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Until recently, the only source of lighting in Maurice Kamau’s home was a single kerosene lantern, which flickered with every breath of wind and cast ghostly shadows across his mud-walled shack in Nakuru County, Kenya.
Power lines are 3 kilometres from Kamau’s village, which means electrifying his house the usual way would be prohibitively expensive.
“That meant my family had to do with no TV, no proper lighting, and none of those conveniences that come with electricity,” the 76-year-old Kamau recalls. “Even charging a phone meant traveling long distances to reach a power source.”
Everything changed two years ago when a company offered Kamau and his neighbours a hire purchase plan for off-grid solar equipment, removing the hefty upfront cost burden.
Kamau took up the offer and became the proud new owner of a 300-watt solar panel, a battery, an inverter, and various fixtures, including sockets and wires. The total cost was KSh90,000 ($690).
“I made a down payment of KSh10,000 ($77), while the remainder has been spread out to small instalments of KSh2,200 ($17) over 36 months,” Kamau told The Progress Playbook. “This was the only way I could install solar, as I couldn’t have raised the whole amount in one go.”
Solar energy is becoming a viable and practical option for many households in far-flung areas. Even if they can access the national grid, power prices are unaffordable for many, at roughly KSh24.60/kWh ($0.19/kWh).
Straddling the equator, Kenya receives an abundance of sunshine in most places throughout the year, making it an attractive market for solar investors.
However, it’s early days yet. According to data collated by research group Ember, solar accounted for just 4% of Kenya’s power generation in 2023. That compares with 17% in the Netherlands, which receives considerably less sunshine.
To facilitate greater uptake of solar power, the Kenyan government has exempted solar equipment from import duties.
Combined with the rise of innovative financing mechanisms, this is helping to expand access to electricity, particularly in rural areas.
However, challenges remain. A study by the University of Nairobi found that households that take on solar financing plans often struggle to make their monthly payments, and this has been exacerbated by the economic impact of Covid-19 restrictions.
Still, the off-grid solar market is advancing rapidly. In the second half of 2023, 1.2 million solar energy kits and appliances were sold in Kenya, according to a report by GOGLA, a global association for the off-grid solar energy industry. That’s a 17% increase from a year before.
Those figures include sales of solar-powered lanterns that come with phone charging ports. These appliances are mostly financed under pay-as-you-go schemes, GOGLA’s data shows.
“Kenya is the most mature market for plug-and-play off-grid solutions and has become the largest market overall, surpassing India in 2019,” the association says.
