Q&A: Your next church service could be powered by the sun

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Solar has come a long way from being a small-scale domestic solution to now meeting large industrial power needs. Today, it’s finding its way into schools, hospitals, water pumping systems, and even places of worship, Afriwatt’s CEO told Renewables Rising in an interview. Watch out! Your faith could soon be renewed with the “holy power” of the sun.

• Afriwatt is a Kenyan-based energy company serving residential, commercial, and industrial customers. To date, the company has installed at least 3 MW of solar projects across the country.

• The company plans to prioritise key markets that guarantee better returns."Our strategy for the next five years is to put a lot of emphasis on industries, as they provide a good flow of revenue and market expansion opportunities," said Engineer Thomas Sigowa, the CEO of Afriwatt.

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Q: For a long time, solar was mainly seen as a domestic solution. What has changed in the market since then?

Eng. Thomas: That's right. Africa has been on a rising trajectory since 2020. Many people now accept solar as their main source of energy, or at least use it as a backup to blend with the main power source. This has helped to stabilise Kenya's power supply by reducing the load. Currently, around 20 to 24% of people are using solar as their primary source of power.

For a very long time, from the late '90s until the early 2010s, solar was considered a domestic power solution. However, from 2017 onwards, industries began to adopt solar to cut their bills. The domestic sector is no longer our primary customer; it's now the industrial sector. The internet industry is also using solar as its main power source. The domestic sector comes in second, and then social places like hotels and businesses are third.

Q: Aside from industrial and domestic use, are there any other key areas where you've seen a rise in solar adoption?

Eng. Thomas: Yes, another key area for solar uptake is water pumping. Whether it's for irrigation, boreholes, or city use, people are increasingly going solar. This is where Afriwatt came in with the idea of blending renewable energy with water supply.

We established a unit that deals with drilling wells and pumping and supplying water. We can now offer customers an end-to-end solution. We can drill a well, build a storage unit for you, and then, using renewable energy from either solar or wind, you can pump that water to your house.

People are now able to live off-grid. We have customers living far from the grid who are doing wonders. Some people are irrigating 50 acres of land and living there, with their house fully running on solar energy, and they're in no hurry to connect to the grid. This is the latest 'living green' revolution.

This is where our drive comes in, because once more people live green, it means we are reducing the carbon footprint across the continent. We're also helping people live with more convenience. Before, you could only go to a remote area with a generator, but after a week, you'd have to return to town for fuel. You'd come back with containers of fuel and then go back and stay for another week. With the adoption of solar, you can simply go and stay there forever, with no disturbances.

Q: So, does your company handle both large-scale commercial solar installations and small-scale residential ones? And do you provide financing?

Eng. Thomas: Yes, we mainly finance our projects. For the small models, we don't do them for a significant profit; it's more of a corporate social responsibility (CSR) effort. We charge a small fee to cover operational costs. It helps us reach a wider group of people and eventually comes back to us in terms of marketing and referrals. The goal is to bring more people online so they can appreciate solar and feel part of the green economy. If we only sold to the rich, we would be isolated from a large portion of the market. We need to find a balance between making a profit and giving back.

For example, in areas like Baringo, West Pokot, Machakos, and Kitui, we have small solar packages that cost as little as 25,000 to 50,000 shillings, which enable people to do small-scale irrigation along rivers. We also have packages for lighting and phone charging for people living on less than a dollar a day. A person can get a small unit for about 3,000 shillings and pay as little as 20 shillings a day. This allows them to live a more modern life, communicate, and do business without having to walk long distances just to charge their phone.

Q: For your commercial projects, what's the typical size, and what's your largest project to date?

Eng. Thomas: Our commercial-scale projects start from 20 kilowatts and go upwards. We consider anything around 100 kilowatts and above to be a large-scale project. One of our most significant projects is with Moi University, where we are targeting a 5-megawatt grid-tie solution over five years. We completed a pilot phase of 27.5 kilowatts last year and are now working on the second phase, which is aimed at producing 100 kilowatts of both grid-tie and hybrid solutions. We are also working with the Catholic Diocese of Eldoret on several projects for churches, schools, and hospitals, starting with a 30-kilowatt hybrid system at the headquarters. We also completed a 50KW solar hybrid project for a logistics hub in South Sudan.

Q: How many projects have you completed in Kenya so far, in terms of capacity?

Eng. Thomas: In terms of commercial projects, we have installed about 3 megawatts in total. For industrial projects, we're approaching 1 megawatt, as they take more time and are often done in phases.

Q: How big are your current projects in the pipeline?

Eng. Thomas: We are implementing a 45-kilowatt project at an animal production factory in Limuru and a 35-kilowatt project in Uasin-Gishu for a farm that wants to do its own processing. We have about 198 kilowatts in our pipeline for the rest of the year, which includes projects like the one at Moi University.

Q: A big challenge with donor-funded projects is maintenance after the handover. How does Afriwatt ensure the long-term sustainability of its projects?

Eng. Thomas: We have an airtight project implementation plan. During the feasibility stage, we develop a training programme. We train at least two people from the client's institution or company even before we start the installation, and they work with us throughout the process. This ensures that they understand the dos and don'ts of the system.

In addition, our implementation plan includes a service maintenance contract. We charge a small fee for this, not for profit, but to ensure our systems are always up and running. This is good for our reputation. For big projects, we insist on this contract, which includes at least three to four visits a year and one major maintenance session. This approach also helps create employment as we train local people.

For instance, at Moi University, we trained around six people, with three technical staff who stayed with us until the end of the first phase. We follow this same process with industries in places like Nairobi, Kiambu, Marsabit, and Uasin-Gishu. Taking care of this is crucial because if you don't, it can harm your brand name. The longer your project runs successfully, the better it is for our brand.

Q: How are you positioning Afriwatt given the increasing competition, especially from companies entering from China and India?

Eng. Thomas: The Kenyan and African market is very wide, and if you position yourself well, competition isn't a huge problem. Everyone has their own niche. However, we're seeing more new entrants, especially from India. In Kenya, for example, our association survey shows a 6% growth in new Indian companies over the last two years. The Chinese companies that came in earlier were mostly distributors and had some challenges penetrating the market. Indians, on the other hand, are much more established in Africa, especially in sectors of the supply chain and construction, so they pose a different kind of competition. We are monitoring this closely while improving our service delivery to remain competitive in the market.

Q: Looking at the market, what is your strategy going forward, and where do you see the biggest opportunities?

Eng. Thomas: Our strategy for the next five years is to put a lot of emphasis on industries, as they provide a good flow of revenue and market expansion opportunities. We will also target hotels and businesses. Institutions like churches are an upcoming market that was previously unexplored, and we are seeing a lot of demand from them. Another growing market is the domestic sector, where people are now adopting solar right from the construction phase of their homes. This gives us an advantage in providing full-scope solutions from design to installation.

The construction industry is picking up again after a significant downturn during the COVID-19 pandemic, and we expect it to be at its peak by the end of 2027. This provides a huge opportunity for domestic solar installations.

On pricing, there's been a huge disruption in the global market, with prices for solar panels dropping to an average of $0.15 per watt. This is mainly due to overproduction in China. While this is good for customers, it can be a challenge for companies in terms of long-term planning.

On a positive note, governments across Africa and especially in Kenya, are supporting the industry through zero-rating of renewable goods and reliefs. The stabilisation of the dollar has also contributed immensely to stabilising the market..

Q: What advice would you give to a young person or entrepreneur looking to venture into the renewable energy space?

Eng. Thomas: Africa is developing, and so is its renewable energy sector. One added advantage is that it is still a young and vibrant industry with minimal government regulations. The market is still wide, and there are opportunities for anyone with creative ideas. For those looking for skilled employment, we are always welcoming them. There's a shortage of skilled people who can handle renewable energy resources like solar, wind, and waves. The skilled labour pool is still very low, so there's a huge opportunity for people to get trained and enter the field.