Marketing Solar Energy in Ghana

Abstract

This chapter reports the results of an exploratory qualitative investigation into buying behaviors and growth challenges within the solar energy industry in Ghana. It is premised on the understanding that African firms may experience “liabilities of localness” when marketing renewable energy products developed in the West. That is, customers doubt their capabilities to produce and install these products. Thus, market-driven growth of the solar energy sector in Ghana requires firm-level capability development through institutional support that promotes effective cross-border inter-firm collaborations as well as trust-building relationships with local customers. The results of the study confirm these observations. They show that Ghanaian consumers tend to evaluate the capabilities of foreign solar energy providers as superior to those of local firms. However, collaborations between local and foreign firms have enhanced their credibility. Firms rely mainly on word-of-mouth recommendations to attract new customers and see customer price consciousness as a major growth constraint.