For every £80 invested into this campaign Sollatek will be able to source and distribute a solar home system, which a Kenyan family can pay for in affordable instalments over 18 -24 months
Sollatek will be able to distribute and install 500 Solar Home systems (SHS) and 25 solar fridges from this raise
Sollatek is 100% Kenyan owned and managed, and has been operational in East Africa for over 30 years. During this time the market for solar products has changed significantly and with their experience and local knowledge Sollatek is well positioned to help the estimated 29 million individuals in Kenya who are currently 'off-grid' gain access to clean, reliable energy. Over the last 8 years Sollatek has sold over 835,000 solar lanterns and solar home systems (SHS).
Key product information
Issuer: Sollatek Electronics (Kenya) Ltd
Issuing Country: Kenya
Investment target: £60,000
Minimum investment: £50
Maximum investment: No maximum
Maturity: 24 months
Expected interest rate: 5% per annum
Withholding tax rate: 15% (applicable to UK residents who do not invest within an IF ISA)
Interest payment frequency: Semi-annually
Notional repayment: Semi-annually
Financial instrument: Unsecured interest bearing bond
This is a bond issued by a single company (rather than a savings product) and therefore it is recommended that you are careful with the amount you invest.
You must read the investment memorandum (provided below) where a full statement of risks is presented.
What the project investment will enable
Of the funds raised in this offer, £40,000 will allow Sollatek to make 500 solar home systems available to families in rural Kenya that would otherwise be out of their financial reach. The remaining £20,000 will then be used to purchase 25 solar fridges which will be sold to households, businesses and community organisations all of which would have been previously off-grid and without access to cold storage.
A unique selling point of Sollatek is that it benefits from a strong brand name and is known for its outstanding aftersales services. It guarantees all repairs are done within 72 hours for products within their guarantee period. The manufacturers’ guarantee periods are the same length as offered to the end-consumer.
Sollatek works with two solar off grid equipment suppliers, NIWA Solar and Greenlight Planet to offer a range of portable solar lanterns, phone charging lanterns, solar home systems, and fridges. Its solar panels, batteries, inverters and charge controllers are manufactured by the French owned EcoGreen. The Company runs comprehensive due diligence and market research on suppliers to ensure high quality products at affordable market prices. Sollatek has had an average of 3+ years relationship with most of their suppliers.
Sollatek expects that almost 80% of the solar fridge systems supplied will be for productive use to help earn income. For farmers and fishermen, cold storage allows for greater control over when and at what price they can sell their produce. The addition of a suitable solar fridge system can help increase household income levels whilst also encouraging better health practices and increasing the quality of the product.
Sollatek Electronics Kenya
With money raised from this campaign Sollatek will be focusing their efforts on the “underserved” areas of Kenya and will work with community groups in Western Kenya to help sell and distribute their solar home systems.
Sollatek prides itself on offering quality products at an affordable price and they offer free courier delivery on their products as well as a 2 year warranty (even without proof of purchase). From their 8 regional services centres across Kenya, Tanzania, Uganda and Burundi they can offer superior after sales care with most faults fixed within 72 hours.
Social and environmental impact
Solar home systems & lanterns have been shown to have a significant impact on customers' lives and the environment. To date, Sollatek has sold more than 835,000 systems & lanterns across East Africa, and has impacted the lives of around 4 million people.
The installation of solar home systems to off grid families has significant impacts that can be divided into the following categories: lifestyle, flexibility, health and safety, and economic. The following improvements below are associated with installation of Sollatek's solar home systems and access to reliable, renewable energy in general:
Increase in available hours of light per household, associated with Sollatek's 30-40W systems
of Sollatek's customers utilise their system to operate a business from their home
percentage of entrepreneurs participating in Sollatek's EEP project who are female, with top sales mostly attributable to them
of individuals using a SHS for business purposes report that they are able to work for longer hours
Using industry-recognised SolarAid impact metrics, Sollatek has calculated the environmental impact of installing 500 solar home systems as follows:
Number of people who will benefited from clean energy access
respondents to a Power Africa survey reported reduced energy spend and kerosene use as the most appreciated benefit of SHS
Annual total CO2 emissions offset per household