The Solar Lantern Savings Scheme Project

Through this project, SNV supported the distribution of solar lighting products to off-grid households in Ghana.

SNV and Barefoot Power - a global social for-profit enterprise that manufactures and distributes solar, lighting products and business development services to people at the base of the economic pyramid - partnered to provide the opposite of the credit based schemes used by many industry players. The project piloted a savings scheme, that allowed customers to save toward the purchase of solar lanterns. In partnership with selected BoP organizations, the project designed and implemented dedicated savings schemes which provided customers an incentive to save for solar lanterns. This model has been coupled with a cash and carry sales model for upper BoP customers that have enough disposable income to afford once off payments.

SNV and Barefoot provided sales and technical training to members of the partner BoP organizations that operated as retailers in their respective districts or villages. They were equipped with sales invoices as well as product brochures to facilitate marketing and sales. As part of partner support to roll out innovative savings schemes, SNV also provided a base load of GHS10,000 to the Ghana Permaculture Network to enable them to implement a high-yielding interest rate product for customers in their catchment areas.

SNV targeted the national market which potentially stood at about 2 million households. The target groups were mainly members of the partner BoP organizations in off-grid areas who lack awareness on cost and benefits of modern energy alternatives and face limited access to credit.