infrahub.africa

Background

The iShack Project was established by the Sustainability Institute Innovation Lab in Stellenbosch to demonstrate and refine a model for providing affordable, off-grid solar energy services to unelectrified, low-income households in South Africa. The country's constitution provides for the progressive realisation of services to citizens, meaning that these communities are entitled to free basic electricity due to their ‘indigent’ status. However, they do not receive it because their homes in informal settlements are not connected to the electricity grid. The intention behind this work is to provide the evidence to support the adoption of solar energy in informal settlements, and the updating of national laws and policies to make better provision for large-scale roll-out of this kind of alternative energy service.

‍

Approach

The iShack Project provides Solar Home Systems (SHS) consisting of small rooftop solar panels (50-75Wp), batteries and distribution boards, which power lighting (3–4 lights per household),televisions and phone chargers with DC electricity. A wide range of funding and revenue models have been tested over the years. In the largest roll-out – in Stellenbosch - the municipality has provided a monthly operations& maintenance subsidy per household via a public-private partnership contract with the iShack Project, covering up to 90% of the utility’s overhead costs. In other communities, where no grants or subsidies are available, the project allows households to pay off the cost of a SHS over 3 years.

‍

Environmental Impact

Indoor and outdoor air quality is improved by displacing the use of hazardous fuels for lighting. The use of solar technology eliminates the carbon emissions associated with South Africa's coal-dominated electricity grid and the use of hydrocarbon fuels. The risk of runaway shack fires is also reduced, protecting the lives and meagre possessions of the most vulnerable.

Success Factors

Apart from providing an affordable, clean, dignified and durable energy service to over 9,000 residents, the initiative has also been successful in gradually influencing policy changes in South Africa. For example, Stellenbosch Municipality changed its “indigent policy” to enable the use of funds for Free Basic Electricity to also be used to subsidise Solar Home Systems for households that are not connected to the electricity grid.

‍

Evidence

To date, approximately 3,000 households across 10 different communities have received a SHS in Stellenbosch and Cape Town.

‍

Evolution

Challenges

The learnings from multiple trial sites and testing various funding and delivery models shows that it is not possible to achieve universal access to basic, clean energy in poor communities by simply relying on market forces. Subsidies are required from the state to ensure universal access. Upscaling this work requires national and local governments to update their policies and allocate funding to off-grid alternatives such as SHS so that they can meet their statutory service-delivery obligations.