Kenya’s M-KOPA Solar this month received USD 80M of new commercial financing, most of it in local currency, the largest debt financing deal to date in the PAYGO off-grid sector. The money will be used in the next three years to help finance solar installations in one million homes in East Africa on top of 500,000 already connected.
Kenya has helped enable pay-as-you-go (PAYGO) solar companies such as M-KOPA Solar which are providing basic electricity to over a half-million households at a fraction of the cost of traditional electric grid projects. Among the reasons for Kenya’s PAYGO success: a robust mobile phone/mobile money market that enables households to finance their solar systems; ready access to foreign exchange, a relatively stable local currency; and relatively simple procedures for importing solar equipment.
M-KOPA has also secured USD 25M in USD debt from responsAbility, Symbiotics, and Triodos Investment Management.