Sawa Energy partners with dfcu Bank to help Ugandan businesses finance solar

Ugandan clean energy company Sawa Energy has partnered with dfcu Bank to help businesses finance solar and other clean energy systems. The partnership combines Sawa Energy's energy products with financing from dfcu Bank. Businesses that want to install a system can spread the cost over time. They do not have to pay for the equipment and installation upfront. This could help smaller businesses. Many have to choose between buying equipment and keeping enough cash to run the business.

The upfront cost of solar

Solar can reduce a business's reliance on the grid and generators. But installing a system can be expensive. The cost depends on how much power the business needs. A company may need solar panels, batteries, an inverter and installation. For a small business, finding that money upfront is not always easy. A shop may need the cash to buy stock. A restaurant may need it for food and salaries. A workshop may need it for materials or new equipment. A business can see the value in solar and still decide that it cannot afford the investment.

Where financing comes in

The partnership with dfcu Bank gives businesses a way to finance Sawa Energy's systems. They can then pay for them over time. For an SME, this reduces the amount it needs to spend upfront. It can keep more of its working capital available for other expenses. Businesses will still need to consider the interest, fees and repayment period.Financing does not make the system free. It simply spreads the cost. For a company that already spends money on electricity and backup power, that can change the calculation.

Generators add another cost

Power cuts are another reason businesses may consider solar. A business that needs electricity throughout the day may turn to a generator when the grid goes down. That means paying for fuel, servicing and repairs. For some businesses, generators are a major part of their power costs. They can also make it more expensive to keep operating during outages. A solar system with battery storage can reduce the need for a generator. The size of the system and the business's electricity needs will determine how much it can rely on it. Switching to solar will not save every business money. The numbers will depend on electricity use, the frequency of outages and the cost of the solar system.

What it means for SMEs

The financing option is particularly relevant to smaller businesses. They often have less cash available for large equipment purchases. A business that has delayed installing solar because of the upfront cost can now consider financing as part of the decision. For Sawa Energy, the partnership gives its customers access to financing through a bank. For dfcu Bank, it adds energy equipment to the assets it can finance for businesses. The bigger question is how many SMEs will qualify. The financing terms will also determine whether smaller businesses can afford it. For businesses dealing with unreliable electricity, the calculation is simple. How much does it cost to keep using the current power setup, and does financing a solar system make more sense over time?