HomeIndustry SectorsFinance and PolicyUSAID to invest $4m in solar start ups

USAID to invest $4m in solar start ups

During the recently held COP22 Climate Summit in Morocco, Power Africa Coordinator Andrew Herscowitz announced $4 million in new investments in eight solar start ups that are changing the way households access power across Africa.

This energy ‘revolution’ is being made possible through the ‘Scaling Off-Grid Energy: Grand Challenge for Development’.

“The Grand Challenge for Development is designed to support innovators like these eight companies who are scaling up their inventions,” said Herscowitz.

He added: “The options for powering your home and business are changing and these types of innovations will create opportunities to transform the power sector in homes across the planet.”

Solar start ups: The Grand Challenge

The Grand Challenge is a $36 million initiative by Power Africa, the United States Agency for International Development (USAID), the United Kingdom’s Department for International Development (DFID) and independent charity, Shell Foundation, Footprint to Africa reported.

It aims to empower entrepreneurs and investors in achieving 20 million connections to provide households in sub-Saharan Africa with clean, modern and affordable access to electricity by 2030.

According to USAID, the Scaling Off-Grid Energy Enterprise Awards provide seed funding to solar start ups to support geographic expansion throughout Africa, test new business models and tap into private and public financing.

The new awards will enable recipients to expand home solar power solutions to existing and new African markets, improve payment and distribution processes, and bring down costs for customers.

The recipient solar start ups include:

  • Greenlight Planet – (Nigeria,Uganda) expanding sales of low-cost solar home solutions through state of the art pay-as-you-go technology and deep distribution networks.
  • light – (Kenya) developing and expanding on software, training materials, and a call center to support a direct distribution model.
  • Fenix – (Zambia) expanding energy access through its expandable solar solutions kits that include options to power phones, lights, radios, televisions, and other appliances.
  • Orb Energy – (Kenya) establishing partnerships with banks and microfinance institutions to finance consumer solar system purchases.
  • VITALITE – (Zambia) distributing pay-as-you-go solar home systems, televisions, solar lamps, and appliances for rural, off-grid communities.
  • PEG Africa – (Ghana) testing new digital payment tools that will help rural customers more easily pay for their solar home systems using mobile money.
  • Shinbone Labs – (Benin, Ghana) directly selling pre-packaged, expandable, low-cost solar kits that can be remotely activated, monitored and, in the future, paid by mobile phones.
  • Village Energy – (Uganda) building a last-mile solar distribution and servicing network in rural Uganda by training young men and women to become technicians and retail shop managers in their communities.

Herscowitz noted: “With aligned partners who are investing in or supporting the off-grid solar sector, we can accelerate the growth of the household solar sector in Africa.”

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.