Development DFI Energy Impact Investment Solar power Uganda

Using solar home systems to financially empower rural Uganda

Millions of people in rural Uganda are set to access reliable and cheap electricity for the first time under a new off-grid solar scheme.

ENGIE through its solar home systems company Fenix International will be scaling up off-grid solar technology deployment with the European Investment Bank (EIB) providing the critical funding.

EIB’s involvement addresses the biggest barrier faced by 80% of Ugandans without access to electricity – solving the last mile challenge of families unable to afford the initial upfront cost of electricity for the home.

EIB will provide a US$12,5M loan to support the deployment of 240,000 high-quality solar home systems in Uganda by Fenix International, which a subsidiary of ENGIE.

Also read: Uganda Hoima-Butiaba-Wanseeko road construction completed

Fenix will use a pay-as-you-go model, which will allow families to repay the upfront equipment costs of the solar home systems over years at less than 20 cents (in US dollar terms) a day.

The financing via EIB will also allow repayments for systems purchased in US dollars, to be made in Ugandan shillings. Previously currency fluctuations have been a major hindrance to Ugandans without access to foreign currency, seeking clean affordable clean energy solutions.

Source: EsiAfrica via Crude Mix Africa

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