Renewable energy products in Uganda are becoming more affordable, thanks to a new subsidy program launched by the Uganda Energy Credit Capitalisation Company (UECCC). The initiative is part of the Results-Based Financing (RBF) program under the Electricity Access Scale-Up Project (EASP), which seeks to increase the availability of renewable energy solutions across the country.
Affordable Renewable Energy Products for Households and Businesses
The Ugandan government—through the Uganda Energy Credit Capitalisation Company (UECCC)—has launched a subsidy program to make renewable energy products more affordable, supporting the country’s goal of expanding access to cleaner technologies for its citizens, including those in underserved and remote areas.
These subsidies are implemented through the Results-Based Financing (RBF) program, a component of the broader Electricity Access Scale-Up Project (EASP). The project is supported by development partners and aims to increase access to renewable energy solutions throughout Uganda.
The program offers a wide range of clean energy technologies for both households and businesses. Subsidized items include solar-powered cooking solutions, ethanol and biogas systems, liquefied petroleum gas (LPG) stoves, and biomass cookstoves.
The subsidies also cover off-grid solar solutions for productive uses like water pumping, irrigation, refrigeration, cooling, grain milling, and water heating.
The price reductions are significant. For lighting, solar lanterns are discounted by 60%, while solar home systems with up to three lights are 50% cheaper. Cooking solutions also see major savings, with a 40% reduction for ethanol and LPG cookstoves, and a 50% discount for biomass cookstoves and electric pressure cookers.
Equipment for water pumping, irrigation, and cooling receives a 60% subsidy, while biogas systems are available at a 30% discount. Running from November 1, 2024, to June 30, 2027, the subsidies aim to make clean energy products accessible to both Ugandan nationals and refugees in host communities.
Streamlined Access to Subsidized Products
To purchase discounted clean energy products, customers simply need a valid national ID and the means to pay the reduced price. Refugees can access the program using a valid refugee identification card. To ensure wide distribution, each individual is eligible to purchase one product per category every two years.
According to UECCC Managing Director Roy Nyamutale Baguma, 67 energy service companies have partnered with the program so far, and this number is expected to grow to ensure nationwide coverage. Companies serving remote and underserved areas will qualify for additional incentives, encouraging them to establish outlets in these hard-to-reach regions.
“Ugandans can visit any outlet of the listed energy service companies, show their national ID, pay the reduced price, and take home their product,” Baguma explained. He emphasized that the program is designed to benefit as many citizens as possible while promoting the use of renewable energy.
Positive Impact on Communities and the Environment
Speaking at the official launch in Kiboga district, Minister of Energy and Mineral Development Ruth Nankabirwa praised the program’s potential to transform lives. She highlighted that the initiative would improve community well-being, preserve natural resources, and boost household incomes.
By using productive energy equipment like irrigation systems and grain milling machines, households can increase their efficiency and generate income. The program also aims to reduce reliance on traditional biomass fuels, which have negative environmental and health impacts.
The Electricity Access Scale-Up Project, a $638 million initiative funded by the World Bank, is designed to accelerate access to electricity and renewable energy products in Uganda. Early results from the program are promising, with 3,244 off-grid solar products, 4,399 clean cooking solutions, and 112 units of productive energy equipment already sold since its launch.
By reducing financial barriers, promoting clean energy technologies, and supporting environmental conservation, Uganda’s renewable energy subsidy program is making a crucial contribution toward its sustainable development goals. With ongoing backing from the government, development partners, and energy companies, the program is positioning Uganda as a leader in renewable energy adoption in the region, benefiting both individual households and the nation’s broader goals of energy security and environmental sustainability.
