Off-Grid Prepaid Solar Leasing Project

A debt facility of up to $6 million using third-party donor capital from the ADB-administered Clean Technology Fund (CTF) to Simpa Energy India Private Limited to allow the company to expand its deployment of pre-paid off-grid solar home systems in the state of Uttar Pradesh (UP), India. Simpa is an early-stage energy-access company providing solar-based energy solutions to rural customers who either lack access to electricity or receive only a few hours of electricity from their grid connection each day. The company has received early stage funding from venture capital investors and is showing year-over-year revenue growth. In 2013, ADB made a $2 million investment in Simpa for a stake in the company. Simpa''s customers make a small down payment for a solar photovoltaic (PV) home system and subsequently pre-pay for daily energy service, topping up their systems in small user-defined increments via SMS. Each payment also amortizes the final cost of the system. Once fully paid (typically 2-3 years after initial purchase, depending on the payment plan) the system unlocks permanently and continues to produce electricity for the customer without any further payments (essentially a lease model). This transforms recurrent energy expenditures (that would otherwise be spent on kerosene or candles) into an asset purchase. Simpa has reached over 13,800 customers by end of July 2015 through a distribution network of 9 branches.