US firm CrossBoundary Energy has entered into a partnership with British-based Solarcentury to roll out a program that aims to install cheaper solar electricity systems in Kenya.
The deal between the two firms will see Industrial and commercial buildings installed with solar power systems at no cost with users only charged for the electricity consumed at discounted rates over an average period of 15 years. Ownership of the solar plant will then transferred to the customer after the period.
“We offer discounts of between 10 and 20 per cent on what businesses pay for our solar power in comparison to market rates,” CrossBoundary regional portfolio lead Pieter Joubert said.
The solar systems in the program will come with backup storage batteries to ensure reliable power for institutions in the absence of sunlight.
The US company offers solar financing solutions, including power purchase agreements with customers alongside lease agreements. Solarcentury on the other side does the actual installation. Both companies have offices in Nairobi.
CrossBoundary joins another US-based Powerhive that has over 2,000 households in Kisii as clients, Nairobi-based PowerGen which operates solar micro-grids in Isiolo and Vulcan, owned by Microsoft co-founder Paul Allen, with 10 solar mini-grids in Kajiado and Samburu among firms that offer electricity to Kenyans outside Kenya Power and Lighting Company (KPLC).
Kenya Power has been having the monopoly of supplying and selling power, denying the sector competitiveness.
The Nairobi Securities Exchange-listed utility firm purchases power from producers like Kenya Electricity Generating Company for onward sale to customers.