Improved market conditions for increasing private sector participation in the promotion of Renewable Energy (RE), will reduce the dependency on government subsidies in the sector. To achieve this, the program provides support on both the supply and demand side.

On the one hand, the program enables technical and financial access to the private sector in introducing innovative RE business models and technologies through a government-managed market-based incentive mechanism. On the other hand, the program supports Local and Micro Finance Institutions (LFIs/ MFIs and cooperatives) in developing loan products to increase the ability of rural end-users to afford the technologies, thereby increasing private investment from the consumer side.

Additionally, to ensure benefits for women, women-led households, and marginalized groups, RE technology and loan products targeting women and disadvantaged groups are prioritized.