Why people need our help?

With many financial barriers associated with solar panels people in need require our assistance to help bring solar panels to them.

In regards to increasing decentralized energy units there are many financial barriers that are standing in the way. These investments are being hindered by both general and specific barriers. The general issues face both the public and private sector funders and prohibit them from making hug leaps forward in regards to the issue.

People also struggle to meet daily needs which means affording a luxury of a solar panel is unrealistic for many.

First off, this is extreme associated with funding these programs. It leads to political instability as well as regulatory uncertainty. There are also low investor returns, and this combined with an unreliable cash flow can create a lot of uncertainty around financing decentralized energy access in the private and public sector. Secondly, theses investments in this low income economy are often associated with longer term and lower financial return. This leads many commercial investors unwilling to spend time creating relationships and market demand required for a good return. This excess time is often unappealing to the fast paced and exponential economy we live in today. It is not only the humanitarian and philanthropic approach people are taking, they want to make money and often times investing in this doesn’t return what is desired. In order to start an energy enterprise it is necessary to have a very large sum of money to get it of the ground, which leave it too large for smaller investor, but too small for larger and corporate leaders.

Another large issue that comes into prohibiting the finance of decentralized energy is there are many policy and regulatory restrictions on environmental actions. In many of these developing nations there are rules around decentralized energy which can be unfavorable or confusing. A lack of perception creates uncertainty and allows for these regimes to favor large scale fossil fuel projects. In these governments they also tell small scale investors that their projects have a low priority and lack to see the importance of allowing and supporting decentralized energy projects. Lastly, there are no proven business models to back up some peoples plans. The lack of business plan, which funders look for, can be tricky and leave many feeling the risk and return factors are unclear. Despite there being some pioneers in this energy access the lack of stability leaves many unsure if they should invest.

Policies also create a problem for people wanting panels

There are also climate finance barriers that affect the type of finance instruments used, type of intermediaries, and the priority results targets by those funds. First, there is an issue whether there would be a preference between loan or a grant to fund these projects. It was found that in order to be successful there must be a mix of both. It was found that international climate funds have been working with loans more than grants, which has been making it harder ti priorities decentralized energy access in low income countries. Grants also are given with a bias and are not perfect. Grants are usually given to countries which promise returns and therefore got to mostly middle income countries large scale projects, which prevents the money getting to where it is most needed. Most of the funding money is also going through intermediaries such as the UN, which is necessary to approve project, which has made the investments stronger. Overall, there are many barriers standing in the way of international public finance being channeled into renewable energy access, which require adressment. There is a need to reform the overall policy to allow for climate funds to be used the way they were designed to do. Therefore, it is an important time to look at positive examples of such investments such as Bangladesh and Nepal to identity ways to help use funds for increased energy access efficiently.