Understanding the Solar PV paradox in East Africa – the 4 barriers yet to be put down

1. Understanding the Solar PV paradox in
East Africa – the 4 barriers yet to be put
down
Presenter: Prof. I. P. Da Silva – Director
Workshop: Innovative Finance for Access to Energy
Milan, September 21st, 2015

2. The Paradox
The Solar Belt (+/-35 degrees latitude)
Huge grant support by developing agencies
Favourable taxation and yet:
Less than 5% of the world installation in this so sunny area

3. The Four barriers for the uptake of Solar PV
in East Africa
Access to Finance (Green line of credit; Get FiT)
Awareness (Last Mile Entrepreneurship – GIZ/SNV)
Access to Technical Support Services (PEER)
Enabling Environment (Government Input – LCPDP)

4. One example where all barriers are dealt
with
Energy
Company
C. B. O
LUAV
Technical
Support
Participant Recruitment;
Management of Payments;
Awareness Creation
Technical Services;
After sale Support
Technical
Training
Technology,
Training,
Vetting
Awareness Creation;
System installations
JO7

5. Diapositiva 4
JO7 What is an CBO? => please define
Janosch Ondraczek; 21/03/2014

6. Features
A LUAV consists of at least
100 households organized
into a CBO
Energy company sets up a
revolving fund for each CBO
through a financial
intermediary
Management of the revolving
fund and collection of
payments is done by CBO
Households access the SHS at
130 USD payable over 12
months to the CBO.
Success to date
Over a 12 month trial
period,
18 LUAVS set-up to date
3000 households have
accessed SHSs
Low delinquency rate
noted – Only one CBO
defaulted

7. Conclusions
FiT, Net Metering, Green lines of funds, support to the local
industry (Ubbink; Chloride Exide)
Proximity to operational solar technology solutions increases
uptake. Use of Schools and County Government Offices to
educate the population. Curbing low standard products (Lab)
Would you buy a car if… Training of Trainers; TTIs; Women; ERC
– The stick and the carrot! AEP(EA)
The upcoming Energy Bill 2015; Zero VAT; Review of the LCPDP
to include Solar PV; matching speeds of public and private
sector

8. Q&A