Solar energy has revolutionized access to electricity, particularly in underserved and remote regions. It has become the most affordable source of power globally and a crucial tool in addressing energy poverty. Yet when it comes to transforming that energy into long-term economic opportunity—through what’s known as the productive use of renewable energy (PURE)—technology alone isn’t enough.
To truly unlock solar’s potential in improving lives and livelihoods, we must look beyond kilowatts and panels. We need something often missing in development conversations: patient capital.
What Is PURE and Why Does It Matter?
PURE refers to the use of energy to power income-generating activities, especially in rural or low-income settings. This includes solar-powered irrigation, food processing, cold storage, water purification, and more. Unlike basic electrification, PURE drives economic resilience by enabling communities to generate income, reduce manual labor, and improve food security.
However, PURE systems require durable infrastructure, strong service models, and a longer timeline to deliver returns. They often support micro-enterprises or cooperatives that need time to build capacity and market access. This is where conventional financing models fall short.
The Financing Gap
Many solar businesses targeting PURE are forced to rely on short-term commercial loans with high interest rates—products that simply don’t align with the nature of these systems or their customer base. As a result, ventures struggle to scale, and communities are left without access to technologies that could transform their livelihoods.
According to GOGLA, a leading voice in the off-grid energy sector, this mismatch between financial products and project realities is one of the biggest constraints facing PURE adoption. What’s needed instead is patient capital—long-term, flexible financing that allows businesses and communities to grow steadily, sustainably, and with impact.
What Makes Capital “Patient”?
Patient capital refers to funding that:
- Offers longer repayment periods, reflecting the extended timeline of returns in PURE ventures
- Accepts modest initial revenues and prioritizes long-term social and economic outcomes
- Is often blended with grant funding or concessional finance to reduce risk and catalyze private investment
It’s the kind of capital that prioritizes resilience over rapid profits, and systems change over short-term metrics.
The Power of the Right Investment
When deployed with the right financial support, PURE can be transformative:
- A farmer can irrigate crops year-round with solar pumps, boosting food production and income.
- A women-led cooperative can grind grain or press oil with solar-powered mills, creating local jobs.
- A rural fishing community can store their catch in solar-powered cold rooms, accessing new markets and reducing waste.
These aren’t just stories of energy access—they’re stories of economic empowerment. But none of it happens without capital that aligns with the real-world dynamics of these communities.
The Way Forward
The global development and energy sectors must begin to treat PURE not just as a technical opportunity, but as a financial one. That means:
- Designing dedicated financing vehicles tailored to long-term, impact-driven solar enterprises
- Supporting public-private partnerships that combine innovation with scale
- Creating policy environments that reward sustainable business models, not just installations
This also means reimagining the role of donors and investors—not as one-off funders, but as long-term partners in building resilient energy ecosystems.
Solar Needs Time to Work
Solar energy is undoubtedly a cornerstone of the global clean energy transition. But turning solar power into real economic transformation requires more than panels and inverters—it requires time, trust, and capital that’s willing to wait.
If we truly believe in energy as a catalyst for inclusive development, then financing models must evolve. Because when we invest patiently, we don’t just power villages—we power futures.
Find more information here: https://sun-connect.org/putting-solar-to-work-requires-patient-capital/