The lender has introduced Equi-Green Loans and Green Enterprise Financing products targeting households, small businesses, agribusinesses, schools, and institutions investing in renewable energy technologies
Kampala, Uganda | AGENCIES | Equity Bank Uganda is increasing its investment in renewable energy financing as it positions itself more firmly within the country’s transition towards cleaner and more affordable energy solutions. The move comes as households and businesses contend with rising electricity costs and continued reliance on traditional fuels.
The lender says limited access to affordable financing remains one of the biggest barriers to the wider adoption of solar systems, clean cooking technologies, and other renewable energy solutions, despite growing awareness of their economic and environmental benefits.
To address this gap, the bank is deploying a mix of specialised green loans, partnerships with renewable energy providers, and Results-Based Financing (RBF) programmes aimed at expanding access to clean energy in homes, schools, farms, and small businesses.
“Many Ugandans want solar systems, clean cookstoves and renewable energy solutions, but the initial costs remain too high for households and small businesses,” said Virginia Semakula, Equity Bank Uganda’s Head of Energy, Environment and Climate Change.
Uganda has made notable progress in expanding electricity access over the past decade. However, millions of households—particularly in rural areas—still rely on charcoal, firewood, and kerosene for cooking and lighting. These energy sources remain expensive, environmentally damaging, and linked to health risks caused by indoor air pollution.
Although government tax incentives have helped reduce the cost of importing solar equipment, upfront installation costs continue to limit uptake among many consumers.
Semakula says conventional lending models are often not well suited to 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.
Equi-Green Loans
In response, Equity Bank has introduced Equi-Green Loans and Green Enterprise Financing products targeting households, small businesses, agribusinesses, schools, and institutions investing in renewable energy technologies.
Under this model, renewable energy companies install systems while the bank provides financing to end users, enabling customers to spread costs over time.
The approach reflects broader efforts across Africa by governments, financial institutions, and development partners to mobilise private capital for climate-resilient development and clean energy access.
A key part of Equity’s strategy is results-based financing, a funding approach that disburses payments only after independently verified results are achieved.
“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 explained.
GIZ-NDEF partnership
Equity Bank has already implemented several programmes in partnership with development organisations including GIZ-NDEF, supporting the rollout of solar technologies and improved cooking systems in underserved communities.
The bank says early results are becoming visible, particularly in small businesses such as salons, retail shops, and agro-processing enterprises, which are using solar power to cut costs and reduce dependence on unreliable grid electricity.
Schools in off-grid areas have also benefited, with improved access to electricity enabling longer study hours and better learning conditions.
“In some schools, electricity access changed everything. Students could study longer, enrollment increased and schools even recorded improved academic performance,” Semakula noted.
The bank also argues that green financing is helping to expand Uganda’s renewable energy market by attracting more service providers, increasing competition, and creating jobs.
While some lenders remain cautious about perceived repayment risks and technology failures in renewable energy projects, Equity says its experience suggests otherwise.
“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,” she said.
As Uganda pursues universal energy access and seeks to reduce pressure on forests driven by charcoal consumption, financial institutions are increasingly being seen as central to enabling the transition. For Equity Bank, the long-term objective is to make renewable energy financing as accessible as conventional consumer credit.
“Clean energy is about better health, lower costs, improved education, stronger businesses and better livelihoods. That is the future,” she said.