Equity Bank Uganda has unveiled an ambitious financing strategy aimed at accelerating the adoption of clean energy technologies across the country.
The bank is positioning itself as a key player in Uganda’s transition to renewable energy by making solar systems, clean cooking technologies, and other renewable energy solutions more affordable for households, schools, farmers, and small businesses.
As Uganda continues to face rising energy costs, limited electricity access in some areas, and environmental concerns linked to the widespread use of charcoal and firewood, Equity Bank believes affordable financing could help more people switch to cleaner energy sources.
Speaking during an interview on renewable energy financing and Results-Based Financing (RBF), Equity Bank’s Head of Energy, Environment and Climate Change, Virginia Semakula, said the biggest challenge remains the high upfront cost of clean energy technologies.
“Many Ugandans want solar systems, clean cookstoves and renewable energy solutions, but the initial costs remain too high for households and small businesses,” she said.
Semakula noted that although government tax exemptions on solar products have improved access, financing models must evolve further to support wider adoption.
She explained that traditional loan structures, which often require repayment within 12 months, are not suitable for many renewable energy investments.
“We need more flexible financing with lower interest rates and longer repayment periods, especially for solar technologies. A 24-month repayment structure works much better for many customers,” she said.
To address this challenge, Equity Bank has introduced specialised products such as Equi-Green Loans and Green Enterprise Financing.
The products target households, small and medium-sized enterprises, agribusinesses, schools and companies investing in renewable energy technologies.
Under the arrangement, renewable energy companies install the systems while Equity Bank provides financing to the end users.
The bank says this model lowers barriers to access and helps customers move away from costly and environmentally harmful energy sources such as charcoal, kerosene and firewood.
A key component of the bank’s strategy is Results-Based Financing, a model that is increasingly being adopted by development partners and financial institutions seeking measurable outcomes from clean energy investments.
Under the RBF model, incentives are paid only after projects have been installed, independently verified and confirmed to be functioning as intended.
“Results-Based Financing is not about promises. The systems must first be installed, operational and verified by an independent third party before incentives are paid out,” Semakula said.
Equity Bank has implemented several RBF programmes in partnership with organisations such as GIZ-NDEF, supporting the rollout of solar technologies and improved cooking systems in underserved communities.
According to the bank, the programmes are already delivering tangible benefits.
In rural communities, households have adopted cleaner cooking solutions, reducing dependence on charcoal and kerosene while lowering fuel costs and indoor air pollution.
Small businesses, including salons, retail shops and agro-processing enterprises, are increasingly using solar energy to reduce electricity costs and extend their operating hours.
Schools have also benefited from the initiative.
In off-grid districts such as Alebtong, solar installations have enabled students to study at night, contributing to improved learning conditions and better academic performance.
“In some schools, electricity access changed everything. Students could study longer, enrolment increased and schools even recorded improved academic performance,” Semakula said.
The bank says the growth of green financing is helping to stimulate Uganda’s renewable energy sector by attracting more solar companies, increasing competition, creating jobs and gradually reducing the cost of technology.
Despite the progress, some financial institutions remain cautious about financing renewable energy projects due to concerns over loan repayment and technology performance.
However, Equity Bank says evidence from its programmes shows strong repayment rates and growing customer confidence.
“There has always been fear that customers may not repay or that the technologies may fail, but the results are showing otherwise. Customers are paying, and adoption is growing,” Semakula said.
As part of its Energy Month activities, the bank plans to conduct public awareness campaigns, including Green Friday events where customers will interact with renewable energy technologies through demonstrations and exhibitions.
Equity Bank also intends to bring more renewable energy companies into its network to improve customer choice and encourage competitive pricing.
In addition, the lender is expanding financial literacy programmes to help Ugandans understand how to select, finance and effectively use clean energy technologies.
Looking ahead, the bank says its long-term goal is to make renewable energy financing as accessible as other common forms of borrowing, including school fees and boda boda loans.
The lender is also optimistic that Pay-As-You-Go models and Results-Based Financing will play a significant role in expanding clean energy access across Uganda.
“Our vision is a Uganda where every household and business can access clean energy without taking on unmanageable debt,” Semakula said.
The bank believes that if financing barriers continue to fall, Uganda’s green financing ecosystem could unlock hundreds of millions of dollars in renewable energy investments over time.
For many households and businesses facing high energy costs, Equity Bank says clean energy is no longer just an environmental issue but an economic opportunity.
“Clean energy is about better health, lower costs, improved education, stronger businesses and better livelihoods. That is the future we are financing,” Semakula added.
