Industries, Mines and Energy Deputy Minister Gaudentia Krohnë has formalised a solar revolving fund agreement between the government and CENORED for the implementation of the rural and peri-urban solar electrification financing services.

Speaking at the agreement signing in Otjiwarongo, Kronhnë said the fund is designed specifically to remove the heavy connection cost barrier that comes with solar energy.

The deputy minister explained that the ministry will provide affordable and subsidised financing to individuals and businesses for up to N$150,000 for a maximum period of 5 years each.

"Our strategic plan clearly identifies the persistent challenges facing our energy sector: low generation capacity, limited access in rural and peri-urban areas, and affordability constraints. While grid infrastructure continues to expand across our regions, many households and small businesses remain unconnected, not because the grid is absent, but because the cost of identifying our energy sector connection remains beyond their immediate financial reach."

Krohnë said this move is part of the ministry's strategic goal on energy and set a national target to connect 200,000 households by 2030.

CENORED CEO Fessor Mbango said, "By collaborating with the ministry, CENORED will act as a bridge in ensuring that the technical expertise of the regional distributor meets the developmental goals of the state. We are committed to helping Namibia achieve 80% electricity self-sufficiency and 70% renewable energy penetration."

Otjozondjupa Governor John ||Khamuseb and Otjiwarongo Mayor Leonard Simushi welcomed the agreement signing.

To date, the fund has financed about 5,800 solar systems at a cost of N$177 million across the country.