Rwanda's Ignite has Afrika's most affordable price plan for solar power according to a Sendea report. At only $4 a month per home with no down payment, Ignite has also managed to become the largest rural utility in Rwanda in less than a year.
At the $4 a month price point, the price plan exponentially increases the addressable market for Solar Home products in Afrika.
Ignite Solar Home Installation.
"We completed phase 2 of 'Ignite Rwanda' project. With a network of 1,600 installers, operational efficiencies and economies of scale, we can make home solar more affordable than ever before. The launch marks the commencement of phase 3, on track to achieve our goal of 100% Clean Access," said Yariv Cohen, Chief Executive at Ignite Solar.
In recent years, the price of solar has been dropping. Solar home systems in Afrika, however, have not followed suit, mainly because companies have found it difficult to reach scale and secure local financing. Ignite's new price plan, should it be able to be replicate it across the continent, could see it bring hope to the approximately 700 million people without access to power in Afrika.
"We are excited that local commercial capital is mobilizing towards the Solar home sector. This indicates we are moving from niche financing to mainstream capital. We expect this to continue, lower the cost of capital further and enable us to provide even more value to our clients," said Angela Homsi, CIO at Ignite.
The Ignite Solar Home product is said to be affordable for 80% of Rwanda's population.