December 17, 2024

Prices of Renewable Energy Products Subsidised in Uganda

Renewable energy products in Uganda are becoming more affordable through a new subsidy program launched by the Uganda Energy Credit Capitalisation Company (UECCC). This initiative is part of the Results-Based Financing (RBF) Program under the Electricity Access Scale-Up Project (EASP), which seeks to increase the availability of renewable energy solutions across Uganda.

Affordable Renewable Energy Products for Households and Businesses


The Ugandan government — through the Uganda Energy Credit Capitalisation Company (UECCC) — has launched a subsidy program to make renewable energy products more affordable. This initiative aligns with the country’s goal of expanding access to cleaner technologies for its citizens, including underserved and remote areas.

The subsidies are implemented through the Results-Based Financing (RBF) Program under the Financial Intermediation Component of the Electricity Access Scale-Up Project (EASP). The project — supported by development partners — aims to increase access to renewable energy solutions across Uganda.

The program offers a variety of clean technologies for both households and productive use. These include solar-powered cooking solutions, ethanol and biogas systems, liquefied petroleum gas (LPG) stoves, and biomass cookstoves. Other subsidized technologies include off-grid solar solutions for water pumping, irrigation, refrigeration, cooling, grain milling, and water heating.

The price reductions are significant. Solar lanterns are discounted by 60%, while solar home systems with up to three lights are 50% cheaper. Ethanol and LPG cookstoves are reduced by 40%, and biomass cookstoves and electric pressure cookers are now 50% more affordable. Equipment for water pumping, irrigation, cooling, and other productive uses also enjoys a 60% subsidy. Biogas systems are available at a 30% lower price.

These subsidies began on November 1, 2024, and will run until June 30, 2027. The aim is to make renewable energy products accessible to both Ugandan nationals and refugees in host communities.

Streamlined Access to Subsidized Products


To purchase the discounted renewable energy products, customers need only a valid national ID and the ability to pay the reduced price. Refugees can also access the program with a valid refugee identification card. Each individual is eligible to purchase one product per category within two years

UECCC Managing Director Roy Nyamutale Baguma stated that 67 energy service companies are currently partnered with the program. This number is expected to grow to ensure nationwide coverage. Companies that serve remote and underserved areas will qualify for additional incentives, encouraging the establishment of outlets in hard-to-reach regions.

“Ugandans can visit any outlet of the listed energy service companies, show their national ID, pay the reduced price, and take home their product,” Baguma explained. He emphasized that the program is designed to benefit as many citizens as possible while promoting the use of renewable energy.

Positive Impact on Communities and the Environment


Minister of Energy and Mineral Development Ruth Nankabirwa — who officially launched the program in Kiboga district — praised its potential to transform lives. She highlighted that the initiative would improve community well-being, preserve natural resources, and boost household incomes.

By utilizing productive energy equipment such as irrigation systems and grain milling machines, households can increase efficiency and generate income. The program also aims to reduce reliance on traditional biomass fuels, which have negative environmental and health impacts.

The Electricity Access Scale-Up Project is a $638 million initiative funded by the World Bank. Its goal is to accelerate access to electricity and renewable energy products in Uganda. Since the program's launch, sales have shown promising results. Off-grid solar products have reached 3,244 units, clean cooking solutions have reached 4,399 units, and productive energy equipment sales total 112 units.

Uganda's renewable energy subsidy program plays a crucial role in achieving sustainable development goals by reducing financial barriers, promoting clean energy technologies, and supporting environmental conservation. With ongoing backing from the government, development partners, and energy companies, the program positions Uganda as a leader in renewable energy adoption in the region. It benefits both individual households and broader goals of energy security and environmental sustainability.


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