Over the next decade, solar energy will leapfrog the electricity grid in developing countries much like cell phones leapfrogged landlines. SunFunder is dedicated to financing this emerging solar market transformation.
SunFunder is solar finance business based in San Francisco and Tanzania that connects investors to high-impact solar projects that improve the lives of low-income communities in Africa, Asia and Latin America. We raise and aggregate capital to finance solar projects from both non-accredited investors on our web platform SunFunder.com and directly from accredited and institutional investors through our Solar Empowerment Fund (SEF) note issuances. Our focus is on providing short-term, working capital and project finance loans for solar lighting, phone charging, micro-grids and commercial solar projects.
SunFunder has financed $1.3 million of solar projects, with 14 solar companies in 6 countries, and maintains a zero percent default rate. This has helped over 140,000 people get access to affordable solar energy. In the next three years SunFunder aims to raise and deploy $100 million into solar projects around the world.
Around the world 2.5 billion people still lack access to reliable electricity. They rely on costly and polluting kerosene and diesel to light their homes and businesses and have no good options for phone charging. Still, today's investments in energy access are heavily skewed towards traditional coal-fired grid extensions, and at their current rate will leave one billion of the world's poor without energy access by 2030.
In the last few years, we've seen dramatic cost reductions in PV solar technology and a proliferation of products tailored to off-grid communities. McKinsey projects a 40-50 GW off-grid solar market from 2012 to 2020, representing a $250 billion financing opportunity. With this mass potential, entrepreneurs are stepping to meet market demand. However, the market suffers from a distinct lack of access to finance.
SunFunder is creating a solar finance ecosystem that aims to catalyze billions in financing into the off-grid and grid deficit solar market and impact over 150 million lives. SunFunder:
1. Is 100% dedicated to short-term working capital and project finance loans to help solar companies operating in developing and emerging economies achieve scale.
2. Aggregates investments from multiple sources including unaccredited, accredited and institutional investors.
3. Specializes in a relationship-centered, efficient and scalable customer partnerships and risk management.