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Stand-Alone Solar for Productive Use

Solar energy systems propelling economic development

Summary

The Stand-Alone Solar for Productive Use (SSPU) programme of the UEF is designed to scale up electricity access to households, and small and medium enterprises (SMEs) that are engaged in productive use activities. The programme offers results-based grants to solar companies for verified end-user connections based on pre-determined standards. Companies using energy-as-a-service or lease-to-own business models are supported under the SSPU programme.

The objectives of the UEF Stand-Alone Solar for Productive Use programme include:

  • Scale up electricity access for SMEs by supporting sustainable business models that address the challenge of making full upfront payments to purchase solar systems which helps to alleviate the switching costs from polluting energy sources such as fuel generators.
  • De-risk investments in solar companies by providing grant payments to enable solar companies expand their operations to new market segments and serve as a blended finance mechanism to crowd-in additional private capital.
  • Rapidly displace reliance on fossil fuel generators by supporting the transition to cleaner, reliable and more affordable energy solutions.

Eligibility

Interested applicants must meet the following eligibility criteria:

  • Must be a for-profit company legally registered with established business operations in the project host country with a relevant business/trading license
  • Have at least one (1) year of experience with operational capability to track and report on sales and provide aftersales support to customers with an established CRM/PAYG platform in place
  • Evidence of ability to raise the upfront financing required to implement the project within 6-12 months
  • Evidence of compliance with financial reporting requirements, including audited financial reports and company tax clearance no older than 12 months
  • Only stand-alone solar systems of between 100W and 5kW installed with lithium-ion batteries are eligible
  • Must comply with product quality and minimum service standard; environmental and social management systems; and gender mainstreaming

Subsidy Payment

The UEF will pay 40 percent of the landing cost (CAPEX) for each unit of SSPU deployed up to a pre-determined maximum amount. The grant will be paid in USD.

The grantee will receive approval for grant disbursement once the UEF Programme Manager verifies deployments and connections and final approval is granted by the UEF Advisory Board. Grantees are required to comply with the UEF quality and service standards and provide support to the UEF in arranging verification visits by verification agents.

How to Apply

The UEF implements a two-stage application process (Pre-Qualification and Deployment-specific Application stage). Only Pre-Qualified Applicants that meet the eligibility criteria and application requirements will be invited to take part in the final Deployment-specific Application stage.

The UEF’s administrative processes take place through a secure, web-based IT platform (the “UEF Platform”) that enables transparent application processing, project monitoring, remote connection verification and data aggregation. The UEF will launch a Call for Pre-qualification Application to short-list eligible, pre-qualified companies. Thereafter, the UEF will release the Project Application Collection announcements, which invite pre-qualified companies to apply for a grant for their project.

Email us for more information: UEF@seforall.org

Financing Energy Prosperity

Partnerships

As a perpetual funding entity dedicated to accelerating the transition to sustainable energy worldwide, we're looking to connect with visionary partners who share our commitment. Together, we can make a lasting impact on the planet and ensure a brighter future for all.

Current funding
Our funding goals

$500m

Total Funding

$44m

Current Funding

$456m

Funding Sought


Frequently
Asked Questions

Find answers to commonly asked questions about the programme.

How do will the UEF certify the CAPEX cost?

CAPEX is determined by the actual cost incurred by the applicant to purchase the hardware components. Applicants shall be required to provide evidence of the Landing costs (for imported systems), or the Invoiced prices (for systems sourced locally), including payment receipts in the Claims Report stage of the UEF process.

Are DC solar systems eligible for the UEF SSPU programme

Yes, DC systems larger than 100W and capable of powering productive use appliances are eligible.

Is there a substitute for the ‘cashin- bank' requirement? Can a letter of financial commitment or asset financing agreement with OEM be used in place of available cash balance?

No, there is no substitute for the ‘cash-inbank' requirement.

Where applicable, applicants may in addition also submit a binding letter of financial commitment from financiers or an asset financing agreement with OEM.

What are the timelines for payment of the subsidies?

The 30% Installation Payment will be paid at least 30 business days after deployment and verification of Claims.

The 10% Sustainability Payment will be paid at the end of the Grant Agreement period.

If a company is Pre-qualified for the UEF programme can the same company do a Joint Venture with another company?

Once Pre-qualified, any changes to the approved Company Structure after being pre-qualified must seek further approval from the UEF Advisory Board.

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