EnDev Results Based Financing (RBF) for Rural Market Development of Pico-Solar - Tanzania

With only 36% of Tanzanians having access to electricity (21% in rural areas) and a vast majority of the country expected to remain off-grid for the coming decades, innovative financing mechanisms are needed to spur last-mile distribution of clean energy solutions. In collaboration with EnDev and DFID, SNV is establishing a market for Pico PV technologies in the rural areas of Tanzania’s Lake Zone.

The Results-Based Financing (RBF) for Pico-Solar Market Development project aims to improve market access to and use of quality pico-solar devices for rural and off-grid households. Central to the programme is a Results-Based Financing facility, a partnership between the banking sector and suppliers, making available the necessary financial support for the development of the value chain. The RBF facility focuses on the application of a temporary financial product in mainstream banking that serves to assist the private sector in developing the market for pico-solar products (lanterns, phone chargers and small solar home lighting kits) in rural areas of Tanzania's Lake Victoria Zone.

This is one of two project being implemented by SNV as part of the EnDev Tanzania programme, the other being Tanzania Improved Cookstoves (TICS).

Objectives:

• Access to clean solar energy for 360,000 rural Tanzanians

• Engaging solar companies in the programme and increasing employment (company staff and independent sales agents)

• Diversifying solar products and services in these new markets