Microfinance Projects

One method of bringing LED lighting systems to households is through a Microfinance for Lighting Pilot Project. In this case, the partner organization would either be a microfinance institution or work very closely with such an institution. The microfinance institution would provide loans to households, enabling them to purchase a solar powered lighting system. The LED lighting system would then be repaid over a maximum period of 24 months. For this project approach, LUTW would sell the lighting system to your organization at a subsidized price, provide technical assistance, installation training, project support, and some financial assistance to support local organizations. To apply for your Microfinance for Lighting Project to be supported by LUTW, please follow the steps outlined below.

Step 1: The first step of a microfinance project is to evaluate the project’s feasibility given the lighting consumption/expenditure habits of households in the community. This means to evaluate the current expenses of households in the community on lighting compared to the cost of purchasing a solar powered lighting system via microfinance. By completing the microfinance feasibility diagnostic, you will help LUTW evaluate the economic benefits, or cost savings, of using a solar powered system instead of kerosene or candles. Microfinance projects are only undertaken in cases where households are spending an amount of money on kerosene and other lighting sources that would enable them to pay off a loan within a 24 month period. Please download the microfinance feasibility diagnostic by clicking on the button above before completing the microfinance project application form. Only after submitting the completed diagnostic to the LUTW Program Director and receiving confirmation from the Program Director that a microfinance project would be feasible, should the proponent move ahead to Step 2: Completing a Microfinance for Lighting Pilot Project application form.

Step 2: Please download and complete the Microfinance for Lighting Pilot Project application form above if you have completed the microfinance feasibility diagnostic and have received approval from the Program Director to submit an application.

Step 3: Upon completion of the Microfinance for Lighting Pilot Project application, the outcomes of the project should be evaluated and a decision to proceed with scale up into full implementation of Microfinance for Lighting Project in the community should be based on these results.

The LUTW Project Approval Process

Once proposals are received by LUTW, they are reviewed by the Program Director and the Executive Director. As the application is under review, LUTW may contact the applicant for clarification about any aspect of the proposed project. Please note that project applications may take multiple months to be approved and funded.

For more information, please contact the LUTW Program Director, Christoph Schultz, via email at c.schultz@lutw.org or by phone at 403-266-5004.

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