Tontine: Self-help financing for solar home systems

Tontine: Self-help financing for solar home systems

Boucar Diouf has an article in the latest edition of Renewable Energy exploring the financing of solar home system programmes in Senegal via self-help financing systems.

Abstract

The main limitation for a consistent expansion of rural electrification in developing countries is financial. In this paper we propose a new method of financing to access solar home systems for poor rural areas of developing countries. We use the concept of Tontine that is a traditional self-help organization that can provide funds without guarantees or interest, to give access to electricity to those who could not otherwise.

We have developed low cost solar home systems presented in this paper to embody our proposition. We have as well started a pilot project in Senegal. We present two basic forms of self-help associations that have saving and lending as a primary or sole function, Rotating and Accumulating Savings and Credit Associations, respectively under ROSCA and ASCRA acronyms. We have built and proposed two solar home systems in ROSCA scheme in this paper.

System 1 features two 5 W LED lamps and a mobile phone charger.

System 2 is smaller, it is based on recycled mobile phone batteries, it powers a 5 W LED lamp.

In the pilot project, the tontine for system 1 is taken on one year period while system 2 is given on 5 months basis.

Keywords Tontine; Financing; Rural electrification; Solar home systems

For access to the full paper (for subscribers) see: Tontine: Self-help financing for solar home systems

This is the main admin account for the LCEDN and we use it to manage both the main LCEDN site and the USES network site.

Related articles:

Submit your comment

Post Comment