Browsing by Author "Ludick, Sheldon"

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    The Relationship between Renewable Energy Products and Cost-Effective Electricity among Middle-class consumers in Gauteng
    (University of the Witwatersrand, Johannesburg, 2024) Ludick, Sheldon; Venter, Robert
    This executive summary presents a business venture proposal to address the need for stable electricity in South Africa, by offering renewable energy solutions to middle to upper-income households. The proposal focuses on charging customers per kilowatt basis, thereby eliminating the initial capital outlay typically required for setting up renewable energy systems in homes by providing renewable energy infrastructure at no upfront cost to the consumer. A pay-as-you-use model stands as the unique selling proposition of Renew Able Technologies, giving it a distinct competitive advantage. By partnering with residents in the target living standards measure LSM bracket, the business aims to provide long-term electricity supply through renewable energy technologies at a competitive per- unit or kilowatt cost, creating a monthly income stream, while creating a long-term partnership with consumers. Additionally, renewable energy is environmentally friendly, and contributes to a greener, cleaner, and sustainable future. As a consequence, this proposal is not purely based on the current supply issues of electricity in South Africa, but instead, it aims to create a profitable business, at once contributing to the planet's sustainability. The business venture proposal will calculate the average daily usage of kilowatt hours to determine the appropriate solution for each household. Implementation costs will vary based on individual household needs; correspondingly, larger households will incur higher charges based on their monthly usage. Estimates suggest that by 2030, there will be over 100 million homes globally equipped with solar energy or other renewable energy sources, a significant increase from 25 million homes in 2020. This proposal aims to support this growth, by enabling households with limited upfront resources to access renewable energy through a per-unit supply model. The proposal suggests offering an affordable monthly electricity bill to attract customers who desire to switch to renewable energy but are put off by the upfront expenses. This proposal presents a solution to the current lack of renewable energy accessibility for households. The pricing strategy will adopt a competition-oriented approach, ensuring that the shift to renewable energy minimizes household monthly spending for electricity while promoting long-term self- sufficiency. Our marketing efforts will be geared towards middle- to upper-income homeowners through promotions at various events, roadshows, and advertising agencies. We will ensure that product and pricing information is easily accessible to everyone through radio and television channels. By doing so, we aim to reach as many potential customers as possible and provide them with the best possible service. To finance the venture, we plan to seek equity and loan funding. Specifically, we are proposing a split of 60% equity and 40% loan. In summary, this business venture proposal aims to capitalise on the growing demand for renewable energy, by offering households an affordable alternative to traditional electricity. In eliminating the initial capital outlay, the proposal seeks to tap into a market segment that desires renewable energy solutions but is hindered by cost constraints