$3 million (micro)loan for solar panels in Central America

source : microdinero

The Inter-American Development Bank (IDB) decided to grant a loan of three million dollars to a private Honduran foundation, “Fundación Covelo”. It will equip 6,000 families with individual solar energy systems in Honduras, El Salvador and Belize. The Foundation will rely on Microfinance Institutions (MFIs) for developing microcredit offers around solar panels. As a result, each family’s total budget comes to 500 dollars.

The IDB adds that the project is also designed to create jobs with the aim of establishing a network of solar panel installers, trained to handle the entire maintenance process, including recycling the rechargeable batteries for the solar panels. Furthermore, the initiative will have a positive impact on public health. “The project will help improve the families’ sanitary conditions, by enabling them to stop using kerosene for generating electricity and thus reduce the risk of respiratory illnesses,” the multilateral bank points out.

This article is part of the special report: