The Scope of Using Solar Panels in Guatemala - Term Paper Example

Scope of Solar Panel Business in Guatemala Introduction A solar panel, also called photovoltaic panel, is an interlinked assembly of photovoltaic cells. It is widely used as a part of a huge photovoltaic system for the purpose of generating and delivering electricity in residential as well as commercial applications. Generally, a photovoltaic system comprises of a set of solar panels, an inverter, and interconnection wiring. Nowadays, the application of solar panel is of great significance in the context of mounting energy crisis across the globe. This report will analyze the scope of using solar panels in Guatemala, a country located in Central America, in order for managing the country’s growing energy demands. Guatemala has an area of 108,890 km2 and an estimated population of 13,276,517. Geography Guatemala is situated “between latitudes 13o and 18oN, and longitudes 88o and 93oW” (“Guatemala.”). The country contains a number of small deserts and hilly valleys. Two mountain chains divide the country into three regions namely the highlands, the Pacific coast, and Peten region. The climatic conditions dramatically vary across different regions of the country. Weather information indicates that the country gets maximum temperature at its highlands. The country’s all major cities are located in highlands and the Pacific coast areas. Since majority of the Guatemalan population resides in highlands, all of them cannot effectively use conventional modes of energy. In order to meet mounting energy needs, Guatemalan people can depend on solar energy especially because they get high temperature at highlands, where majority of the population lives. Political Risk “Guatemala is a constitutional democratic republic” and the country maintains a multi party system (“La Patria marching..”). President of Guatemala has the supreme power in the country and he is the head of both state and government. The country’s legislative power is exercised by both the government and the Congress of the Republic. While observing the Guatemalan political spectrum, it seems that country’s political parties are numerous and unstable. It must be noted that none of Guatemalan political parties has won the presidency election more than once. In addition, parties like Christian Democrats have not lasted more than a decade as major force in Guatemalan politics. However, it is observed that the Guatemalan government greatly encourages solar energy business in order to resolve the country’s increasing energy deficiency issues. Laws relating to solar panels in Guatemala The country is nowadays vehemently trying to build a stronger economy by reducing operational costs and addressing the needs of demand management. As discussed above, the Guatemalan government has a friendly approach towards solar energy generation and distribution in the country. As Rivera reports, Guatemala is one of the twenty four global countries that receive technical and financial aid from the Renewable Energy and Energy Efficiency. Hence, the country offers tariff concessions to solar panel manufacturers with intent to provide solar energy generation facilities to various parts of the country. In addition, the Guatemala government has lessened the import duty of solar panels so as to promote the use of renewable energy. Education, religion, and language There are number of public schools in the country under the control and administration of Guatemalan government. Although the government provides free education, the poorer segments of the society have less access to school services because of the costs related with uniforms, books, and transportation. Surveys indicate that 25.5% of the Guatemalan population aged 15 and over are illiterate. It is expected that the country would achieve 100% literacy within 20 years. While analyzing the religious landscape of the country, it seems that around 50-60% of the Guatemalan population is Catholic and 40% protestant whereas another 3% constitutes Eastern Orthodox. The indigenous Mayan faith is also observed in the country. Spanish is the official language of the country and it is spoken by nearly 93% of the population. There are twenty one Mayan languages spoken in rural areas while two non-Mayan Amerindian dialects are spoken in the Caribbean coast (“Guatemalan Americans”). Since Spanish is a global language, the marketing activities of solar panel are less likely to be expensive. In contrast, the poor literacy rate of the country may raise challenges to solar panel business in Guatemala. Social organizations The social structure of Guatemala reflects that the country’s middle class population constitutes less than 20% of the total population. In contrast, lower class people represent a notable proportion of the country’s population. The Guatemalan people give great significance to family life and hence the family members tend to live together. Generally, a typical Guatemalan family includes parents and their unmarried children. A number of governmental and nongovernmental organizations are working in Guatemala. These organizations mainly try to improve the way the people live and thereby promote social welfare. Hopefully, these social organizations would assist solar panel business in the country since solar energy consumption may reduce the overall energy expenses. Aesthetics Music has been major influence on Guatemalan aesthetics since colonial times and Catholic churches mainly depended on music to promote Christian doctrine in the country. In addition, folklores have also strong roots in the country. Culturally important symbols like the sun and the sky blue color on the country’s flag can be effectively employed to promote solar panel business in Guatemala. Living conditions and leisure Corn, black beans, wheat, and rice are the major food sources for almost all Guatemalans. In contrast to this traditional food pattern, many of the Guatemalans are nowadays adapting to a fast food culture. This change would help solar panel business because equipments like induction cookers play vital part in fast food culture. Likewise, housing structure of the country seems suitable for easy installation of solar panels. In Guatemala, outdoor sports are the major recreational activities. Therefore, solar energy cannot be linked much to the country’s recreational activities. Consumer behaviors in Guatemala Brand image is a paramount among Guatemalan consumers and they give first priority to American brands. In addition, they are heavily sensitive to purchase prices and after sales service. The Guatemalan consumer behavior largely varies depending on whether the consumer lives in a city or countryside. In addition, Guatemalan’s social class also plays a crucial role in determining one’s manner of spending. It is observed that the country’s primary shoppers are men and the frequency of purchase is low as almost 56% of the Guatemalan population is under poverty line. Although solar panel sale in Guatemala is less as compared to other American countries, recent trends show that the demand for solar panels is increasing in the country. Consumer behavior in the US Solar panels are widely used for residential as well as commercial applications in the United States. Recently, the federal government has initiated a series of programs for solar panel promotion in the country. According to Solar Energy Industries Association, the United States consumes nearly 9% of total solar panels produced in the world (“Global solar panel sales”). In an interview, Stuart Steger, salesman at a solar panel retail store, opined that US households are increasingly switching their demand from conventional energy resources to solar panels so as to cut down electricity expenses (Personal interview). Referring to a recent survey results, “75% of consumers have a favorable view of solar and wind energy” in the US (“75% of consumers…”). Conclusion Majority of the Guatemalan population is poor and their buying behavior noticeably varies from place to place. However, recent data show that there is an emerging trend of solar panel use in the country. This situation would contribute to the proposed product’s market operations in Guatemala. Evidently, the mounting electricity expenses will persuade Guatemalans to use solar panels increasingly as they are highly affordable. Works Cited “75% of consumers have a favorable view of solar and wind energy, according to new survey.” Pike Research. (2011). Web. 27 February 2012. “Guatemala.” h2oforlifeschools.org. (2012). Web. 27 February 2012. “Guatemalan Americans.” Countries and Their Cultures. Everyculture.com. (2012). Web. 27 February 2012. < http://www.everyculture.com/multi/Du-Ha/Guatemalan-Americans.html#b> “Global solar panel sales: Germany-39%, Japan-30%, USA-9%.” ZD Net. (07 August 2005). Web. 27 February 2012. “La Patria marching band, Guatemala Country.” World News. Inc. (2012). Web. 27 February 2012. Rivera, Marta. “Sustainable energy for Guatemala.” REEEP: Renewable Energy & Energy Efficiency Partnership. (2007). Web. 27 February 2012. Personal interview with Stuart Steger. Read More