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Solar Kits to Facilitate Access to Sustainable Energy for Rural Households

Project

Energy

This project is carried out with the support of the European Union

Des kits solaires pour faciliter l’accès à l’énergie durables des foyers ruraux
© AFD
Project start date
Status

Completed

Project duration
4 years
AFD financing amount
2 000 000 US$
Country and region
Cambodia
Location
Rural areas
Type of financing
Grant
Partners
European Union
Beneficiaries
Microfinance Institutions: Kredit, Vision Fund et TPC, Cambodian solar sector
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The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.

The Green Microfinance Program is helping develop supply and demand for high-quality solar panels to facilitate access to energy for rural households in Cambodia.

Context

In rural areas that are not connected to the grid, individual solar systems provide households with access to electricity. In 2014, only 34% of rural households had access to electricity in Cambodia.

However, the lack of cooperation between banking institutions and solar equipment distributors has prevented the development of loans for rural people to buy solar kits.

Description

The Green Microfinance Program has several objectives:

  • Improve living conditions for households in rural and remote areas by giving them the means to buy affordable individual solar systems that are more environmentally friendly than thermal generators    
  • Raise public awareness about the use of solar systems through information campaigns 
  • Develop a local supply of high-quality individual solar systems by creating a label and paying subsidies based on the results of the solar product distributors approved by the program   
  • Help three microfinance institutions (MFIs) diversify their portfolio by providing loans to buy solar kits
  • Help develop innovative systems to meet public demand. 

     

Impacts

The Green Microfinance Program is raising the awareness of 40,000 Cambodians about the benefits of individual solar kits. The inclusion of three microfinance institutions in the project has made it easier for rural people to invest in solar energy through the development of loans for this type of equipment. In addition, the Good Solar label guarantees the quality of the solar kits on offer and financed under the program.

In four years, the Green Microfinance Program has provided some 15,000 households with access to solar electricity.