Solar-E-Cycles - Morocco

Solar vehicles exist today but are mainly shown in engineering schools or in technical contests, and usually only have room for one passenger. Solar-E-Cycles is making a solar car that can be used by most of the world's population. It is inexpensive and can take most people to work and back on just one daily solar charge.

Fast facts:

This project aims to make a vehicle that costs about USD 1,000 and is available for USD 0.50 a day to populations in off-grid rural areas;
This project has received approval for grant financing to roll out 50 Solar-E-Cycles in a pilot project in Kenya.

The problem

The lack of power infrastructure in off-grid communities is hindering the economic development of families and small businesses in rural areas. Lack of access to credit also stifles development. In 32 African countries, more than 50% of the population earns less than USD 2 per day and less than 3% of individuals have access to bank loans.

The solution

The Solar-E-Cycle project is a three-in-one solution that can provide energy to rural communities. It is an off-grid power system, a solar powered transportation device and a hybrid financing mechanism. The Solar-E-Cycle can be leased and the management of the lease can be delegated to existing local microfinance institutions, minimizing distribution costs. The Solar-E-Cycles are provided free of charge and come with GPS tracking for asset protection and monitoring. Data uplinks provide individual position and usage information feedback to backers and lessors 24/7. They also provide the ability to immobilize the vehicle in case of non-payment or theft.

Leasing a donated fleet provides the cash flow to cover marketing and management costs to break even in three years. After ten years the initial cost of the vehicles has been recovered leaving up to 30 years of revenue for expansion, to recruit private equity and support debt to replace public funding after five years. Future cash flows generate a 17% return on private equity.

Helping the planet

These vehicles run on solar energy and therefore release no carbon emissions into the atmosphere.

Helping people

The Solar-E-Cycle will enhance mobility for families and individuals, allowing better access to the marketplace and more productive usage of time. In the home, power generated from the solar PV panels included in the Solar-E-Cycle will enhance quality of life, education and health. The solar power could also be used to pump filtered water from wells or use ultraviolet lamps to kill bacteria for daily water consumption.

Scaling Up

This activity plans to develop at the rate of one project launched every three months. Countries will be added progressively to this project to reach the 32 poorest African countries within 10 years. The project will scale up from public to private financing when cash flows generate 17% equity returns to attract private investors and cover interest on debt in a 50/50 debt/equity ratio. Private investment will thereafter be the main source of financing.