ImpactAlpha, July 17 – Poor grid infrastructure and fuel shortages are driving demand for off-grid solar in Haiti, where less than half the population has reliable electricity.
“The whole country runs off diesel generators, so the market signal to switch to solar is very clear,” said Jamie McInerney of impact investing advisory firm CrossBoundary.
The firm is facilitating the sale of a minority stake in Port-au-Prince-based Solengy to Caribbean Investor Capital, a locally-owned and backed private equity firm, for $4.5 million.
Solengy is tackling financing challenges to solar adoption in the Caribbean country, providing off-grid solar home systems and commercial and industrial systems on a lease-to-own basis. It designs its systems in-house to meet local customers’ needs.
Haiti is a prime example small island nations’ vulnerability to climate climate and natural disasters. Haiti has been devastated in recent years by multiple high-magnitude earthquakes, hurricanes and floods. Decades of political instability and violence have deterred private investors.
The Solengy deal marks a rare locally-led climate impact transaction.