Uganda's solar market has experienced steady growth and has currently approximately 1.1 MW of installed PV capacity with over 30 companies operating in the PV market. The PV market has been encouraged by government projects and donor support within the institutional (especially rural) sector and solar home systems, whilst solar water heating is still in its infancy.
Opportunities within the PV sector are underlined by an ambitious target by the government to supply 61 % from a current 4 % of total consumed energy from renewable sources by 2017. Solar shall be a component but a target is not specified yet. The greatest potential is identified in the segment of solar home systems.
The Rural Electrification Agency publishes subsidies and targeted approaches to encourage PV implementation, and has worked with the private sector, in co-operation with the World Bank, through the Energy for Rural Transformation Initiative for cost-sharing and market development.