Strengthening Haiti’s Energy Resilience: IFC and IDB Invest Commit $13.5 Million to Expand Solar Power Access Through Solengy

Haiti has long struggled with an unstable and insufficient electricity supply, with frequent fuel shortages and logistical challenges hampering economic growth.

In a significant step toward addressing Haiti’s chronic energy challenges and fostering long-term recovery, the International Finance Corporation (IFC) and IDB Invest, the private sector arm of the Inter-American Development Bank (IDB), have announced a $13.5 million investment to bolster the expansion of solar power through Solengy Haiti S.A. This strategic investment will not only enhance energy access but also promote economic stability by providing a more reliable and cost-effective power supply to households, businesses, schools, and healthcare facilities across the country.

Addressing Haiti’s Energy Crisis

Haiti has long struggled with an unstable and insufficient electricity supply, with frequent fuel shortages and logistical challenges hampering economic growth. As of 2021, only about 47% of the population had access to electricity, and many businesses face severe operational challenges due to unreliable power. The country’s energy sector is largely dependent on imported fossil fuels, contributing to high costs and environmental concerns.

With ongoing security and humanitarian challenges, Haiti requires sustainable and resilient energy solutions to support its recovery efforts. The investment in Solengy is expected to help bridge the energy gap by scaling up solar power generation and storage capacity, significantly enhancing energy security and affordability.

Project Scope and Impact The newly announced funding will support the deployment of 10 megawatts-peak (MWp) of solar photovoltaic (PV) capacity, paired with 20 megawatt-hours (MWh) of battery storage. This initiative will provide cleaner, more consistent electricity to key sectors, reducing dependency on expensive and polluting diesel generators. The project aims to:

• Expand distributed solar power generation.
• Increase energy security for businesses and essential services.
• Reduce operational costs by offering electricity savings of 30% to 40%.
• Improve resilience against power disruptions through reliable solar energy storage.

By facilitating broader adoption of solar energy, this investment will not only drive economic growth but also contribute to Haiti’s climate resilience by reducing carbon emissions and reliance on fossil fuels.

Commitment from Key Partners

The financing structure of the project demonstrates strong international commitment to Haiti’s energy transformation. The package consists of:

• A $3 million senior loan from IFC’s own account.
• A $3 million senior loan mobilized by IDB Invest.
• A $6 million subordinated loan from the Canada-IFC Blended Climate Finance Program.
• A $1.5 million grant from the Korea Green, Resilient and Innovative Development (K-GRID) program.

These funds will be strategically disbursed over multiple years to ensure effective and sustainable project implementation despite the country’s prevailing political and economic instability. The initiative also builds upon earlier investments from a World Bank-Haiti energy fund, marking a continued effort to scale up distributed solar energy in Haiti.

Leadership Perspectives

Elizabeth Martínez de Marcano, IFC's Regional Director for Central America, the Caribbean, Mexico, and Colombia, emphasized the broader impact of this investment: “As Haiti continues to face economic and humanitarian challenges, we remain committed to finding innovative solutions that promote long-term recovery. This investment is a critical step in addressing the country's energy deficits while advancing resilience and development.”

Marisela Alvarenga, Acting Chief Industries Officer at IDB Invest, highlighted the transformative potential of the initiative: “Ensuring access to reliable and affordable energy is crucial for Haiti’s sustainable development. This investment underscores the power of distributed solar solutions in transforming lives, strengthening businesses, and fostering economic resilience.”

Rowolson Kuhn, Founder and CEO of Solengy, expressed gratitude for the financial backing and its impact on scaling operations: “This investment marks a significant milestone for Solengy and a crucial step toward transforming Haiti’s energy landscape. With this funding, we will accelerate our efforts to expand solar access, enhance our infrastructure, and empower more communities. We deeply appreciate the trust and support of IFC, IDB Invest, and our advisory partners at CrossBoundary.”

Solengy’s Role in Haiti’s Energy Future

Solengy Haiti S.A. has established itself as a leader in distributed solar energy solutions, offering integrated services that include energy diagnostics, installation, operation and maintenance, insurance, warranties, and financing. By structuring contracts ranging from 3 to 10 years, Solengy has successfully eliminated key barriers to solar adoption, such as high upfront costs and limited financing options.

By focusing on a customer-centric approach, Solengy provides businesses, institutions, and households with sustainable energy solutions that significantly reduce reliance on the unreliable national grid. The company’s solar power systems have already been instrumental in reducing energy costs, improving business competitiveness, and ensuring continuous power for essential services like hospitals and schools.

The Path Ahead As Haiti navigates its economic and energy challenges, the investment in Solengy represents a vital step toward sustainable recovery and resilience. By expanding renewable energy infrastructure, the initiative will not only provide immediate relief from electricity shortages but also pave the way for a more independent and sustainable energy sector in the future.

Through the combined efforts of IFC, IDB Invest, and Solengy, Haiti stands to benefit from increased energy security, reduced carbon emissions, and a strengthened economic foundation. With continued investment and support, the vision of a cleaner, more resilient energy future for Haiti is becoming a reality.