How solar energy is transforming lives in Kenya

For years, Peter Lesuuda was among rural Kenyans who spend over Sh86 billion a year on kerosene to light up their homes.

“I kept hoping that electricity would finally connect my home in Ol Moran, Laikipia County,” he says.

Tired of waiting, Mr Lesuuda bought solar equipment worth Sh35,000 in February last year. “I’ve not gone without light since. The system powers my two-bedroom house, a 21-inch television, and a radio.”

This year, Mr Lesuuda has bigger plans. “I have saved Sh90,000 for a submersible solar water pump to start irrigation farming,” he says.

According to Mr Norman Chege, a solar manager at Davis and Shirtliff, a borehole submersible solar pump costs Sh140,000. “The solar pump is designed based on the distance of pumping and the required amount of water for irrigation,” says Mr Chege.

A smallest system costs about Sh40,000. “This includes the solar pump, solar panels, and installation accessories,” he says. Small-scale farmers can have a tailor-made system.

A solar system able to power at least six bulbs, a TV, and a radio would cost about Sh30,000 while a small 160-litre solar water heating system attracts Sh100,000.

SUSTAINABILITY

According to Mr Canary Njihia, a solar engineer at World Vision, affordability, reliability, and sustainability of solar energy has gained popularity among consumers. Money found out that the cost of solar lighting kits ranges between Sh3,500 and Sh140,000, depending on the type and capacity of the equipment.

Other products that have gone solar include lanterns, torches, cookers, and fridges.

According to Mr Simeon Ogonda, an expert at JuaLight Solar Company, 841 solar lanterns have been distributed in Kwale, Kisumu, and Makueni counties.

“We design the solar lanterns and distribute them at a subsidised cost to low-income earners who have been using kerosene,” says Mr Ogonda.

A survey done by mobile technology startup, M-Kopa Solar, found that off-grid low-income earners in Kenya use at least Sh50 a day on paraffin. With small and medium enterprises such as JuaLight coming up to supply cheap energy, the uptake of solar has attracted financiers looking to boost adoption of the green technology.

In February this year, M-Kopa received a Sh1.72 billion loan from the Bill and Melinda Gates Foundation and the Commercial Bank of Africa to light off-grid low-income rural homes. Underlying the importance of solar energy, the loan from Bill Gates is the first debt to an enterprise in Africa.

The M-Kopa solar system consists of a panel, two light bulbs, one portable light, a mobile phone charger, and a radio. According to Jesse Moore, M-Kopa’s managing director, the company is currently connecting over 1,000 homes with solar power every week. Buyers pay Sh40 a day for a small home solar kit after making a Sh2,500 deposit through Safaricom’s M-Pesa and Sh50 a day for a bigger kit on paying a Sh2,999 deposit.

The payment period for the products is one year.

“At a Safaricom outlet, a buyer will get a solar kit and a SIM card. The line enables the buyer to send Sh40 a day via M-Pesa, down from Sh50, using ordinary lines,” says Mr Moore. Buyers can make monthly or daily payments.

In rural areas, many people have chosen solar due to its one-off payment compared to electricity. “The advantage of high capacity solar equipment is that it only requires a one-off payment, unlike the electricity grid,” says Mr Njihia.

According to Kenya Power, consumers situated close to electricity grids and whose total connection cost is less than Sh135,000 pay Sh35,000. Consumers in farther locations pay more.

Take Ms Josephine Machio, a resident of Eldoret, for example. “I wanted to get connected to the electricity grid but I realised that solar was a better alternative,” she says. “My electricity connection required Sh75,000. I could use the same amount to get high capacity solar equipment.”

Fluctuating monthly electricity bills are also pushing people to adopt solar power. “Many homes in urban areas have been buying solar water heaters and panels to cushion them in the event of power loss,” says Mr Njihia.

BACKUP SYSTEM

Mr Anthony Wang’ondu, a resident of Nairobi’s Lavington area, has installed a solar hot water and power backup system at his home.

For Ms Milkah Atieno, a grocery vendor in Kangemi, Nairobi, going solar was purely for business purposes. “I have a small kibanda (stall) which I used to close at 6.30pm due to lack of light. I tried candles and a kerosene lamp, but this ate into my proceeds,” she says. “After saving Sh9,000 and acquiring two solar lanterns, I now close business around 9pm. The light is sufficient.”

She now makes an extra Sh3,000 profit every month since March, she told Money.

“The price of solar lanterns has been about Sh3,500 for a while now,” says Mr Chege.

According to Mr Hassan Collins, a solar expert in Nairobi, a high capacity solar lantern costs about Sh11,500. Between 2008 and early 2014, the price of solar energy has dropped from Sh430 per megawatt to about Sh60. “This has been due to reduction in production costs, new technologies, growth of production capacity, improved cell conversion efficiency, and competition in the industry,” says Mr Chege.

Kenyans can save a lot on energy by embracing solar. “For instance, 60 per cent of domestic electricity goes to water heating. If we all installed solar heaters, we would cut the costs by 60 per cent,” notes Mr Chege.

Going forward, consumers are likely to earn from solar investments in less than two years. Money has established that players in the industry are pushing for a net-metering connection between solar and the electricity grid.

“We do not have regulations on solar lighting systems, especially on hooking to the national grid, known as net-metering,” notes Mr Chege. “Once such a connection is possible, consumers will sell excess solar energy to Kenya Power.”

Net-metering would allow users to have a meter that runs both electricity and solar power, as it happens in developed countries such as Germany.

An increasing number of rural Kenyans are reaping the benefits of adopting solar energy. For instance, more than 35,000 people in Solai and Mbogo-ini villages in Nakuru County are using solar-powered water pumps.

“The boreholes are 200 metres deep and the pumps fill 100-cubic-metre storage tanks situated 1.6 kilometres away. The water is then distributed to residents within an eight- to 12-kilometre radius,” says Mr Njihia.

This is replicated in Wamba, Turkana County, where a secondary school has been enjoying power from a five-kilowatt solar system. “It lights 144 energy-saving bulbs in the classrooms and dormitories, a laboratory with 18 desktop computers, three offices, four staff houses, and powers a 1.5-kilowatt submersible pumping system,” says Mr Chege.

In Samburu County, 1,000 acres have been set aside for the installation of a solar water pump system.