Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner. 


Status update — January 25, 2016

After 29 months on Kiva and 242 loans fundraised, TECNOSOL has graduated out of Kiva’s Experimental Partnership program and been given a risk rating of 1 star. 

Partner description:

TECNOSOL is a for-profit renewable energy company that provides electricity to families living off the grid in Nicaragua. By selling solar home systems at affordable prices, it enables households to generate their own energy and replace toxic and expensive sources of light and heat like kerosene, diesel and wood.

Founded in 1998, TECNOSOL has grown to comprise 70 to 80% of the solar home system market in Nicaragua. Today, it has 17 regional branches serving extremely remote, rural areas -- including branches in El Salvador, Honduras and Panama. And at the end of 2011, it had installed more than 40,000 solar panels benefiting about 250,000 people and saving them an estimated $1.1 million per month on kerosene.

In addition to lights, TECNOSOL’s solar home systems can run refrigerators, freezers, water pumps, televisions, radios, cell phone rechargers and even electrical fences to increase security for livestock. This is extremely important in Nicaragua, where at least 2.5 million people -- 35% of the population -- live off the grid.

The company imports the solar panels, stores, distributes and sells them, and provides after-sale maintenance and repairs. It is distinguished by its emphasis on customer service at every stage of the supply chain, helping accelerate adoption of solar technologies where people may not otherwise be interested. While solar remains the company’s focus, it has also branched into thermal, biomass, wind and hydro energy solutions.

 User-added image

A unique approach to lending

Many of TECNOSOL’s customers cannot afford the extremely high upfront costs of buying solar home systems. The lack of financing options is one of the biggest limitations for growth of solar in Nicaragua. Investing in solar is considered to be too risky for most formal financial institutions.

Kiva loans help these households purchase solar home systems. Borrowers are required to make a 20% down payment and pay an annual interest rate of 20% to TECNOSOL. This may sound high, but it’s necessary to help the company reach into rural regions where no other distributors or even microfinance institutions work. TECNOSOL uses all interest to cover operational costs of providing loans, not to make a profit.

Borrowers are helped in making repayments on their loans by saving on kerosene.  The average home solar system replaces about 270 liters of kerosene a year, at a cost of US$1.27 per liter. This translates into annual savings of US$340, which pays back the costs of the home solar system within three years.

Home systems can also help borrowers generate additional income by providing neighbors with electric services like phone and lantern charging. TECNOSOL’s products also enable shop owners and entrepreneurs to increase their productivity through solar-powered refrigerators that eliminate waste, longer store hours, and by selling cold drinks and ice.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jul 2, 2013 Oct 12, 2005
Total Loans $270,400 $874,960,175
Amount of raised Inactive loans $0 $710,400
Number of raised Inactive loans 0 536
Amount of Paying Back Loans $189,675 $136,648,425
Number of Paying Back Loans 295 167,060
Amount of Ended Loans $80,725 $737,601,350
Number of Ended Loans 169 916,439
Delinquency Rate 6.25% 8.46%
Amount in Arrears $9,373 $7,476,165
Outstanding Portfolio $150,045 $88,321,485
Number of Loans Delinquent 49 22,435
Default Rate 10.31% 1.32%
Amount of Ended Loans Defaulted $8,327 $9,707,641
Number of Ended Loans Defaulted 26 27,160
Currency Exchange Loss Rate 0.00% 0.44%
Amount of Currency Exchange Loss $0 $3,823,595
Refund Rate 0.00% 0.65%
Amount of Refunded Loans $0 $5,700,625
Number of Refunded Loans 0 5,834

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 34.48% 74.90%
Average Loan Size $583 $407
Average Individual Loan Size $583 $640
Average Group Loan Size $0 $1,805
Average number of borrowers per group 0 7.8
Average GDP per capita (PPP) in local country $4,800 $5,934
Average Loan Size / GDP per capita (PPP) 12.14% 6.86%
Average Time to Fund a Loan 3.71 days 6.92 days
Average Dollars Raised Per Day Per Loan $157.17 $58.85
  Average Loan Term 21.44 months 11.06 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 19 447,696
  Journaling Rate 6.70% 41.57%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.27

Borrowing Cost Comparison (based on 2015 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 20% APR 27.00% PY 26.87% PY
  Profitability (return on assets) 0.3% 0.9% -0.78%
  Average Loan Size (% of per capita income) N/A 40.00% 18.82%

Country Fast Facts

Field Partner Staff

Alfonso Barquero
Jonny Castillo
Jairo Cuadra
Vladimir Delagneau
Noelia Ortez
Hector Urbina