level high Achieve desired collection levels, Generate required reports Manage delinquent borrowers with extra care Arrange removal and re -installing FIELD OFFICER

FIELD SUPERVISOR  Develop good customer relationship  Carry out customer education  Coordinate with suppliers’ technical officers / Attend to minor technical faults  Prepare itinerary for field visits  Maintain log books, field charts  Liaison with other organizations, if any  Arrange promotional programs  Support other team members / Train new members  Get familiar with accounting process and documentation  Supervise the field

Important Factors to Remember  Design all the operational procedures for the Product  Incorporate the new product with MIS  Incorporate with the Staff Incentive Scheme  Train all Loan Officers on the New Product  Train a Specialized Officer on Solar Product in each Branch (Training should include Technical Knowledge)

Monitoring  Set targets for lending and recoveries  Show results of the Solar Lending separately in all the reports  Regularly monitor progress  Provide feedback to TOP Management for decision making

Final Recommendation First mover into Solar Lending the most cost efficient way is to start with a product Only Strategy When Business grow to graduate into a Separate Division.