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Hey. I'm a co-founder at Nowala. You are definitely correct in stating that we're not interested in charity. As someone who has lived in West Africa and has man
by kekuramusa 4y ago
Hey. I'm a co-founder at Nowala. You are definitely correct in stating that we're not interested in charity. As someone who has lived in West Africa and has many family members living in these villages, I can say that charity is not the answer to every problem. We believe in giving these individuals equal access to the opportunities afforded by the financial markets.
Great question on the lifespan and returns! The lifespan is 5 years. The break even period you're referring to are for homes in rich nations that have high energy consumption and use inverters for A/C appliances. They're extremely expensive and not useful for people in the villages of Sierra Leone. The loans provided through Nowala help people in the villages get access to units that are actually affordable for them over a two year period and meet their very limited energy consumption needs. You can check out the solar panel details here: https://www.engineeringforchange.org/solutions/product/sun-king-home-120/#:~:text=The%20product%20has%20a%202,expected%20lifecycle%20of%205%20years https://www.engineeringforchange.org/solutions/product/sun-k....
Also good questions on repair. We partner with solar panel distributors on the ground in Africa. They actually run existing businesses in a fast growing industry that enables people without energy access to get electricity through solar. Our partner in Sierra Leone, Ignite Power has installed over 100K solar panels across Africa. If a solar panel breaks, they handle the maintenance.
- rank0 4y ago5% annual return on an investment will take 20 years to break even regardless of the underlying instrument (or ~15 years if compounding). With bonds or equities you will either be paid the face value of that bond or still own shares that hopefully continue to appreciate. An “investment” into a solar panel doesn’t make sense to me because while you may profit off the electricity being sold the panel itself will be worthless in the future.