SolarNow gets USD 6m for off-grid solar options in Uganda

Uganda-based solar systems installer SolarNow said on Wednesday it has obtained a USD-6-million (EUR 5.1m) loan to help homes and businesses go solar.

SolarNow provides financing and installation services for modular solar systems and solar appliances to off-grid households and entrepreneurs in Uganda and Kenya.

The USD-6-million loan was arranged by solar finance specialist SunFunder. SunFunder, social investor Oikocredit and asset manager ResponsAbility Investments AG provided USD 2 million each. The investment is structured as a structured asset finance instrument (SAFI) or a bankruptcy-remote special purpose vehicle for financing solar offerings under the pay-as-you-go model or solar lease options among people with no access to electricity.

The deal is SolarNow’s second SAFI with SunFunder and their fifth transaction together, SolarNow noted. According to SolarNow’s CEO Willem Nolens, it will enable the company to take advantage of the market opportunities in East Africa and lift the share of off-grid homes using solar systems in Uganda to 70%.

(USD 1.0 = EUR 0.848)

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