The Solar Revolving Fund (SRF) has enabled 84 borrowers to purchase and install solar appliances, averaging 346 watt peak (Wp) for Solar Home Systems (SHS).
This initiative aims to improve access to off-grid renewable energy for rural low-income populations.
According to the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH report, an additional 1,052Wp for PUE appliances, such as solar water pumps and refrigerators, have been installed, all equipped with batteries.
The report titled “Improving Access to Finance for Off-Grid Renewable Energy for the Rural Low-Income Population: Namibia’s Solar Revolving Fund Case Study” highlights that 26 borrowers are productive users, while 58 are private users.
“Of the 28 respondents to a quantitative survey, all five productive users stated they use their solar appliances frequently, while 83% of private users reported the same,” said GIZ.
The study reveals that for two of the five productive users surveyed, the solar systems replaced previous electricity supply solutions, including one diesel generator and one old solar system.
“The remaining three productive users gained access to electricity for the first time. Additionally, 22% of private users replaced previous electricity solutions with new solar-powered appliances, while 78% gained access to electricity for the first time,” said GIZ.
Meanwhile, challenges identified in the project implementation include 14% of respondents citing high battery replacement costs and 11% stating they could not afford potential repairs and maintenance costs.
Moreover, 7% mentioned that the electricity provided by their solar device was insufficient, though only 4% were dissatisfied with the quality of the solar-powered appliances.
“Most users (57%) did not face any problems with their solar appliances,” the report said.
Similarly, project implementation faced delays due to a limited timeframe, insufficient human resources, and a lengthy application process, resulting in only one-third of the planned funds (€90,000) being disbursed.
“To address staff shortages, an intern was seconded to the project. Limited internet access in remote areas restricted the project’s reach, leading to an awareness campaign financed by the Green People’s Energy project, which included pamphlets in local languages,” said GIZ.
The Green People’s Energy project and MME introduced a new financing window for low-income groups to procure solar appliances for productive use.
“These loans are accessible to low-income borrowers, including a digital infrastructure for managing repayments. Low-income individuals pay no interest with a 5%-20% deposit, while farmers and small businesses pay 4% interest with a 10%-30% deposit,” said the study.
GIZ provides funds and receives reports from MME, which handles project activities and loan repayments.
