Solar developers and investors are rallying on the government to review a package of existing incentives, particularly allowing for installations generating over 50 kilowatts of renewable energy.

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The current provisions, which only allow for installations generating less than 50 kilowatts, not only stifle market growth but also underestimate the role of solar energy solutions in enhancing energy access in the country.

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Several investors voiced the call on Wednesday, December 13, during a major awareness campaign of solar energy in Rwanda’s commercial and industrial sectors.

Organized by the Energy Private Developers’ (EPD) association and Project Development Program (PD), the campaign saw leading private companies in Rwanda share insights into the sector’s achievements, as well as major challenges.

Eder Munyampenda, country manager at Sawa Energy, a regional firm enabling businesses to generate savings on the electricity bill by going solar with no upfront costs, said the lifting of the cap would be "a game-changer” for the industry.

"A game changer would be making sure that the regulatory environment is fruitful for private developers to enter the market.”

He added; "So I think we have a cap size right now of 50 kilowatts in the current regulation. Increasing that cap, and allowing us to deploy bigger systems would be, I think, a game changer for private developers in this space.”

Equally challenging in the industry, Munyampenda pointed out, "Is education amongst consumers. So, when I go to a client, they're very doubtful. Will this work? Will this operate my elevator? So that's one of the biggest barriers is the actual education of the wider public.”

"And it's us, it's our job as players in the industry to educate and to make sure that these solar systems are looked at as viable energy producers. And the third thing is to make sure that you are committed to operation and maintenance because that kills the consumer confidence.”

At Sawa Energy, he said, businesses are offered a chance to go solar at no upfront cost.

"So, what we do is we enter into a long-term agreement with the clients where we give them the system, we own, operate, maintain the system throughout the lifetime of the contract, and we offer them a discounted price to the grid or the EUCL pricing that they're already consuming.”

Hosting an awareness campaign, "is extremely important. I think it's important for people to be in the market, see the market challenges, improve the market, and give people and clients confidence in solar. The sun is hitting our roofs anyway. We are green country, the sun is hitting our roofs, let's harness it, let's use it to go green, but also to provide savings to businesses.”

Munyampenda shared similar sentiments with James Ngugi, Country Manager at Davis&Shirtliff, one of the leading Pan-African energy solutions firms.

"Solar is very critical to us as we participate in the global agenda of highlighting the benefit of renewable energy in terms of the environmental benefits, we all know that the economic benefit for the Rwanda market is just opening up for solar.”

"So, for us, our tagline first of all is improving people's lives and we want to do that with our expertise. We have been in the game for 20 years in Rwanda, but in the group, we are almost 80 years old, and our main business right now is solar, and actually we are the biggest solar module importers in East Africa. So having all the players here, would in essence ensure that we can be able to remove these policies that curtail business like the 50 cap.”

According to Ngugi, the majority of off-takers (clients) who want to make their system renewable, are not successful because of the existing regulatory environment.

"But the good thing, we have just been told by the policymakers that it is something they are reviewing and they can offer.”

"We are present here, all our salespeople are engineers, and we also partner with global partners like Huawei for all the systems we are doing. We need to ensure that we size correctly, we give the right solution and we warranty it.”

For context, Ngugi highlighted that a client can have solar panels at a warranty of 25 years, batteries up to seven years, and the installation system is going up to a year warranty.

Gilbert Ntabakirabose, Renewable Energy Advisor Project Development Program Country Representative, Rwanda, and Burundi, reiterated the need to scrap off the 50kw peak, citing that the move is more cost-effective for off-takers.

"Having this put in place is when we can save a high amount of money.”

Ntabakirabose said that in the quest to scale solar solutions in Rwanda, GIZ provides three services.

The solar efficacy study determines how much carbon dioxide emission is saved, among others.

"We have managed to meet with our targeted audience including policymakers and local developers. And I would recommend that we adopt the use of solar energy in the commercial and industrial sector.”

For Serge Wilson Muhizi, Enegy PrivateDevelopers Chief Executive Officer the time is now to go green.

"And also, here in Africa, we are very lucky that we have the sunshine, which is almost the whole day. So, we have to take advantage of it, because there are other countries from different continents, who can't boast of the same opportunity. That is why we are encouraging people to go green. It's less costly and also more effective and efficient.”

Speaking shortly after the campaign, Mr.Serge Wilson asserted that among the gaps exposed is the lack of awareness.

"So, we still have a very huge gap, especially for the off-takers and the demand side.”

"So that's why we say, let's see how we come up with this kind of campaign and see how we can raise this awareness, especially to the off-takers or the demanding side, and to show that there are available different solutions including a financing model which can accommodate them like leasing from one year to 25 years.”

"So, one of the requests which is coming from this kind of campaign is that the government can put in place a policy framework that can allow the private sector to have the production which is above 50 kilowatts.”

Policymakers weigh in

Speaking to the media on the sidelines of the campaign, Fidel Abimana, Permanent Secretary at the Ministry of Infrastructure announced that the government is working towards introducing a new package of incentives for local developers.

"The campaign comes at the right time because we are looking to gather more information in terms of achievements in the energy sector specifically on solar, where we will be we will be able to get lessons and probably align them in the new strategy that we are now putting together.”

As it stands, Abimana said, access stands at 74.4 percent, with 50 percent coming from the grid and 24 percent off the grid.