Swedish-Kenyan renewable energy firm Miale Solar Inventions has secured a €5 million (about Sh750 million) loan from Hivos-Triodos Fonds to finance 9 megawatts (MW) of solar power installations in Kenya, targeting businesses and institutions seeking alternatives to grid electricity.
The financing, arranged in partnership with Swedish crowdfunding platform Trine, will support rooftop and ground-mounted solar projects, with the company using the funds to expand installations and finance customers who cannot afford the upfront cost of solar systems.
The investment will support Miale Solar's power purchase agreements (PPAs) and solar lease arrangements, under which the company finances, installs and maintains solar photovoltaic systems while customers make regular payments over long-term contracts.
The financing is intended to help the company take on projects as they arise, reducing its reliance on arranging funding for individual installations.
Miale Solar chief financial officer Eric Mwenda said, “ The financing arrangement enhances the capacity of the company to meet emerging opportunities as they arise.”
“Speed is often a deciding factor in the solar energy value chain. When a client approaches us to own and operate a solar PV system, we must mobilize the necessary capital to meet their demand. Institutional credit lines allow us to operate more efficiently while reducing our dependence on ad hoc financing for individual projects,” added Eric Mwenda.
Healthcare is a key target market for the expansion, with Miale Solar citing the need for reliable electricity to run medical equipment, laboratories, air-conditioning systems and critical-care units.
The company says solar installations, with battery storage where required, can help health facilities reduce electricity costs and limit exposure to power disruptions.
Founded in 2015, Miale Solar develops and operates solar assets for large energy users in sectors including education, healthcare, manufacturing and agricultural value chains. Its systems are installed on customers' premises, with the company retaining responsibility for their maintenance and management during the contract period.
Hivos-Triodos Fonds was launched in 1994 as a public-private partnership between Hivos and Triodos Investment Management, advocating for and investing in sustainable change in emerging countries. Since its inception, Hivos-Triodos Fonds has invested over €300 million spread across 107 high-impact initiatives in 49 countries in Africa, Asia and Latin America
