Karachi, August 4, 2024 — Sindh Chief Minister Syed Murad Ali Shah announced today that 200,000 Solar Home Systems (SHS) will be provided to low-income households across the province, using data from the Benazir Income Support Program (BISP).
Speaking at the signing ceremony for the framework agreements for the solar systems, CM Shah stated that the first batch of 50,000 Solar Home Systems kits would arrive in Karachi by the end of October for distribution. The ceremony, held at CM House, was attended by Energy Minister Syed Nasir Shah, PSCM Agha Wasif, Secretary Energy Muadiq Khan, representatives from three private companies, and other officials.
The Sindh Solar Energy Project (SSEP), executed at a cost of Rs27.4 billion with $100 million financial support from the World Bank, aims to distribute these SHS kits to low-income households. Each Solar Home Systems kit includes an 80-100 W Solar PV Plate, a minimum 18 AH Lithium-ion battery, one DC fan, three LED bulbs, and a mobile charging facility.
CM Shah revealed that the estimated cost of each system is around Rs55,000, including transport, taxes, and duties. Eligible low-income families will receive these kits at an 80% subsidy. The selection criteria for the households rely on the BISP register, focusing on those with a poverty scorecard ranging from 21 to 50. Families with scores between 0-20, deemed unable to pay Rs6,000 for the SHS kit, will receive them under the Energy Department’s Annual Development Program (ADB scheme).
The program, initially launched in 2020 with a 40% subsidy, saw limited success, selling only 322 systems due to the high remaining costs. With the World Bank’s support, the subsidy has now increased to 80%, although the program faced delays due to the 2022 floods and the COVID-19 pandemic.
The revised strategy includes a “Bulk procurement model” through international bidding, covering all 30 districts, including Karachi’s seven districts. Framework agreements will be signed with selected firms for the supply of 200,000 SHS kits in batches, ensuring compliance with World Bank procurement guidelines. Beneficiaries will contribute Rs6,000 per SHS.
Energy Minister Nasir Shah noted that 18 local and international firms participated in the bidding process, with three firms—M/S Bboxx Ltd (UK), M/S Shenzen LEMI Technology Development Co. Ltd (China), and M/S D.light Design Ltd (USA)—qualifying for the agreements. Five NGOs under the Sindh Peoples Housing Foundation Project (SPHF) have been contracted to handle distribution, installation, and replacement services.
To ensure transparency, a dedicated web portal for database management has been developed, and a helpline (021-111-222-262) is available for complaints. CM Shah has directed the appointment of Independent Verification Agents (IVAs) to conduct random checks and ensure compliance by NGOs.
This ambitious initiative aims to provide sustainable energy solutions to Sindh’s low-income households, enhancing their quality of life and reducing energy costs.
