How a botched childhood experiment created solar firm with Sh150m in sales

When Charles Rioba tried to light an electrical bulb by assembling a contraption of used radio batteries, the experiment failed to the delight of his eight-year old age-mates.

They dismissed the gesture as yet another publicity stunt but little did they know that the episode had set in motion a career path for Rioba who is now Managing Director at Solar World, a leading alternative energy provider in Nairobi.

The firm, which has been in existence for 25 years plans to set up base in other countries such as Burundi and Malawi.

It currently has operations in Tanzania, Uganda and Rwanda through field offices and agencies.

Just recently, Mr Rioba returned from Sudan where his company has just opened shop to serve the growing demand for alternative and renewable energy solutions.

Mr Rioba quit Total Solar Kenya in 1990, a renewable energy firm where has was a manager, to set up Solar World.

The firm now specialises in solar lighting and heating, power back-up systems and other renewable energy systems

Solar World, which is now recording average sales of Sh150 million annually, up from around Sh10 million five years ago, hopes to grow its revenue base five fold over the next two years.

“We are looking at Sh500 million by 2012, ” said Mr Rioba, a chemical engineer who doubles up as a consultant with the Ministry of Energy, Kenya Bureau of Standards and lectures at Kenyatta University. “The trick is blending the technical knowledge, services and customer needs, ” he added.

In Kenya, Solar World is angling for a new opportunities as the government moves to widen energy sourcing through proposed laws that require installation of solar water heating equipment on all new buildings.

The Energy Regulatory Commission (ERC) has published a raft of regulations requiring families of more than four people that use electricity to boil water, to install solar heaters.

“We are targeting at least 5,000 installations through a financing scheme that will allow homeowners and property developers to acquire the needed systems in a cost effective manner, ” said Mr Rioba.

“It will be possible to acquire even the most complex and expensive solar system by spreading payments over a period of six months,” he said, adding that since inception, the Donholm based firm has installed over 50,000 square meters of solar heat collectors to heat more than 2.5 million litres of water country-wide each day.

One of its most famous products is a portable solar power system that can light two rooms, charge a mobile phone and power a radio.

“The product retails for Sh6500 and comes complete with cables, a battery and solar panel, ” he said.

The solar heaters market has been growing globally as Governments, big corporations and environmentalists wage the alternative energy campaign.

Entrepreneurs have also been touting solar as a viable source of energy for Kenya by making it more affordable to millions of consumers who depend on the national electricity grid for their energy needs.

Cost of electricity

The cost of electricity has more than doubled in the past 12 months, forcing policy makers to fast-track the roll-out of alternative energy regulations to help increase supply and arrest pricing turbulence.

Frequent power shortages and the accompanying price escalation erode about 1.5 per cent of Kenya’s GDP every year besides weakening the ability of the economy to attract fresh investments, according to the World Bank.

Mr Rioba, however, says substandard solar systems continue to flood the market, threatening the earnings of genuine players.