Stories 3 mins Read 7 Nov 2024 Brussels

Harnessing the Sun: Solar Panda’s Commitment to Electrifying Underserved Communities in Kenya

In Kenya, where the sun shines brightly but access to electricity remains a distant dream for many, Solar Panda is on a transformative mission to bring light and hope to underserved communities.

As of 2022, only 70% of the Kenyan population had electricity, with rural areas suffering even more acutely—some counties reporting access as low as 30%. Families in these regions often rely on hazardous kerosene lamps and candles. This strains their finances, limits their potential for education, good health, and prosperity. Solar Panda is on the quest to changing this narrative. They (literally) empower individuals and families by providing affordable solar energy solutions. They illuminate homes, enhance quality of life, and open doors to new opportunities. With a vision rooted in the belief that access to electricity is a fundamental right, Solar Panda is dedicated to improving lives and fostering sustainable growth in the communities they serve. A simple thing like electricity impacts the lives of people who are trying to study, work, and play. It helps even in being healthy by excluding the use of kerosene for cooking.

Mission and Vision

Solar Panda’s mission is to ensure that every household has access to solar energy, transforming lives and communities in the process. They are leading the affordable solar energy revolution. The company’s motto, Boresha Maisha, translates to “Improving lives,” reflecting their commitment to uplifting the communities they serve.

Environmental and Social

Solar Panda’s initiatives have a profound impact on the environment and the communities they serve. By displacing the need for kerosene and batteries, their solar products not only reduce household expenses but also contribute to a healthier environment. Customers report a 70% improvement in their quality of life, as they save money that can be redirected to essentials like food, education, and healthcare.

The company’s financing model allows customers to build credit history, enabling future purchases and fostering economic empowerment.

Solar Panda designs and sells solar home systems and appliances tailored for off-grid customers. Their offerings include:

Solar Home Systems: Providing clean, reliable lighting and enabling families to gather and study together.
Mobile Phones: Allowing individuals to be connected to the world.
Mobile Charging Solutions: Allowing individuals to charge their devices.

As of July 2024, Solar Panda has served over 350,000 families, of which more than 30,000 located in Kenya’s most underserved counties and projections estimating 125,000 customers reached in those counties by 2029. These numbers demonstrate the company’s ability to meet the energy needs of these challenged communities effectively.

Solar Panda’s rural distribution and sales strategy allows it to reach more homes below the poverty line in Kenya than the average in the industry. Specifically, 57% of Solar Panda’s customers live on less than US $3.20 per day, compared to the industry benchmark of 37%. Their products positively affect customers’ economic situations by replacing the costs of kerosene, phone charging, and batteries for radios and torches. The savings from these expenses can be redirected towards essential needs like food, education, and healthcare. Many customers also use Solar Panda products for income-generating activities, such as charging phones for others, providing lighting for shops to extend operating hours, or using lanterns for fishing or farming after dark.

Quality of Life

70% of Solar Panda customers report “very much improved” quality of life, according to research firm, 60 Decibels.

Poor countries pay a higher proportion of their income on illumination than wealthy countries. Reducing these costs has a significant impact on quality of life.
Improved ease of cooking at night, and not having to travel to charge your mobile phone, leaves more time for productive activities.
Solar Panda provides power for over a 1.5 million people in Kenya.

Andy Keith’s Passion and Commitment

The founder, Andy Keith, was inspired to create Solar Panda after recognizing the stark electricity disparities during a visit to Africa in 2005. His experiences led him to understand the significant challenges faced by communities lacking basic electricity. Following the launch and sale of two successful energy ventures in Canada, he dedicated himself fully to the impactful journey of “leading the electricity revolution” called Solar Panda. Keith’s dedication to social impact is evident in his recent reflections: “Today, Solar Panda is powering over 350,000 homes with off-grid solar – an incredible milestone we are all proud of. We know that a social enterprise’s impact is only sustainable if that company is profitable and around for the long run”.

“ElectriFI has helped to catalyze additional investment into Solar Panda. ElectriFI first participated in our Series A. When our lead Series B investor dropped out just before close, the business was in a precarious position but had several bright spots around the corner. ElectriFI dug into the details, agreed with our assessment and helped to save the company at a critical time, participating in a small Series A follow-on. Indeed, shortly after that, we reached net income profitability.”

Investment and Future Prospects

The investment from EDFI Management Company, through the EU-funded ElectriFI initiative, has been crucial for Solar Panda’s growth trajectory. This support has enabled the company to expand its reach and enhance its services, ultimately transforming lives in underserved regions. Since receiving a Series A investment from EDFI Management Company in June 2022, Solar Panda has made significant strides. The funding has helped bring the total number of shops in underserved counties to 19, with plans for 11 more by the end of 2025. This expansion has created 43 full-time jobs and engaged over 827 field agents, directly benefiting local economies.

Looking ahead, Solar Panda aims to continue its mission of providing solar energy solutions, with additional plans to explore new markets. As they grow, their commitment to improving the lives of families in Kenya remains steadfast.

Through innovative solutions and a deep commitment to community empowerment, Solar Panda is lighting homes, illuminating futures, and proving that access to solar energy is a fundamental right that can transform lives.

Solar Panda’s remarkable growth in underserved counties

As of July 2024, Solar Panda has made remarkable progress:

Customer Base: The company has served over 30,000 families in underserved counties, with projections estimating 125,000 customers by 2029.

Sales Growth: Sales in underserved counties have surged from 5,708 units in 2022 to 13,632 in 2023 and a projected 19,000 in 2024.

Employment: Solar Panda has created 43 full-time positions and engaged over 827 field agents in underserved counties since the Series A investment, with plans for continued growth in employment as they expand their operations.

Future Expansion in Underserved Counties: Solar Panda has received an additional grant support from KOSAP and AECF, that will allow them to provide solar home systems to an additional 7,500 households and explore new markets