Energy Lending Program

Social Impact Environmental Protection

Financial Sustainability

bottomline

The Initial model focused exclusively on providing members’ with financing for small solar portable lighting devices and efficient cook stoves.

NWTF’s Energy Program began in 2009:

RESOURCES

• Internal Resource• ARC Finance• Grants

Issues in the early part of the ProgramMotivation among loan officers to focus on energy loans was quite low despite the fact that client demand was observed to be high, due to:

- Loan Officers uncertainty and lack of familiarity with energy technologies;

- increased workload and complexity of energy product promotion;

- The small average size of energy loans created a strong disincentive for proactive promotion by Loan Officers.

Actions Taken• Increased level of Energy Training and On-

going Support to Loan Officers & simultaneously Reduce the Overall Workload for those involved in energy product promotion;

• Hiring “Green Energy Officers” stationed in each of the islands where it has rolled out the energy lending program. These Officers became responsible in training and re-training of Branch staff in the proper use of energy products and coaching the Loan Officers in the most effective ways to communicate benefits to clients.

Some Adaptations to the model• Enhanced energy product lines

• Redefining NWTF Clients as both Energy Customers and Suppliers

• Shift in how incentives and responsibilities are defined and distributed between personnel

A significant increase in Loan Officers motivation:• Loan Officers receive cash

incentives for every energy loan disbursed that ranges between 200-600 pesos depending on the product.

Target Beneficiaries

The Primary target beneficiaries of NWTF’s Energy Lending Program are the women clients both in rural and urban areas, as well as the non-members who are small-scale retailers, food vendors, as well as those who are engaged in agriculture and fishing as livelihood.

It was estimated that they comprise 75% of NWTF clients who are connected to the grid however, most are illegally connected and only few enjoy consistent service.

Outputs, Outcome and Impact

1. Number of Units sold increased:2013 – 7,500 (due to typhoon Yolanda) 2014 - 5,470

2. NWTF Active Loan Clients Increased:2010 – 80,000 Clients 2012 - 140,000 ClientsDec 2014 – 217,745 Clients

3. Business hours of members’ sari-sari store are extended.4. Students are able to study and do their home works at night5. Clients as “Energy Product Sales Agents” earned supplemental income thus, able to help improving the well being of her family in terms of more and better food, buy medicine if someone is sick, provide extra money for snacks while children are in school and also for transportation.

• The Client as “Business Partner”.– This strategy allows NWTF program to reach more

customers, including the non-members. Likewise, the burden of sales activities shifted from Loan officers to the Client-Business Partner.

– As it aligns with the organization’s core mission of supporting clients’ in breaking the vicious cycle of poverty, it likewise provides supplemental livelihood as Energy Product Sales Agents.

Innovations

Lessons Learned• Listening to our customers – The rapid

increase in sales in recent years are due to our constant dialogue with clients.

• Satisfied clients are best promoters• Continuing commitment to expand the

energy access• Provide adequate knowledge to staff on the

energy products to build their confidence.

Moving Forward

New Partnerships

• NWTF partnered with “ada Luxembourg” for the DevSEA Program or Developing Sustainable Energy Access in form of:– Technical assistance– Community Organizing for Community Loans– Grant fund for the development of renewable

energy products.

Through the (MCPI) or Microfinance Council of the Philippines

THANK YOU