Rwanda’s Renewable Energy Fund Project has been highlighted in a new World Bank report for its approach to affordable financing and expanding access to off-grid solar energy. The Off-Grid Solar Market Trends Report 2026 was released by the World Bank Group’s Energy Sector Management Assistance Program (ESMAP) and GOGLA, the global off-grid solar association, at the Global Off-Grid Solar Forum and Expo in Kigali on October 27. ALSO READ: Inside plan to buy solar power from households The report says Rwanda and Nigeria incorporated gender-specific delivery channels, targets and incentives into their programmes from the start, enabling them to reach women at scale. Rwanda’s Renewable Energy Fund Project channelled subsidies and loans through local savings and credit cooperatives, reducing barriers for female-headed and low-income households. The project aims to connect at least 445,000 households to solar energy, benefiting about 1.8 million people. Its $15 million subsidy window seeks to make solar home systems more affordable for households without access to the national grid. “Women accounted for 52 per cent of the project’s beneficiaries, received more than a third of its loans and held 45 per cent of the off-grid solar jobs created,” the report says. The report also highlighted Rwanda’s approach to results-based financing (RBF), which links financial support to the achievement of agreed results. ALSO READ: Rwanda’s electricity access rose from 1% to 83.2% in three decades It cites Energising Development (EnDev), a multi-donor programme supporting energy access in Rwanda, which shifted from fixed subsidies based on product categories to subsidies targeted according to households’ poverty categories. “The government subsequently scaled up this approach through the Renewable Energy Fund,” the report says. The fund is also cited among World Bank-backed credit lines that incorporate foreign-exchange risk mitigation by matching local-currency loans with revenues earned in the same currency. Armand Zingiro, state minister for infrastructure, commended World Bank’s ESMAP for supporting efforts to accelerate electricity access across Africa. “Energy is fundamental to economic transformation. It enables businesses to grow, farmers to increase productivity, children to study, and health facilities to deliver essential services. Yet, approximately 600 million people worldwide still lack access to electricity, the majority of them in sub-Saharan Africa,” he said. Business models and maintenance The report examines changes in off-grid solar business models in Rwanda and Tanzania. Off-Grid Electric, later known as ZOLA, adopted a rent-to-own model in both countries because customers preferred ownership and servicing widely dispersed assets reduced profits. Bboxx also replaced its 10-year hybrid service model in Rwanda with a pay-as-you-go (PAYG) approach. “Rwanda’s rural electrification plans have included off-grid solar for more than a decade,” the report says. ALSO READ: Rwanda mulls generating 200MW from solar energy As solar equipment ages and failures become more frequent, the government is considering battery replacement schemes and exploring requirements to make batteries easier to replace in future programmes. Rwanda is also among six countries where Extended Producer Responsibility (EPR) regulations for the off-grid solar sector are emerging. The others are Nigeria, Uganda, Zambia, Malawi and Kenya. Rwanda is among 35 sub-Saharan African countries included in the report’s Regulatory Indicators for Sustainable Energy (RISE) policy analysis, which covers 42 countries in total. The report says that globally, the number of people using solar home systems, water pumps, generators, lanterns and other off-grid solar products rose by 26 per cent over two years, from 118 million to 149 million. Off-grid solar remains the least-cost solution for at least 398 million people without electricity and complements national grids by serving communities beyond their reach. Among surveyed customers, 95 per cent reported that their solar home systems remained functional four or more years after purchase. Rwanda aims to achieve universal electricity access by 2029. By the end of July 2025, the country’s electricity connectivity rate had reached 84.6 per cent, comprising 59.6 per cent grid connections and 25 per cent off-grid connections, mainly through solar systems, Zingiro said.
