Solar Home System Expansion Program: Q1 Progress

The program, supported by USAID's Southern Africa Energy Program (SAEP), focused on addressing key barriers to SHS scale-up, including consumer affordability, tax and duty exemptions, and debt finance for developers. SAEP played a crucial role in supporting the formation of the Solar Industry Association of Zambia (SIAZ), which serves as a single point of contact for solar providers and facilitates sector-wide initiatives. SIAZ, with SAEP's ongoing support, has the potential to shape the off-grid sector and integrate its activities with development partners and government through the taskforce. Key engagements between SAEP, SIAZ, and SHS players have taken place, including individual meetings with SHS players to understand how the geospatial model could support expansion plans, a SIAZ meeting to present an overview of the geospatial model, and a meeting with the Zambia Bureau of Standards (ZABS) quality standards team to understand the current status of reviewing and adopting revised standards. The SHS Expansion Program has identified five key initiatives for SIAZ to consider implementing, including targeted bootcamp training for sales agents, a Zambian Revenue Authorities and customs workshop on tax and duty exemption policy and enforcement, and an affordability 'gap' analysis for off-grid technology. SAEP will continue to provide support to SIAZ, including regular attendance at SIAZ meetings and touchpoints with companies in between meetings. The program's progress to date has been significant, with SIAZ submitting its registration to the Energy Regulation Board (ERB) and holding its third meeting to agree on initiatives. SAEP has also provided comprehensive guidance and clarity on barriers facing the sector, including feedback from interviews on priority barriers for members and a sector-wide perspective to enhance the link between solar providers and the off-grid taskforce. The SHS Expansion Program's focus on addressing key barriers to SHS scale-up and supporting SIAZ's ongoing operations has the potential to significantly contribute to Zambia's national electrification plan and increase access to solar home systems and solar mini-grids.