More from: Kenya

Renewable Energy Microfinance and Microenterprise Program (REMMP) Benefits 1 Million People with Clean Energy!

We are delighted to announce that as of April 30th 2016, Arc’s USAID-funded Renewable Energy Microfinance and Microenterprise Program (REMMP) has passed the milestone of 200,000 sales of energy products. That equates to over 1 million people benefiting from clean energy in five countries – India, Uganda, Haiti, Kenya and Nepal.

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The 200,000 customers – of which 67% are women – have received access to products such as solar lanterns, solar home systems (SHS) and efficient cookstoves under a range of consumer financing mechanisms which seek to bridge the affordability gap inherent in providing products like these to the poor. REMMP has also addressed distribution challenges posed by the “last mile” through promoting “supplier” financing mechanisms.

These financing mechanisms range from different microfinance loan models built and expanded under REMMP by Arc’s MFI partners, to asset finance offered by energy enterprises, remittances from migrants, and trade finance for agents conducting cash sales. Arc’s goal under REMMP remains to pilot, test, evaluate and scale different financing mechanisms for distributed renewable energy products (such as small-scale solar for off-grid households) and in doing so, pave the way for commercial scaling of this sector by demonstrating the viability of these models.

In order to facilitate sales, REMMP partners have disbursed over US$13 million in loans and over US$29 million in investment has been leveraged under the program. Over 37,000 tonnes CO2e has been displaced by the clean energy products sold and the equivalent of 2.1MW of solar capacity has been installed. A recent annual phone survey reveals 98% product satisfaction among clean energy customers, and 87% likelihood to recommend the product to friends or family.

After spending several years laying the groundwork through capacity building, partner and product evaluation, and all of the other critical steps to building local capacity – mostly from scratch – REMMP is seeing sales accelerating. In fact, the milestone of 100,000 clients reached was just passed in July 2015. REMMP expects even more rapid scaling in the coming months as the affordability gap for clean energy products continues to narrow through the hard work of our partner organizations.


M-KOPA Solar: Combining Asset Finance with M-Banking to Drive Affordability in Kenya

In sub-Saharan Africa, nearly 590 million people lack access to electricity, including eighty-five per cent of rural populations. M-KOPA Solar is seeking to change this. Based in Kenya, M-KOPA Solar (www.m-kopa.com) is an innovative asset financing company that sells small-scale solar home systems (SHSs) to off-grid households on an affordable, 12-month mobile money payment plan via hire purchase. As of February 2014, M-KOPA actively provided affordable solar power to over 50,000 Kenyan households – and is adding a thousand more households per week. M-KOPA has ambitious plans: it has just raised US$20 million to fund expansion of its customer base from fifty thousand to one million households by 2018.

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Group-based Solar Microleasing in Kenya — a Conversation with Konrad App, CEO of Stima Systems

Stima Systems is a Kenya-based energy startup that delivers affordable lighting and charging services to low-income off-grid customers using a distinct payment model: the group microlease. In this conversation Stima CEO Konrad App shares the origins of Stima’s model and provides insights into the power of groups to expand access and support commercial viability.