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Research: Crowdfunding boosts solar uptake

By James Wanzala | Published Mon, August 7th 2017 at 00:00, Updated August 6th 2017 at 19:34 GMT +3
Crowdfunding photo:courtesy

A new study has highlighted the importance of crowdfunding in raising finance for energy needs around the world.

Energy 4 Impact's latest instalment in a series of reports from its Crowd Power Program on energy access-related crowdfunding in sub-Saharan Africa and Asia said the strongest growth has been identified in debt and equity crowdfunding. 

The Crowd Power: Can the Crowd Close the Financing Gap? Gap report examines the role and use of crowdfunding by start-ups and non-profits raising capital.

The study found that debt crowdfunding by enterprises, mostly those selling pay-as-you-go solar home systems, grew strongly in 2016 and raised more than $2 million (Sh207 million) across 26 loans, representing a 10-fold increase on those made in 2015.

The report suggests that debt crowdfunding is the most scalable method for off-grid energy space.