Frequently Asked Questions on Solar Home Systems
There is no capacity ceiling as it is dependent on customer demand.
- Only systems deployed after signing the Agreement between REA and the grantee will be considered.
4. Minimum requirement of 150 systems: Concerns were raised on the minimum requirement of deploying 150 SHS to qualify positing that there are cheap sub-standard products in the market which are competitive. Hence, the cost of meeting the requirement is high. In light of this there were suggestions that the REA and the WB should reconsider the requirement; secondly the REA should spearhead the regulation of SHS systems in the market?
Standard Organisations of Nigeria (SON) is in the process of adopting a global standard on SHS. The 150 system monthly sales (on average) is the absolute minimum. The company can become eligible to apply for the OBF once they begin averaging 150 or more for at least 6 months
The maximum time is 4 weeks.
The timeline for MSCF is quarterly and for OBF it is based-on a verification timeline that will depend on the completeness of the customer data submitted.
The qualification is valid for the 5-year period
- The programme was not designed for new entrants to the market and not the right tool for start-ups. However, there will be technical support for start-ups and company development down the road.
Systems deployed in both rural and urban areas will be considered.
To the extent that the company is the service provider then this company is eligible to apply to the program.
There is a Quality Assurance Framework and an IVA in place to carry out evaluations.
The disbursement will be in Naira however, the devaluation of the naira will be considered as a case for revising the grant threshold amounts
Companies will be considered for an invitation to apply for MSCF based on track record and relatively ambitious company profile/ business plans. Read more on the REA website SHS program.
The grant will need to be tailored to improve efficiency and expand business operation of the company and not as a subsidy to the customers. Verification agency will also gather data on pricing and any companies found to be engaging in predatory pricing will be dismissed from the program.
Registration is done once however disbursements will be on until the grant is phased out.
Technically the company can decide what payment method to accept but the sustainability of such a business strategy would be highly doubtful