Solar kits and microfinancing

The objective of the “Micresol” project was to reduce poverty among rural populations in two regions of Burkina Faso through sustainable and affordable access to electricity services. The project consisted of two separate parts: part 1 and part 2.
– Part 1 included the dissemination of 1.000 solar kits – Solar Home Systems – in the Central and Eastern region of Burkina Faso by means of micro-financing;
– Part 2 included the development of a rural electrification strategy for renewable energy in the Northern region of Burkina Faso.

Especially part 1 proved to be successful in promoting renewable energy amongst the rural communities. The populations in rural areas uses a lot of energy, but they rarely have the means to invest in cost- and energy efficient solutions like a good quality solar home system. Many people don’t have much trust in these kinds of products, because they have negative past experiences with poor quality solar kits. However, drawing from the experiences of a previous pilot project, the Micresol project partners found a successful model consisting of:

– good quality subsidized solar kits;
– a flexible and adaptable business model;
– favorable payment terms through a local financing institution;
– free repair and replacement services by a local business in the installment period.

This model was not successful in the beginning of the project implementation period. The local communities had to gradually adjust and gain confidence in the solar kits through word of mouth. But when the first clients were happy, more and more people joined the scheme, and today the demand for, and the interest in, this green and energy efficient solution is fast increasing.

For more information on the Energy Facility projects, please visit the ACP-EU Energy Facility Database.