ERES Energía Renovable
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Founded in 2010, ERES Energía Renovable better known by its commercial name Iluméxico is a hybrid social enterprise that provides affordable, clean energy to off-grid communities in Mexico and Colombia via solar-powered home systems. The organization is based in Mexico City.
While Mexico maintains a commendable 97% electrification rate, more than 3 million people, or 600,000 households, reside off the grid. Within these communities, primarily comprising indigenous populations, dependence on hazardous, inefficient, and dim energy sources persists. Similarly, Colombia, with a 95% electrification rate, confronts a parallel challenge, with over 2 million individuals, equivalent to 400,000 households, still lacking access to the grid.
Iluméxico serves these rural, low-income communities without access to electricity and basic services. Only 2% of their clients hold a bank account, and their average monthly income is $95 USD. This makes it difficult to apply for a loan with a traditional financial institution. Iluméxico bridges the gap by offering affordable loans, allowing individuals to finance their purchase of solar equipment at a below-market rate.
The organization offers household solar systems ranging from 25W to 325W, which can power items such as light bulbs, cell phones, and refrigerators. As a result, clients save an average of 8-17% of their monthly income through replacing candles, kerosene, diesel, and other lighting sources. Clients also gain an extra 2.3 hours per day to spend toward income-generating activities.
Since its founding,Iluméxico has refined its credit program and business model to better serve its clients. The organization now has a stronger community presence, hiring local employees to facilitate maintenance and coordination of payments. They have also moved to a service-based business model, allowing for more flexible financing. Clients now pay 0% interest on their loans and instead pay a minimum of $8 USD per month for maintenance costs.
Iluméxico has funded 874 loans totaling $313,275 USD through Kiva's platform since becoming a Lending Partner in 2012.
Repayment Performance on Kiva
This Lending Partner | All Kiva Partners | ||
Start Date On Kiva | Dec 20, 2012 | Oct 12, 2005 | |
---|---|---|---|
Total Loans | $496,700 | $2,039,143,240 | |
Amount of raised Inactive loans | $0 | $386,350 | |
Number of raised Inactive loans | 0 | 249 | |
Amount of Paying Back Loans | $179,650 | $155,266,620 | |
Number of Paying Back Loans | 150 | 186,619 | |
Amount of Ended Loans | $317,050 | $1,842,701,775 | |
Number of Ended Loans | 887 | 2,481,612 | |
Delinquency Rate | 0.00% | 11.40% | |
Amount in Arrears | $0 | $10,753,387 | |
Outstanding Portfolio | $95,877 | $94,310,269 | |
Number of Loans Delinquent | 0 | 39,375 | |
Default Rate | 7.64% | 1.82% | |
Amount of Ended Loans Defaulted | $24,224 | $33,599,235 | |
Number of Ended Loans Defaulted | 153 | 88,806 | |
Currency Exchange Loss Rate | 0.00% | 0.47% | |
Amount of Currency Exchange Loss | $3,093 | $12,607,359 | |
Refund Rate | 2.02% | 0.54% | |
Amount of Refunded Loans | $10,050 | $10,932,970 | |
Number of Refunded Loans | 21 | 9,666 |
Loan Characteristics On Kiva
This Lending Partner | All Kiva Partners | ||
Loans to Women Borrowers | 42.87% | 78.45% | |
---|---|---|---|
Average Loan Size | $343 | $393 | |
Average Individual Loan Size | $462 | $586 | |
Average Group Loan Size | $541 | $1,909 | |
Average number of borrowers per group | 2.8 | 8.3 | |
Average GDP per capita (PPP) in local country | $15,600 | $5,594 | |
Average Loan Size / GDP per capita (PPP) | 2.20% | 7.02% | |
Average Time to Fund a Loan | 1.26 days | 9.1 days | |
Average Dollars Raised Per Day Per Loan | $273.33 | $43.14 | |
Average Loan Term | 21.92 months | 11.49 months |
Journaling Performance on Kiva
This Lending Partner | All Kiva Partners | ||
Total Journals | 851 | 1,215,319 | |
---|---|---|---|
Journaling Rate | 76.78% | 41.90% | |
Average Number of Comments Per Journal | 0.00 | 0.02 | |
Average Number of Recommendations Per Journal | 0.00 | 0.56 |
Borrowing Cost Comparison (based on 2017 data)
This Lending Partner | Median for MFI's in Country | All Kiva Partners | ||
Average Cost to Borrower | 24% APR | 74.00% PY | 26.44% PY | |
---|---|---|---|---|
Profitability (return on assets) | -10.71% | 1% | -1.39% | |
Average Loan Size (% of per capita income) | N/A | 4.00% | 0.00% |
Country Fast Facts
- Country:
- Mexico
- Capital:
- Mexico City
- Official Language:
- Spanish 92.7%, other indigenous languages 5.7%
- Population:
- 120,286,655
- Avg Annual Income:
- $15,600
- Labor Force:
- agriculture: 13.4%, industry: 24.1%, services: 61.9%
- Population Below Poverty Line:
- 52.30%
- Literacy Rate:
- 93.50%
- Infant Mortality Rate (per 1000):
- 12.58 deaths
- Life Expectancy:
- 75.43 years
Lending Partner Staff
Ana Lucia CollPablo Velázquez
Manuel Wiechers