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Promoting diffusion of solar lanterns with microfinance and carbon finance


Written by James Ryan Hogarth

‚ÄčThis paper discusses a case study of the energy lending programme of the Foundation for International Community Assistance (FINCA)-Uganda. It addresses two questions. First, it investigates whether FINCA can alter the energy transition of its clients by providing loans for solar lanterns.

Through an industry analysis, including a contingent valuation survey of FINCA's borrowers, barriers to the diffusion of solar lanterns in rural Uganda are identified, and strategies to overcome them are proposed.

Second, this paper examines the potential for FINCA to generate carbon credits through the diffusion of solar lanterns. Potential sources of carbon revenues were assessed including voluntary markets, through the company MicroEnergy Credits, and the Clean Development Mechanism.

  • Promoting diffusion of solar lanterns through microfinance and carbon finance

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James Ryan Hogarth