Starsight gets US$20 million boost for C&I projects in East Africa

  • The Global Climate Partnership Fund (GCPF), managed by responsAbility Investments AG, and the Dutch entrepreneurial development bank FMO are investing USD 10 million each in renewable energy company Starsight Premier Energy Finance (SPEF).
  • The two investments will support commercial and industrial solar projects in East Africa and thus reduce CO2 emissions.

In Kenya, industrial and commercial enterprises pay high grid tariffs ranging from USD 13-20 cents per kilowatt hour of electricity1. Thanks to its innovative lease to own model, SPEF offers commercial and industrial clients in East Africa the opportunity to lease a solar photovoltaic system for 12-15 years after which the system is transferred to the client. The monthly lease payment includes the lease amount for the system, maintenance, insurance, and spare parts. This allows the client to generate their own electricity for about USD 6-8 cents per kilowatt hour.

Related news: JinkoSolar launches new N-Type solar panel technology in Nairobi

Cutting electricity costs by up to 60%

For manufacturers SPEF also offers an Asset Finance structure which allows clients to take advantage of certain investment allowances and further reduce the cost of their own generated power to as low as USD 4 cents per kilowatt hour. Rupesh Hindocha, CEO, SPEF says: “Thanks to our financing models, our customers usually save 35-60% in electricity costs compared to their local electricity provider. We are honoured to have received this investment from GCPF and FMO which will help us scale up our C&I solar PV business across the region. Together we are driving the energy transition in East Africa.”

Author: Bryan Groenendaal

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