Summary

I started out by asking whether there were any international forces that might dramatically accelerate diffusion towards 100 million solar homes by 2025. Through a review of the existing World Bank approach, the existing bilateral aid approach, the potential for declining price of solar modules and the emergence of carbon trading, the conclusion was reached that none of these forces would deliver these numbers.

Instead, I proposed an alternative: a fund which will have the specific mission of delivering 100 million solar homes by 2025. These targets would rest on three strong, tried and tested pillars. First, a grant per unit installed to encourage firms to build the market infrastructure for solar, and reach out to remote, rural, unelectrified populations. Second, a line of credit that would be on-lent to local finance institutions to make it easier for customers to afford a solar system. And third, limited policy reforms to ensure that, once deployed, the grant and line of credit would have their maximum impact on diffusion. With such an approach, the world could reach 25 per cent of the unelectrified population by 2025, not only providing them with basic essentials such as electric light, but spurring entrepreneurship, innovation and job creation in places where it is needed most.

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