Call for Applications (CFA) for Off Grid Solar (OGS) Suppliers

1.1 Objective

The DSS RBF aims to provide access to quality OGS products by bridging the affordability gap for people in ultra-poor, vulnerable settings who would otherwise not be reached by commercial markets and suppliers or existing public initiatives.

1.2.Target population

The DSS RBF will target the “poorer” and “poorest” income categories of Malawians as defined in the Unified Beneficiary Registry (UBR) established by the Department of Poverty Reduction and Social Protection of the Ministry of Economic Planning and Development.

The DSS RBF is being piloted in seven districts (Balaka, Dedza, Salima, Dowa, Kasungu, Mzimba and Nkhata Bay).

Customers will be eligible to purchase one OGS per household. Technology suppliers will be required to utilise an Eligibility Tool to confirm customer eligibility and register subsidised sales (see FAQ for further information on this tool).

The pilot is expected to reach up to 210,000 households.

1.3. Product eligibility and service requirements

1.3.1. Tier-1 Off-Grid Solar (OGS)

The pilot will support solar-home systems (SHS) categorised as Tier-1 by the Multi-Tier Framework for Measuring Access to Electricity (MTF). In addition, products will be required to meet the following criteria:

• Be VeraSol certified
• Have at least a 2-year warranty
• Available on PAYG (Pay-As-You-Go) and cash basis.
• Have a minimum capacity of 3W and 12Wh/day. At least 3 light bulbs, and phone charging (with radio capabilities as optional)
• Not contain a lead acid or nickel cadmium battery.
• Imported no more than 2 years from the date of sale.
• Documentation/records attesting the aforementioned criteria will be required.
• Incentive calculation and disbursement

1.4 Incentive Calculation and Disbursement

The DSS RBF aims to reduce end-user prices by establishing a subsidy level (hereafter referred to as ‘incentive’) that accurately closes the affordability gap facing the target population. As such, the entire incentive fully benefits the end-user and is thus reflected as a price reduction (“discount”). A percentage- based incentive level(affordability gap expressed as a percentage of the average product price) up to a maximum amount (cap) will be used to allocate incentives per customer category. The remaining balance is the household’s contribution to the purchase of the products, either on a cash-basis or Pay-as-you-go (PAYGO) for OGS systems, based on their respective ability to pay. Customers are free to choose a product according to their needs and ability to pay the customer contribution.

Participating suppliers will be required to submit the commercial prices of their products under the DSS RBF for CUMO to calculate the appropriate incentive levels. Any subsequent changes to the incentive level will be communicated 30 days before the new levels are enforced. If suppliers wish to adjust product prices during the pilot, they will require approval from the implementation team.

Incentives are disbursed for all verified sales made to eligible customers within eligible districts.