Scaling solar home systems for rural development

1. Strategic context

1.1 Country level

Agriculture is at the centre of Cameroon’s rural economy. About 75% of the population rely on this sector for subsistence. Though very important, there are many challenges faced today by the agricultural sector in rural areas. They go from a dearth of infrastructure to an absence of effective value-chain integration, and an inadequate supply of reliable electricity. Approximately 85% of Cameroon's poor population lives in rural areas, where constrained access to energy perpetuates poverty and constrains socio-economic development. The rate of rural electrification is markedly low, with less than 25% of the population having access to electricity, in strong contrast to the figure of over 60% in urban areas. This disparity serves to highlight the existence of a deep urban-rural divide, which has historically resulted in the marginalisation of rural communities.

The agricultural sector plays an important role in Cameroon's economy, contributing 22.3% to the country's gross domestic product (GDP) as of 2015. Agriculture employs nearly half of the country’s active workforce; an important amount are women and unskilled workers. There are about two million small family farms distributed throughout the country. There is yet an important untapped potential of the agricultural sector due to the lack of electricity in rural areas. Some important agricultural and food transformation processes are fundamentally made possible by accessing to electricity. Due to electricity shortage, outputs decrease while post- harvest losses increase since rural farmers often use processing methods that are not optimal. Let’s take cassava for example, the harvested crops rot up to 40% of the time because of poor processing and storage facilities.

Rural households are often constrained financially. This further aggravates the problem of energy poverty. They have limited disposable income and are obliged to spend an important share of their income, usually more than 10%, on inefficient energy sources like kerosene. Such sources not only increase greenhouse gas emissions but are also not adequate for electrifying agricultural processes. Structural changes towards more decentralised renewable energy solutions that align with rural livelihood are needed to address these challenges effectively.

1.2 Sectoral and institutional level

The interdependence of agriculture and energy in Cameroon is a well-established fact. Rural farmers rely on energy for a range of activities, including irrigation, crop processing and storage. However, their access to reliable and affordable energy sources remains limited. The government of Cameroon has identified the need for improved rural energy access as a key objective in its Vision 2035 strategy. This is intended to stimulate agricultural productivity and rural development. Despite these intentions, progress has been slow due to several factors, including limited financing, inadequate infrastructure and a lack of coordination among stakeholders.

The agricultural sector is driven by smallholder farmers, who must overcome significant challenges. These include limited access to modern farming equipment, inefficient value chains, and volatile markets. The absence of energy infrastructure in off-grid areas makes matters worse. Electricity has the potential to transform the sector. It can enable farmers to adopt modern technologies that reduce labour intensity, improve yields, and create higher- value agricultural products.

2. Project development objectives

By introducing regenerative agriculture, it is possible to address the energy access gap experienced by local farmers at various points within the production value chain. It will empower rural households in the South West region of Cameroon by integrating solar energy solutions with agricultural practices, with the aim of enhancing productivity, increasing incomes and achieving sustainable electrification in off-grid regions.

2.1 Higher-level objectives

The programme aligns with global and national goals for sustainable development. At the global level, it supports the United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) by promoting access to renewable energy for underserved rural communities, SDG 8 (Decent Work and Economic Growth) by fostering productivity and income generation through agricultural enhancement, and SDG 13 (Climate Action) by reducing greenhouse gas emissions, ensuring environmental benefits alongside economic and social development.

Moreover, the programme directly contributes to SDG 2 (Zero Hunger) by addressing food security challenges through enhanced agricultural productivity, diminished post-harvest losses, and improved market access. Access to reliable energy sources allows farmers to adopt technologies such as irrigation and cold storage, which are essential for improving yields and maintaining food quality. This, in turn, contributes to a reduction in hunger, malnutrition, and poverty in rural Cameroon.

At national level, the programme contributes to Cameroon’s Vision 2035, which emphasizes poverty reduction, rural development, and economic diversification. By integrating renewable energy into the agricultural sector, the programme aligns with the government’s strategic priorities of increasing rural electrification rates, boosting agricultural value chains, and fostering inclusive economic growth. This initiative immediately addresses development challenges and sets the foundation for long-term sustainability and resilience.

2.2 Who benefits from it? 

The principal beneficiaries of the programme are low-income rural households, particularly those engaged in agricultural activities. Due to their vulnerability and critical role in farming activities, women and youth, who constitute a significant portion of the rural workforce, are prioritised for inclusion.

Secondary beneficiaries include:

• Local cooperatives, which gain from collective access to solar energy solutions and training.

• Rural agribusinesses that benefit from enhanced supply chains and increased production.

• Financial institutions and renewable energy providers, which expand their reach in rural markets.

For this proposal, the programme will target 20 cooperatives of cassava farmers (arbitrary this number for ease of calculation), each consisting of 20 households. This will ensure that a total of 400 households directly benefit from the initiative. These households will receive Solar Home Systems (SHS) that power mechanised grinding, refrigeration, and solar-powered irrigation, as well as providing electricity for domestic use. This will significantly improve the quality of life in these rural communities.

The programme addresses a broad range of energy needs by electrifying homes, including lighting, phone charging and the operation of small household appliances. This dual approach – supporting both agricultural productivity and household electrification – guarantees a comprehensive impact on livelihoods. Improved energy access allows children to study after dark, enhances access to information through devices such as radios and televisions, and reduces dependence on harmful and costly energy sources like kerosene lamps.

The project is designed to create a replicable model that can be scaled to other regions in Cameroon and beyond. By demonstrating the economic and social benefits of integrating SHS with agribusiness activities, the programme establishes a framework for broader rural development initiatives.

3. Project description

The proposed project integrates renewable energy with agricultural development with the objective of creating a sustainable model for rural electrification and economic empowerment. It makes use of Solar Home Systems (SHS) as a decentralised energy solution that is tailored to the specific needs of off-grid households. By aligning the deployment of SHS with agricultural activities and household electrification, the programme establishes a self- sustaining cycle of energy access, income generation and an improved quality of life.

3.1 Different approaches for a single goal 

Solar home systems deployment

• Technology overview: Each cooperative will receive 3kW SHS units with the capacity to power agricultural and household needs. In the agricultural sector, SHS will facilitate the operation of irrigation systems, cold storage facilities, and small-scale processing equipment such as grinders. In the domestic sphere, the systems will provide power for lighting, mobile phone charging, and appliances like radios and fans, thereby markedly enhancing living standards. These systems are configured to operate autonomously on the national grid, rendering them optimal for off-grid rural regions.

• Installation and maintenance: The installation of SHS units will be conducted by certified technicians to guarantee the highest standards of quality. In order to facilitate long-term sustainability, local cooperatives will be provided with training in the maintenance and troubleshooting of SHS units. This will help to reduce the reliance on external technicians while simultaneously empowering communities to assume ownership of their energy systems.

• Financing mechanism: The project employs a pay-as-you-go (PAYG) financing model, which enables farmers to procure SHS through manageable monthly or seasonal payments. These payments are aligned with agricultural income cycles, thus ensuring affordability. Households will repay the SHS cost over a period of three years, after which they will become the owners of the system. This structure ensures financial viability for both the users and service providers.

Agricultural enhancement

The incorporation of SHS into agricultural procedures represents a pivotal element of the programme, addressing pivotal constraints in productivity, value addition and food security.

• Post-harvest storage: The utilisation of SHS-powered refrigeration systems has been demonstrated to reduce the incidence of spoilage by 30%, a particularly beneficial outcome for perishable crops such as cassava. This has the effect of preventing significant losses, with current estimates indicating that 40% of cassava crops are wasted due to inadequate storage. Furthermore, the deployment of such systems enables farmers to store produce until market prices become more favourable.

• Mechanized processing: The provision of SHS enables farmers to use electric grinders and other processing equipment to transform raw cassava into higher-value products, including "garri", flour and starch. This value addition serves to increase market prices and farmer incomes, while also creating opportunities for the establishment of small- scale agro-industries.

• Solar-powered irrigation: The provision of reliable and affordable energy access is a key enabler of water-efficient irrigation systems, which have been demonstrated to improve yields by 10–20%. This is particularly impactful in regions characterised by inconsistent rainfall, as it allows farmers to cultivate year-round and mitigate the risks of climate variability.

Capacity building

Capacity building is essential to the project's success. It ensures that beneficiaries can fully benefit from SHS and achieve long-term sustainability.

• Technical training: Farmers and cooperative members will receive comprehensive training on SHS operation and maintenance. This includes routine inspections, cleaning, and troubleshooting to ensure the systems remain operational over their lifespan.

• Financial literacy: Beneficiaries will be educated on budgeting, managing repayment schedules, and planning for seasonal income fluctuations. This training is essential to ensure that households can meet their PAYG obligations without financial strain.

• Community engagement: The programme leverages cooperative structures to promote collective decision-making, accountability, and peer support. Community engagement also facilitates the identification of local challenges and the co-creation of solutions, fostering ownership and inclusivity.

Monitoring and evaluation

Robust monitoring and evaluation mechanisms will track the programme’s progress and ensure continuous improvement.

• Impact metrics: Regular assessments will measure key indicators such as electrification rates, agricultural productivity, repayment compliance, and household income levels. These metrics will provide valuable insights into the programme’s effectiveness and inform any necessary adjustments.

• Feedback mechanisms: Community-led monitoring systems will be established to ensure that the project remains responsive to local needs. Feedback loops will also be used to identify challenges early and implement corrective measures.

3.2 Project cost and financing

The financial structure of the project is carefully designed to balance affordability for beneficiaries with the financial sustainability of service providers. For each household in a cooperative, we assume a power demand of 150W, with 50W for domestic use and 100W for agricultural purposes. Hence, a 3kW Solar Home System (SHS) unit that costs $28, 860 total, including hardware, installation, maintenance and administrative costs, is required per cooperative to service 20 households. At 20% government subsidy, the net cost comes to $1,154.40 per household. 

To facilitate manageable payments, a Pay-As-You-Go (PAYG) model will be implemented, allowing households to repay $1,154 over three years at $32 per month. A six-month grace period post-installation aligns the commencement of repayments with the farmers' income cycles, easing financial pressure.

A digital PAYG platform enhances transparency by sending automated payment reminders, monitoring compliance, and temporarily disabling SHS functionality upon missed payments until rectified, promoting accountability.

Operational costs integral to cassava farming incorporated into the financial model include several key components: Other costs are transportation costs for moving the harvested cassava to market, storage costs for some portion of the yield, irrigation costs for maintaining a continuous water supply, processing costs for converting the raw cassava into various products and the opportunity cost of household consumption which reduces marketable output. Also, OPEX continues to include the cost of maintaining the SHS on-going for refrigeration, irrigation and processing. These costs are necessary for the day-to-day running of the project and are directly linked to the production and income of the project. The annual operational expenditure per household is $4,583.

Each farmer cultivates 2 hectares, yielding 40 tons annually.  Without SHS, 30% spoilage reduces sellable produce to 27 tons. With SHS, spoilage is minimised, mechanised processing adds value, and yields increase by 10%. After operational costs of $4,583 and SHS repayments, net income during the repayment period is $19,112, increasing to $19,497 post-repayment.

Repayments are managed through cooperatives, pooling payments, fostering peer support, and building trust, enhancing compliance. After three years, households own the SHS outright, eliminating further costs and retaining full benefits, leading to long-term savings from reduced reliance on traditional energy sources.

Affordability is ensured as the annual SHS repayment constitutes less than 2% of household income. The SHS boosts income through value-added processing, reduced spoilage, and increased yields. Even during repayment, households should maintain significant income, ensuring financial stability.

This robust financial mechanism provides access to transformative solar energy, fostering economic empowerment and self-reliance among rural households.

Conclusion

A strategy that integrates SHS and agribusiness does not only play a role in solving Cameroon's problems regarding energy access particularly rural electrification and agricultural productivity but also serves as a beacon of hope for the communities that are ready for change. This project proposal should enhance long-term development and poverty alleviation by providing rural homes with the tools they need to manage their own energy. It will also improve climate change resilience. This programme is not just a technical solution; it is a map to wide-ranging changes in sustainability, empowerment and prosperity that other regions can use. Rural communities will have better standards of living, financial independence and a more sustainable and equitable future using solar energy.

Figure 1: Assumptions

Figure 2: Environmental and Social Assessment

Social Impact

Environmental and Climate Impact

Figure 3: Simplified Financial Model