The Rural and Renewable Energy Agency (RREA) signed the first in a series of Project Subsidy Grant Agreements with Rural Solar Incorporated. The ceremony took place in the RREA Conference Room and included partners such as BRAC Liberia, GIZ, and local stakeholders.
Rural Solar Incorporated, a Liberian-owned company, specializes in the sale of standalone solar home systems throughout the country. According to an RREA release issued in Monrovia on Thursday, the grant agreement will provide subsidies of $35 per household connection to Rural Solar Incorporated. This support aims to alleviate transportation and other related costs for homeowners purchasing solar systems.
Samuel Nagbe, the Executive Director of RREA, emphasized that the initiative is being rolled out in collaboration with Energizing Development (EnDev) and supported by the World Bank, the Governments of Japan and Liberia under the Liberia Solar Home System Result-Based framework. This partnership will further subsidize product costs to make solar home systems more affordable for end users.
Funding for the Indirect Grant Subsidy comes from the Liberia Electricity Sector Strengthening and Access Program (LESSAP), amounting to $5.55 million. This funding is delivered in two phases: $1.55 million from the Government of Japan and $4 million from a combination of IDA Credit to the Government of Liberia ($2.5 million) and a grant from the Government of Japan ($1.5 million).
LESSAP also funds the supply and installation of standalone mini-grids in clinics, health centers, public schools, and other public facilities, as well as the installation of streetlights across Liberia. The grant interventions aim to increase energy access in last-mile areas, bridge affordability gaps, and enhance solar entrepreneurship for SMEs.
Rural Solar Inc. will connect 6,900 households to standalone solar home systems in the following counties: Grand Cape Mount (2,200), Gbarpolu (1,300), River Gee (805), Grand Kru (400), Sinoe (305), Maryland (405), Margibi (255), Grand Gedeh (355), Montserrado (150), Nimba (200), Lofa (155), Grand Bassa (105), Rivercess (100), and Bong (105).