Nigeria Electrification Program > Results Based Financing for Productive Appliances & Equipment

Results Based Financing for Productive Appliances & Equipment

1. What are productive use equipment/appliances?

  • Appliances and equipment that utilize minimum energy to complete their required task (s)

2. What are the types of appliances in use?

  • In Rural Communities, the main source of business activity is agriculture processing. Therefore, end-users use grain millers, rice processing equipment and other processing appliances.
  • Other commonly used appliances are driers, freezers and sewing machines.

3. What is Result Based Finance?

  • This is a subsidy that is applied after a pre-determined result has been met.
  • Disbursement will be made only upon verification that the agreed-upon results have been achieved

4. How long does verification of appliances take?

  • The PMU, independent verification agent and grant administrator will verify claims after 3 months of installation.

5. Will the subsidy cover the appliance cost?

  • No, the scheme intends to support the incremental costs that companies incur when supplying productive use appliances, namely: transportation, marketing, end-user financing, installation, end-user training, repairs, replacements and overall support

6. Will the subsidy support customs clearance costs?

  • No.

7. Who are the beneficiaries?

  • Phase 1 will involve seven existing mini-grids for a proof of concept while Phase 2 will expand into other existing mini grids. Phase 3 will cover all other developed mini grids particularly those in the Nigeria Electrification Project (funded by the African Development Bank and those funded by the World Bank). Furthermore, it will include the stand-alone solar companies.

8. Who can participate?

  • These subsidies will be provided to energy access companies, which include mini-grid developers, stand-alone solar companies, agricultural off-takers, cooperatives and other companies who wish to get involved in the market for productive use appliances. These companies will be involved on the basis that once purchased, the energy-efficient productive use appliances and equipment will be un-lent to beneficiaries in rural communities.