Solar Rural Electrification

In the mid-1990s, TC+ES developed project investment briefs, financial pro formas, and carbon offset assessments for the non-profit Solar Electric Light Fund (SELF) for solar rural photovoltaic (PV) electrification projects in Sri Lanka, India, and China. These briefs and assessments later helped SELF develop a for-profit spinoff, the Solar Electric Light Company, Inc. (SELCO). Both SELF and SELCO promote the use of solar home systems in developing countries. SELCO, based in Washington, DC, focuses on commercialization of PV-based home solar systems in countries around the world. TC+ES’s work products for SELF and SELCO have included:

Carbon offset investment briefs for PV projects in China, India, and Sri Lanka to support financing and installation of household PV systems.

Representing SELCO’s projects as part of an administrative power plant siting proceeding, resulting in formal approval of SELCO’s project as a source of offsets.

Procurement of USIJI approval of SELCO’s Sri Lanka Solar Rural Electrification Project.

Developing alternative financing structures for a variety of credit financing schemes to make PV systems affordable.

Detailed spreadsheets for use by potential carbon offset investors in US dollars and the appropriate local currency showing financial pro formas.

Large-scale deployment of solar photovoltaic (PV) electricity-generating systems for residential and small commercial applications can address a portion of developing countries' rural electrification and sustainable development objectives. Unfortunately, the cost of PV systems remains relatively high. Carbon offset funding can provide an alternative; the barrier of high up-front costs associated with PV systems can be overcome through affordable loans and interest rate subsidies, making it possible for a much larger proportion of rural populations to take advantage of this technology. The unmet demand for electric services in rural areas around the world is enormous, and the ancillary benefits of projects like these are compelling (reducing fire risk and radically increasing the quality of lighting available to school children and home based enterprises).