Solarcentury has signed deal with US firm CrossBoundary Energy (CBE) to install cheaper solar electricity systems in Kenya. The contract will see to it that Industrial and commercial buildings get installation of solar power systems for free while the users charged for the electricity consumed at discounted rates over an average period of 15 years.
The deal will see the companies cut on power bills, stabilize their power supply and control a portion of their power in future. A business owner can opt to either have the lease agreement or the power purchase agreement to benefit from the solar power. In both options, they can eventually own the powerplant but will not be charged upfront capital expenditure.
Recently, Cross Boundary Energy was recognized for its Excellence in Climate Solutions for its groundbreaking work to improve the efficiency of solar asset financing across Africa by the Financial Times and the International Finance Corporation (IFC).
The US firm provides solar financing solutions, including power purchase agreements with customers alongside lease agreements, while Solarcentury does the actual installation. Both firms have offices in Nairobi. CBE’s partners include SolarAfrica, the USAID Power Africa Initiative, the Shell Foundation, the Overseas Private Investment Corporation (OPIC), the Blue Haven Initiative, Treehouse Investments, Ceniarth and multiple other private investors in the CrossBoundary Energy fund.