Measuring the health of a solar portfolio in Uganda
Founded in 2011, SolarNow sells, installs, and services high quality solar systems in Uganda and Kenya on a payplan/credit contract basis. As of late 2019, SolarNow has 55 branches, the majority of which are in Uganda, and around 650 staff and 45,000 clients, including approximately 21,000 outstanding payplans.
In 2018 and 2019, the company encountered a variety of challenges resulting from rapid growth, resulting in a drop in cash collections from the overall portfolio and a need to restructure some of its debt. For this restructuring to be successful, SolarNow and its creditors required a holistic view on portfolio quality and projected cash flows from the portfolio. IPC was contracted to provide an independent review of SolarNow’s credit monitoring approach and assess the quality/reliability of its credit monitoring data.
IPC’s experts implemented the following tasks:
- providing a quick assessment of the level of accuracy of SolarNow portfolio data
- developing a framework and dashboard to provide management with reliable insights on portfolio performance and emerging risks
- projecting future portfolio cash flows based on past portfolio performance
- developing a tool that SolarNow staff and management can continue to use to produce reports on portfolio quality and projections