As Uganda continues to lead the way for solar deployment in East Africa, U.S. company Fenix reaches a fresh landmark of 60,000 leases of its flagship product, ReadyPay Power, in the country. Fenix, the largest provider of off-grid home solar in Uganda, is able to distribute these residential solar systems to people in Uganda that previously did not have a regular source of power.
The companys leasing system for the ReadyPay Power units in Uganda works by obtaining a small deposit from the customer, then getting the remaining cost of the system through monthly payments, which last between 18-24 months. The total cost of the system is approximately $200.
The 60,000 leases that Fenix has signed in Uganda have a total approximate value of US$11 million, of which $5.7 million has so far been paid back. Perhaps more importantly, they have managed to bring power to an estimated 300,000 Ugandans who didnt previously have regular access to residential electricity.
Our success to date demonstrates the incredible demand for ReadyPay and the robustness of our financing platform, said Lyndsay Handler, CEO of Fenix International. First, we are bringing clean, affordable power to replace expensive and dangerous kerosene lanterns. Second, customers build a credit history that allows us to provide additional financing for solar system upgrades and other life changing products and services.
Fenixs commendable solar scheme is one way for Uganda to meet a proportion of its growing energy demand. There has been a particular increase in demand in recent years, as growing numbers of the population are moving from lower income brackets to middle income.
To increase power capacity within the country, Uganda has been exploring the potential of renewable energy and has developed the GET FIT support scheme for renewable energies. In March of this year, construction began on the first solar plant to be developed under this scheme, a 10 MW PV plant in Soroti. It is expected to be connected to the grid in July 2016, which will make it the biggest PV plant in East Africa.