Can philanthropy be a catalyst for energy access in Africa?

Spotlight on Solar is highlighting the urgent action needed to achieve universal energy access by 2030 and explores different initiatives which are focused on addressing this challenge.

This week SolarAid’s Fundraising Director, Richard Turner, reflects on the crucial role that philanthropy has to play in enabling energy access for everyone - as The Africa All Party Parliamentary Group (AAPPG) in partnership with the Royal African Society has launched its report Africa’s Just Energy Transition - How Can the UK Support?

Reflecting on the event I attended last week for the launch of Africa’s Just Energy Transition: How Can the UK Support? report, there are three takeaways that stand out for me:

1. For Africa, where 600 million people still don't have access to basic forms of electricity, energy transition means energy access.

1. It was recognised solar could play a role in giving access quickly, especially through stand-alone systems.

1. There is finance out there beyond development aid - but unlocking it requires  increased confidence in the models and projects that are being launched.

Reflecting on these from a SolarAid perspective, the first two - energy access and the role of solar - are a given for us. They are at the core of what we believe in and what we know from our on the ground experience working directly with communities over the last 20 years.

We are already having huge success with stand-alone systems rapidly rolling out access to energy in remote communities. We’re also collaborating with like-minded solar enterprises in other countries to accelerate our learning—check out the REAL (Rural Energy Access Lab) set up by my colleagues in partnership with Easy Solar and MOON .

However, let’s explore this third point further. It was a question from the audience, “what is the role of philanthropy?” with the response from the Chair of the inquiry, Lord Oates - that philanthropy can be an important “catalyst of innovation” - that got me thinking.

Access to finance is complex - but it shows the critical importance of better capturing the evidence of how our programmes can scale to instil confidence in potential investors, and other means of financing.

However, when it comes to the role of philanthropy, I couldn't agree more. It’s philanthropy that provides the bedrock which enables SolarAid to innovate. It allows us to take risks to develop ways to reach those who have no access to electricity with affordable business-based solutions in the remotest of places.

Delivering Energy-as-a-Service using stand-alone solar systems in Malawi

This was an idea focused on how to reach 100% of the remote community of Kasakula with affordable energy - where 97% live below the poverty line. Energy access was at the forefront of SolarAid’s thinking from the beginning - and not just more access - but 100% access.

Working with the community, building on past learnings, we took an existing technology - stand-alone solar systems (solar home systems) and adapted it for a service model. So instead of households having to buy the system over instalments - which just isn’t affordable in this community - we install the systems at no cost to the customer. Households pay for the energy they use at a price they can afford (which has been determined with the community). This is less than the cost of candles or endless torch batteries commonly used. It’s essentially the same model most people around the world have for using energy in our homes.

With these payments the customer pays for the ongoing service of the systems. This means the customer doesn’t take the risk - but also the service provider (in this case SolarAid) has funds to pay for maintenance and ongoing service. 

This idea, developed with the community, was effectively enabled by philanthropy. Initially with one funder, The Turner Kirk Trust , gave us, in their words, “permission to fail”. And then as we improved the concept, we stepped up from 500 households to 2,500 - learning at each stage (for example we didn’t anticipate the issue of rats chewing through the cables!). And now several years on, we are set to reach all 8,000 households in Kasakula (actually 8,813 to be more precise) aiming for 100% energy access.

Financing 100% energy access

At each stage, our financial needs to scale-up increased. Funders needed more evidence - which we were able to provide from the data we captured. In total £1 million was raised from twenty funders including trusts, foundations, corporates, multilateral funds, and yes, individual philanthropists  — which unlocked much of the other funding.

So now we’ve worked with partners attempting the same approach in other countries so we can learn together and share a business model that delivers affordable energy to the poorest. 

In terms of funding, we have had some great learnings along the way too: 

• Start with the community and understand their energy needs, as this also gets their buy-in which will be critical for ongoing sustainability of any solution. This in turn is a great starting point for engaging potential funders willing to support the initial idea.

• Leverage philanthropy to fund the start-up riskier elements and as you progress begin to engage funders who require more evidence. Usually the more people involved in making a decision the less risk they seem to take! This enables smaller donations and grants to have a significant impact in attracting larger grants further down the line.

• Invest time and resources in capturing your learning and data. This is very valuable for feeding back and engaging further funders alongside your own use and of course proving to stakeholders what is possible.

This is not traditional aid in action. It’s “SolarAid”. What we have here is a scalable solution which as a result of the micro payments by customers and high usage will not need to rely on aid funding to sustain year-on-year - just some initial financing to get it going.

Perhaps the biggest step has yet to come: Showing potential investors in energy access in Africa that we can demonstrate a scalable solution that has immediate impact on people’s lives, while creating the right mechanisms to support their involvement. 

In presenting the report, the Co-Chair of the Inquiry, Lord Oates, reflected on his own time as a teacher in a school in Zimbabwe. He recalled the pupils’ eagerness to learn and how many of them had the word “ZESA” written on their books (the Zimbabwe Electricity Supply Authority) because they knew electricity was essential for their education. Our experience is no different - when a solar system is installed in a home, the children rush to find their school books to read by solar-powered light. 

It comes back to the core point: a just transition for Africa means energy access for all.

In a follow up remark to the question about the role of philanthropy, the Chair of the Inquiry suggested that we should convene a gathering of philanthropists interested in accelerating energy access across Africa. In my opinion that would help drive further innovation to develop solutions that reach those that will benefit the most. 

To those who have helped get us this far, thank you, and for those who will help us scale the challenges ahead of us we look forward to working with you to ensure we reach everyone. 

Richard Turner , Director of Fundraising, SolarAid

Video: All questions answered with John Keane, SolarAid CEO

What does 100% mean for SolarAid? We invited our supporters to send in their questions, and then we sat down with SolarAid CEO John Keane to answer them. This resulted in a powerful conversation that dives into why rural electrification needs to be prioritised, what’s next for SolarAid, and how our 100% idea is reshaping our mission.

Article: Borgen Magazine: SolarAid: Creating Jobs and Power in sub-Saharan Africa

Are broken solar lights just waste—or an opportunity? This great piece by The Borgen Project, highlights how community-led solar repair is sparking sustainable change by not only reducing e-waste in sub-Saharan Africa—but by creating jobs, supporting local Repair Technicians, and restoring access to light for thousands of families.

Job Opportunity: Director of Finance and Organisational Effectiveness, SolarAid

Are you an experienced finance specialist looking for a new opportunity to make sustainable impact? We're hiring a Director of Finance & Organisational Effectiveness at SolarAid—a strategic, hands-on role at the heart of our mission to deliver safe, clean and affordable light across sub-Saharan Africa. Deadline: May 23rd.

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