SolarNow attracts $2 million loan facility to accelerate distribution of solar home systems in Uganda

Through this business model, they can ensure that high quality solar be available to low income households. SunFunder has designed a Structured Asset Finance Instrument (SAFI), which allows SolarNow to finance its fast-growing portfolio of payment plans in Uganda.

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    On 9th May, 2016 SolarNow announced a new $2 million loan facility from SunFunder. SolarNow is a solar distributor in Uganda that makes solar affordable through a 24-month payment plan. Through this business model, they can ensure that high quality solar be available to low income households. SunFunder has designed a Structured Asset Finance Instrument (SAFI), which allows SolarNow to finance its fast-growing portfolio of payment plans in Uganda.

    SunFunder began lending to SolarNow in 2013 with small, crowdfunded inventory loans. Through these initial loans, SolarNow established a repayment track record that helped enable SunFunder to unlock capital from accredited investors for larger and longer-term loans needed to match SolarNow’s growing working capital needs. In 2015, SunFunder extended facilities totalling over $800,000 of loans to SolarNow. The new SAFI facility builds on SolarNow’s strong track record in sourcing high-quality customers and extending credit on appropriately sized solar home systems based on customers’ energy needs and their ability to repay. The facility will scale SolarNow’s capacity to build and service such customers with contract terms in the future and multiply the positive impact SolarNow can make in the region.

    “SunFunder has been a fantastic partner throughout this process,” said SolarNow’s Managing Director Willem Nolens. “With this financing in place, the board and management believe our business is now well placed to accelerate our growth in Uganda and beyond.”

    “The launch of SAFI marks a new chapter in our long-standing relationship with a top-quality solar company,” said Audrey Desiderato, SunFunder’s Co-Founder and COO. “Starting with small crowdfunded inventory loans in 2013, we provided larger working capital facilities funded through our Solar Empowerment Fund. The launch of SAFI marks a next step in our relationship and aims to efficiently deliver scale. We are proud to announce this market-leading transaction with SolarNow and play an important role in their continued success in the market.”