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Tontine: Self-help financing for solar home systems

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  • Diouf, Boucar

Abstract

The main limitation for a consistent expansion of rural electrification in developing countries is financial. In this paper we propose a new method of financing to access solar home systems for poor rural areas of developing countries. We use the concept of Tontine that is a traditional self-help organization that can provide funds without guarantees or interest, to give access to electricity to those who could not otherwise. We have developed low cost solar home systems presented in this paper to embody our proposition. We have as well started a pilot project in Senegal. We present two basic forms of self-help associations that have saving and lending as a primary or sole function, Rotating and Accumulating Savings and Credit Associations, respectively under ROSCA and ASCRA acronyms. We have built and proposed two solar home systems in ROSCA scheme in this paper. System 1 features two 5 W LED lamps and a mobile phone charger. System 2 is smaller, it is based on recycled mobile phone batteries, it powers a 5 W LED lamp. In the pilot project, the tontine for system 1 is taken on one year period while system 2 is given on 5 months basis.

Suggested Citation

  • Diouf, Boucar, 2016. "Tontine: Self-help financing for solar home systems," Renewable Energy, Elsevier, vol. 90(C), pages 166-174.
    • Handle: RePEc:eee:renene:v:90:y:2016:i:c:p:166-174
    DOI: 10.1016/j.renene.2015.12.050
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    5. Sun, Bohan & Gao, Ke & Liu, Shuai & Wei, Qiaoqiao & Wang, Hui, 2023. "Assessing the performance and economic viability of solar home systems: A way forward towards clean energy exploration and consumption," Renewable Energy, Elsevier, vol. 208(C), pages 409-419.
    6. Pereira, Géssica Michelle dos Santos & Weigert, Gabriela Rosalee & Macedo, Pablo Lopes & Silva, Kiane Alves e & Segura Salas, Cresencio Silvio & Gonçalves, Antônio Maurício de Matos & Nascimento, Hebe, 2022. "Quasi-dynamic operation and maintenance plan for photovoltaic systems in remote areas: The framework of Pantanal-MS," Renewable Energy, Elsevier, vol. 181(C), pages 404-416.
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    8. Diouf, Boucar & Miezan, Ekra, 2019. "The biogas initiative in developing countries, from technical potential to failure: The case study of Senegal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 248-254.
    9. Jashim Uddin Ahmed & Niza Talukder & Asma Ahmed, 2020. "Infrastructure Development Company Limited Solar Home System Program: A Sustainable Solution for Energizing Rural Bangladesh," South Asian Journal of Business and Management Cases, , vol. 9(2), pages 219-236, August.
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