New A2EI report will help more small businesses find the right solar-powered appliances

September 29, 2020

A2EI access to energy institute

Over the last ten years, the energy-access sector has brought millions of solar home systems to market. These systems helped many off-grid families, mainly in Africa, fully cover their energy needs using sustainable, renewable power sources.

The next big thing we all expected was to see solar technologies become popular for productive use. Productive use refers to machinery, tools and appliances that small businesses and smallholder farmers can use to perform their work (e.g. milling, solar water pumping, coffee pulping) more effectively, which would increase their productivity and improve their livelihoods.

Unfortunately, that has not been the case—which is why our partner Access to Energy Institute (A2EI) decided to investigate the barriers to adopting and scaling solar-powered appliances for productive use. Knowing the barriers would help the energy-access sector overcome them.

Today A2EI is publishing its report to help others in the sector promote the right technologies for small, off-grid business owners to improve their incomes.

Understanding the benefits

A2EI started their investigation by asking: Why would a customer buy a solar-powered, productive-use technology?

They believe the most important benefit is the ability to earn income from the technology. This marks a fundamental difference between productive-use technologies and other products, such as entertainment appliances.

Rather than just looking at the efficiency of solar appliances and at the cost of electricity, they took a broader approach. One of their key findings in their report, which they launched today, was that “it’s not just about technology”. For a productive-use appliance to be adopted successfully, three things need to come together: It needs to be desirable (i.e. the customer must want it), feasible (the technology must work) and viable (a business must be able to successfully bring it to market).

Creating a model

They calculated the income earned per hour and per day, and they analysed how much of that income was needed to repay the cost of the appliance. They checked whether there was enough demand for the product locally, what kind of training and skills were required to operate the machinery and to market the output, and how the appliance compared to alternatives. This modeling approach was applied to ten productive-use appliances used in smallholder farming in Tanzania. Based on the results, A2EI recommended which appliances should be pursued as viable business models.

Elliot Avila, the report’s lead author, said: “The most important thing to come out of this paper is the recognition that a model is essential to any conversation on productive-use. The modeling approach allows for a high level of detail, creates transparency, and makes it simple to consider different scenarios.”

Sharing knowledge

A2EI believes that by providing all data in an open-source manner, transparently outlining all assumptions underlying the methodology and defining corresponding terminology, this report will help develop a common understanding and vocabulary about solar productive-use appliances. This way, we hope to inspire further research and strategies for people in rural communities to adopt solar technologies with the highest­ potential of improving their livelihoods.

Jolanda van Ginkel, IKEA Foundation programme manager, said: “This report by the A2EI sheds light into the complex field of solar productive-use solutions for rural households. Its insights will support the growth of solar solutions in rural areas, enable small businesses, smallholder farmers and their families to increase their income and improve their livelihoods.”

Download the report and sign up for the webinar.

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What can change when agriculture and energy are planned together? 🌱🌍 Food systems depend on more than crops and climate — they’re shaped by people, supporting services, and the systems around them. Written last year, this article brings together insights from work and partnerships across Eastern Africa, co-written by Judith Jacobs from #SNV, and our co-workers, Ahmed Sameh and Nico Janssen. Today, nearly 20% of the world’s energy use goes into food systems, yet many farmers still lack the power, infrastructure, and services they need to adapt and thrive. These five reasons explain why bringing regenerative agriculture and renewable energy together can help make food production — and rural livelihoods — more resilient. 🔗 Read the full article, link in bio. The Power for Food Partnership works across Kenya, Ethiopia, Uganda, and Rwanda to bring these connections into practice — linking renewable energy, regenerative agriculture, and cross-sector collaboration to support farmers and build more resilient, sustainable food systems. #IKEAfoundation #PowerForFoodPartnership #RegenerativeAgriculture #RenewableEnergy
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@ikea_foundation
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•
Follow
Did you know that methane emissions affect both the health of people and our planet? And here’s the fact we can’t forget: methane is 86x more potent than CO₂.But it’s also faster to remove from the atmosphere than CO₂ — meaning that reducing methane can deliver impact sooner. The good news? Solutions already exist, and with support from the IKEA Foundation, the #GlobalMethaneHub is helping scale effective ways to reduce emissions worldwide. 🔗 Spend a day with Henrique to learn more, link in bio. #IKEAfoundation #ClimateChange #ClimateAction
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@ikea_foundation
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•
Follow
In a world full of noise and misinformation, credible voices matter more than ever. That’s why nearly 800 @IKEA co-workers applied to join the 2025 IKEA Foundation Ambassador Programme — a journey that connects them with the people and partners the foundation supports as they tackle real-world challenges every day. Ambassadors listen, ask questions, and learn from those closest to the issues — building understanding they bring back to their teams and communities, where awareness grows and perspectives begin to shift. In 2025, the programme: 🌎 reached five hubs across four continents 🇰🇪 launched the first-ever Super Hub in Nairobi 🌟 welcomed 169 new ambassadors 🌱 grew a global learning community of 550+ people in 30+ countries These numbers reflect a growing curiosity — a desire to understand how change really happens and to hear directly from those working closest to the world’s toughest challenges. None of this learning happens without the insight and generosity of our partners. Their leadership continues to inspire and inform us. With our strategy now in motion, we’re doubling down on #ClimateAwareness at a moment when it matters most — and supporting partners creating solutions for people and planet. For 2026, that energy is even stronger: nearly 1,000 IKEA co-workers applied, and we’re excited to welcome 161 new ambassadors, with 38 more joining our Alumni Hub. We’re proud of what last year set in motion, and looking forward to what comes next. #IKEAfoundation #IKEAFoundationAmbassador
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@ikea_foundation
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•
Follow
This year reminded us that progress on climate action isn’t a straight line and that the way we move forward matters. 🌍 As climate extremes intensified and uncertainty grew, we saw the importance of working together — with trust, openness and shared purpose. For the IKEA Foundation, being on the way in 2025 has meant moving forward together: 🤝 With our partners, who are doing the work — working alongside communities, testing new approaches, learning what works and pushing for change where it’s needed most. Their leadership, commitment and courage are what turn ambition into action. 👥 With our team, learning, adapting and shaping a new strategic direction — focused on enabling impact, strengthening partnerships and keeping people at the heart of climate action. 🌱 With our ambassadors and changemakers, who share trusted knowledge, challenge misinformation and help people make sense of complexity with clarity and hope. As we look ahead — deepening partnerships and scaling impact — we carry our founder’s reminder with us: happiness, and real change, are found in the journey. #IKEAfoundation
2 months ago
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