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

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

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)

One example where all barriers are dealt

withEnergy

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

Diapositiva 4

JO7 What is an CBO? => please defineJanosch Ondraczek; 21/03/2014

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

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

Q&A