Over 100 reap benefits of NSCL’s Solar Home System Project
March 30, 2024 3:26 am | Posted in Business News | Share now TwitterFacebook
By Doddy Morris.
More than 100 clients of Navara Savings and Credit Cooperative Society Limited (NSCL) are reaping the benefits of its innovative Solar Home System Loan & Subsidy Project across Vanuatu’s six provinces.
NSCL’s Interim Chairman, Charlie Namaka, said a major number of these clients are not members, with many being workers under the Regional Seasonal Employer (RSE) scheme and Seasonal Worker Programme (SWP). These workers often learn about the project when purchasing solar products at NSCL-authorised outlets in Port Vila.
Since its inception, NSCL has granted approximately Vatu (VT) 93 million (930,000 USD) in loans to both members (since 2009) and non-members (since 2021).
Alex Ralph, the NSCL Treasurer, explained that there are two primary ways to participate in the program: through a direct loan for purchasing the system, which the client then repays, or through a subsidy where NSCL funds 16% of the cost.
“For the total cost of a solar system, the client pays 84% while we cover the remaining 16%. For those with two loans, we fund 20% and the client pays the remaining 80%,” he said.
The demand for the Solar Home System Loan & Subsidy Project has surged, particularly among business houses in remote areas.
During a recent trip to the Transforming Energy Access (TEA) Forum in Kigali, Rwanda, from March 12-14, 2024, NSCL shared insights from their partnership with the Pacific Community (SPC), which provided a grant of VT6 million (approximately 50,000 EUR) to support the project.
The grant, disbursed in three tranches over a period from October 1, 2021, to September 30, 2023, is aimed at subsidising Solar Home System (SHS) products listed in the National Green Energy Fund (NGEF) catalogue.
NSCL has signed agreements with three locally registered solar vendors to implement the solar subsidy program, targeting clients in off-grid areas of Vanuatu, including entrepreneurs and existing businesses.
Over the two-year project period, NSCL has disbursed the first two tranches of the fund, allocating 87% directly to subsidies and retaining 13% as an administrative fee.
This initiative has generated significant co-financing from clients, totaling 170,000 USD.
The project has already made a considerable impact, serving 61 out of 100 beneficiaries, with a distribution indicating 67% male and 30% female participants, and 3% consumer cooperatives.
Among the entrepreneurs, 72% have benefited from the program, and existing businesses have seen a 50% benefit rate. The project has led to the sale of 47.31 kW out of a potential 27.5 kW, demonstrating robust interest and uptake.
However, the project has faced challenges, including delays in bank transfers and disruptions due to COVID-19 restrictions, which affected the import of goods and site installations by solar vendors. Despite these obstacles, NSCL is committed to continuing the solar subsidy program, with plans to invest an additional VT2.1 million to reach its objectives.
Future recommendations include incorporating energy-efficient appliances into the program.
As NSCL moves forward, it aims to continue the SHS Loan component in partnership with NGEF and solar vendors, alongside the recruitment of loan officers and the procurement of an accounting system, as well as they want to look at both the aspect of safe water accessibility and low affordable housing.
