New blockchain crowdfunding platform to launch for solar in Africa

Energy Web and ENGIE Energy Access are launching ‘Crowdfund for Solar’ to fund clean energy projects in sub-Saharan Africa.

The platform built on Energy Web’s open source technology stack is aimed to provide low cost finance for the deployment of solar home systems to communities across Africa and will allow participants to stake Energy Web Tokens (EWT) in exchange for a fixed return.

ENGIE Energy Access is a leading provider of solar and mini-grid solutions in Africa, with delivery of renewable energy to 7 million people across nine countries to date.

Still around 621 million people lack access to electricity, particularly in the remote and rural areas across the continent, which has abundant solar resources.

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In the announcement of the platform development, Stefan Zelazny, Head of Software and IT at Engie Energy Access and previously CIO at Engie Mobisol, expressed his excitement to bring crypto-based decentralised finance to rural electrification in Africa.

“We believe this can accelerate much-needed clean energy deployment throughout the region by connecting impact-oriented investors with unbanked rural customers,” he said.

The crowdfunding will be launched on May 3 2022, for a two-week pilot period, with an investment target of $100,000 to show proof-of-concept. If successful, it will be scaled up.

With the funds raised, ENGIE Energy Access will deploy its solar home systems to those in need of energy in countries across sub-Saharan Africa and in particular in countries such as Rwanda and Zambia, where electrification rates are particularly low.

The initial stake funds the solar installation, which is then paid back under a lease-to-own model, paid for in affordable installments at a lower daily installment rate than would otherwise be possible.

For their part, stakers will receive Solar Loan Tokens (SLTs) in exchange, a proof token that can be exchanged or transferred separately. In one year’s time, stakers will have the opportunity to exchange their SLT back for a 10% return on their investment.

In addition to working with the energy deficient communities, Crowdfund for Solar will aim to prioritise women among the recipients, with the target of at least 30% of the loans going to women-led households.

Once the pilot period finishes, a full report will be published on the outcome of the financing, with verification provided for the demographic target for the loans.

The concept of crowdfunding is now well established and Crowdfund for Solar joins a growing number of such blockchain-based platforms, with others including the South Africa based Sun Exchange and the The Peace Renewable Energy Credit scheme.