SeeNews Renewables — Kenyan solar power firm M-Kopa Solar has raised KES 2 billion (USD 19.5m/ EUR 17.9m) to fund its expansion of product range and international operations.
The financing round was led by London-based Generation Investment Management LLP and others in December.
“With 1.3 billion people currently off-grid, M-kopa’s innovative model means that modern solar-powered appliances can be made affordable to a huge new market. In addition to attractive long-term financial returns, this brings clear climate advantages and financial savings for low-income customers,” Colin le Duc, Partner at Generation Investment Management, commented on the investment.
M-kopa makes solar home systems affordable to low-income households on a pay-as-you-go installment plan. Customers pay a deposit of USD 30, followed by 365 daily mobile money payments of USD 0.50, or less than they would normally spend on kerosene fuel for lighting. After completing the payment plan, customers own their systems and can also upgrade for more power.
In just three years since commercial launch, M-kopa has connected more than 280,000 homes in Kenya, Tanzania, and Uganda to solar power and is adding over more 500 homes each day. The company is on track to reach its initial target of one million homes in East Africa by end 2017.
SeeNews Renewables goes beyond the familiar renewable markets of Western Europe and the US to encompass the potential of BRIC counties and emerging investment destinations in North Africa, the Asia Pacific, Central and Eastern Europe. SeeNews Renewables is covering all renewable energy sources: wind, solar, hydropower, biomass, geothermal and marine energy.