About
Scaling up distributed solar power in Brazil can not only help the country achieve its climate targets, but can also provide increased energy access to low-income communities. However, low-income tenants typically lack the upfront capital required to purchase distributed solar systems. In addition, commercial lenders see low-income borrowers as higher risk, inhibiting their access to credit.
The Distributed Energy for Social Housing Fund (DESH) is a financial solution that can accelerate distributed solar power for low-income tenants in Brazil. It is a third-party ownership and rental model that would provide a robust legal and financial structure that is attractive and low-risk for investors, and would lower energy expenses for the tenants.
INNOVATION
DESH is the only financing option in Brazil that enables distributed energy at feasible rates that match the lifetime of solar projects. DESH will pose no upfront costs for low-income households, providing a 10-20% discount on energy bills from day one. Also, because DESH is a rental model, low-income households aren’t charged any interest rates and don’t have operations and maintenance responsibilities. In addition, DESH has a robust legal and financial structure that is set up to minimize risks to investors, like payment default. In the event of default, DESH has the ability to reallocate energy credits within 90-120 days among its clients.
IMPACT
The first phase of DESH will consist of three individual 5 MW projects in the state of Minas Gerais, which will benefit low income communities in Belo Horizonte, the state’s largest city.
DESH aims to support UN’s Sustainable Development Goals 7 “Affordable and Clean Energy” and 1 “No Poverty” and the impact from the first phase of DESH is estimated as:
- Renewable energy produced per year- 23,652 MWh
- Avoided greenhouse gas emissions per year – 8,728 tCO2eq
- Number of people with access to affordable, reliable and modern energy services – 80,396 people
- Revenue from products serving low income groups per year – EUR 676,920
Furthermore, the ambition for 2030 is to reach 300 MWp, which will have an estimated impact of:
- Renewable energy produced per year – 430 GWh
- Avoided greenhouse gas emissions per year – 150,000 tCO2eq
- Number of people with access to affordable, reliable and modern energy services 1.5 m people
- Revenue from products serving low income groups per year – EUR 12.3 mn
The aim of the DESH Program is to be able to supply solar energy to almost 1.5 million people in Brazilian classes D and E until 2030 and to mobilize US$ 300 million in investments.
DESIGN
The Distributed Energy for Social Housing Fund (DESH) is a third-party ownership and rental model for distributed solar systems in low-income condominiums, that will pose no upfront costs to the tenants. Tenants will only pay a monthly rental fee that is 10-20% lower than their standard utility rate and will bear no risk related to procurement, operations & maintenance costs. It provides potentially attractive investment opportunities for the implementation of these systems and through that is able to fund 100% of the distributed generation projects with no Brazilian local content requirements for the equipment, no guarantee requirements, and terms that match the lifetime of the projects.
Details
News & Events
Popluz wins award that recognizes social and environmental contribution of startups
January 8, 2021Popluz, from the Lab class of 2018, is among the winners of iImpact 2020 Badge, awarded by Innovation Latam and Fundação Dom Cabral. The iImpact Badge recognizes the social and environmental contribution of startups, be they social impact or not. Popluz enables distributed energy at feasible rates for low-income households in Brazil. Popluz is the […]
2018 Lab instrument DESH signs MoU with municipality of Belo Horizonte
August 19, 2019An instrument from the Lab’s 2018 cycle, Distributed Energy for Social Housing (DESH) signed a memorandum of understanding with the municipality of Belo Horizonte on July 22nd. DESH offers cheaper distributed solar energy for low-income tenants. Through this partnership, PopLuz, the implementing product of DESH, is registering potential customers among residents of popular housing. Proponents Endless and […]
Instrumento do Lab de 2018, DESH assina parceria com prefeitura de Belo Horizonte
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Investors launch new financial instruments for low-carbon transit, sustainable land use, and clean energy in developing countries
September 27, 2018New York, 27 Sept 2018 – The Lab – an investor-led initiative that aims to drive billions of dollars for climate action by developing and supporting innovative finance instruments – has launched its 2018 class of nine new investment vehicles. Over 30 high-level Lab members from governments, private investors, philanthropies, and development finance institutions convened […]
The Lab’s 2018 class of nine innovative vehicles for sustainable investment makes progress towards launch
May 30, 2018Nine new early-stage investment vehicles that aim to drive millions to clean energy, low-carbon transit, and sustainable land use in developing countries, continue to make progress towards launch. The investment vehicles comprise the Lab’s 2018 class, selected at the start of 2018 from a pool of over 100 crowd-sourced, competitive ideas to mobilize needed investment […]
The Lab picks top finance instruments for action on climate change in developing countries, particularly Brazil, India, and in Sub-Saharan Africa
February 14, 2018LONDON — The Lab – a public-private initiative composed of experts in sustainable investment from governments, development finance institutions, and the private sector – has picked a new class of investment vehicles to drive much-needed finance to low-carbon, climate-resilient global development, out of over 100 ideas submitted into a competitive pool. The nine new instruments […]
Contact
Niels Leidecker
Popluz
niels@popluz.com.br