ERES Energía Renovable
Approved to post Kiva loans from: Mexico
Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.
Founded in 2010, ERES Energía Renovable is a hybrid social enterprise that provides affordable, clean energy to off-grid communities in Mexico via solar-powered home systems. The organization is based in Mexico City and has 12 locations across the country.
While Mexico has a 97% electrification rate, there are more than 3 million people, or 600,000 households, living off the grid. Most communities are composed of indigenous people who rely on hazardous, inefficient, and dim sources of energy.
ERES Energía Renovable 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. ERES Energía Renovable bridges the gap through 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, ERES Energía Renovable 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.
ERES Energía Renovable has funded 874 loans totaling $313,275 USD through Kiva's platform since becoming a Field Partner in 2012.
Founded in 2010, ERES Energía Renovable is a hybrid social enterprise that provides affordable, clean energy to off-grid communities in Mexico via solar-powered home systems. The organization is based in Mexico City and has 12 locations across the country.
While Mexico has a 97% electrification rate, there are more than 3 million people, or 600,000 households, living off the grid. Most communities are composed of indigenous people who rely on hazardous, inefficient, and dim sources of energy.
ERES Energía Renovable 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. ERES Energía Renovable bridges the gap through 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, ERES Energía Renovable 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.
ERES Energía Renovable has funded 874 loans totaling $313,275 USD through Kiva's platform since becoming a Field Partner in 2012.
Repayment Performance on Kiva
This Field Partner | All Kiva Partners | ||
Start Date On Kiva | Dec 20, 2012 | Oct 12, 2005 | |
---|---|---|---|
Total Loans | $315,025 | $1,493,920,050 | |
Amount of raised Inactive loans | $0 | $368,325 | |
Number of raised Inactive loans | 0 | 210 | |
Amount of Paying Back Loans | $71,900 | $153,056,325 | |
Number of Paying Back Loans | 166 | 186,037 | |
Amount of Ended Loans | $243,125 | $1,340,495,400 | |
Number of Ended Loans | 718 | 1,758,700 | |
Delinquency Rate | 16.38% | 20.93% | |
Amount in Arrears | $8,137 | $20,259,038 | |
Outstanding Portfolio | $48,734 | $96,807,161 | |
Number of Loans Delinquent | 103 | 70,426 | |
Default Rate | 9.96% | 1.73% | |
Amount of Ended Loans Defaulted | $24,224 | $23,256,282 | |
Number of Ended Loans Defaulted | 153 | 57,823 | |
Currency Exchange Loss Rate | 0.81% | 0.40% | |
Amount of Currency Exchange Loss | $2,564 | $6,269,200 | |
Refund Rate | 3.19% | 0.62% | |
Amount of Refunded Loans | $10,050 | $9,329,075 | |
Number of Refunded Loans | 21 | 8,661 |
Loan Characteristics On Kiva
This Field Partner | All Kiva Partners | ||
Loans to Women Borrowers | 42.00% | 76.91% | |
---|---|---|---|
Average Loan Size | $246 | $393 | |
Average Individual Loan Size | $297 | $606 | |
Average Group Loan Size | $541 | $1,777 | |
Average number of borrowers per group | 2.8 | 7.9 | |
Average GDP per capita (PPP) in local country | $15,600 | $5,712 | |
Average Loan Size / GDP per capita (PPP) | 1.58% | 6.89% | |
Average Time to Fund a Loan | 0.99 days | 7.79 days | |
Average Dollars Raised Per Day Per Loan | $249.28 | $50.47 | |
Average Loan Term | 18 months | 11.37 months |
Journaling Performance on Kiva
This Field Partner | All Kiva Partners | ||
Total Journals | 816 | 931,328 | |
---|---|---|---|
Journaling Rate | 89.79% | 43.19% | |
Average Number of Comments Per Journal | 0.00 | 0.03 | |
Average Number of Recommendations Per Journal | 0.00 | 0.69 |
Borrowing Cost Comparison (based on 2017 data)
This Field Partner | Median for MFI's in Country | All Kiva Partners | ||
Average Cost to Borrower | 24% APR | 74.00% PY | 26.46% PY | |
---|---|---|---|---|
Profitability (return on assets) | 44.1% | 1% | -0.69% | |
Average Loan Size (% of per capita income) | N/A | 4.00% | 12.07% |
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
Field Partner Staff
Ana Lucia CollMónica Daniela Morales Campos
Fernanda Sanchez
Pablo Velázquez
Manuel Wiechers