- Grant-backed initiatives will boost subsidized access to clean, affordable solar energy for off-grid homes and businesses in Uganda.
- The funds will be used to subsidize the prices of essential clean energy solutions such as clean cookstoves, Solar Home Systems, and solar lanterns.
- More than 58 per cent of Uganda’s population, or over 18 million people, live without access to electricity.
d.light, a global provider of household solar products and affordable financing solutions for low-income households, is actively engaging in new grant-funded initiatives supported by the Ugandan Government.
The objective of these initiatives is to expand access to clean and affordable solar energy for homes, businesses, and public institutions in Uganda that currently lack reliable energy access. This concerted effort aligns with the country’s broader goals of sustainability and energy inclusivity.
With a total value of US$148M, the grants serve as crucial financial support for the green energy company endeavors. The funds will be used to subsidize the prices of essential clean energy solutions such as clean cookstoves, Solar Home Systems, and solar lanterns.
d.light grant plan to offer financing for low-income customers
Additionally, the grant will facilitate the provision of financing options for low-income customers, enabling them to access these products through loans. Leveraging a credit line of up to US$100 million, the company aims to make clean energy products more accessible to a wider segment of Uganda’s population.
A noteworthy aspect of this collaboration is the results-based nature of the grants. The green energy company is poised to receive funding once it achieves specified sales targets, as mutually agreed upon with the Uganda Energy Credit Capitalisation Company (UECCC).
As the organization wholly owned by Uganda responsible for coordinating and allocating public and private investments in renewable energy infrastructure, UECCC plays a pivotal role in ensuring the success and impact of these initiatives, marking a significant step towards fostering sustainable energy practices in Uganda.
One of teh initiative is the Uganda Government’s Electricity Access Scale Up Project (EASP), financially supported by the World Bank. Through the EASP, d.light is contributing to the expansion of electricity access across the country, marking a collaborative effort to enhance the well-being of Ugandan households and businesses.
In addition to its involvement in the EASP, the green energy company is dedicated to another impactful program focused on supporting refugees and their host communities in Uganda. This initiative involves providing subsidized solar products and affordable personal finance options.
International development agencies, including the German Government’s Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and funding from the Government of Netherlands through Energising Development (EnDev), play crucial roles in supporting this demand-side, results-based finance project.
Addressing energy needs of vulnerable populations
By actively engaging in these programs, d.light is not only addressing the energy needs of vulnerable populations but also contributing to broader international efforts toward sustainable development.
Since launching operations in Uganda in 2016, the company has played a pivotal role in offering an array of solar-powered household appliances and systems, ranging from solar home systems and lanterns to clean cookstoves, TVs, and smartphones.
With an office in Kampala and a dedicated workforce of over 120 employees nationwide, d.light continues to be at the forefront of the effort to bridge the energy access gap in Uganda. The stark reality of the situation is highlighted by USAID’s observation that Uganda grapples with one of the lowest electrification rates globally, with more than 58 per cent of its population, or over 18 million people, living without access to electricity, underscoring the urgency and significance of initiatives led by organizations like d.light.
In response to the move, company CEO Nick Imudia noted the pivotal role that reliable and affordable electricity access plays in fostering economic growth and social development, particularly in uplifting communities from poverty and enhancing their overall quality of life.
Imudia underscored the significance of off-grid solar products as a practical and proven solution to address the daily energy needs of populations in countries like Uganda, where roughly 18 million people still lack access to electricity.
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d.light network of distributors and agents
He lauded initiatives such as the Uganda Energy Credit Capitalisation Company (UECCC) program for its government subsidy and credit support, which facilitates broader access to clean, safe, and sustainable energy solutions, thereby improving the lives of more individuals.
Across Uganda, d.light has cultivated an extensive network of distributors and agents across the country. Imudia says the company has gathered valuable knowledge, experience, and on-the-ground resources, positioning it as an ideal partner to collaborate with the government in achieving its ambitious objective of expanding energy access for households, businesses, and public institutions.
This partnership aligns with d.light’s commitment to leveraging its established infrastructure and expertise to contribute significantly to the realization of the government’s energy access goals, further solidifying its role as a catalyst for positive change in Uganda.
