San Giorgio Group Case Study: Prosol Tunisia

The Prosol program (2005-2010) successfully scaled the deployment of solar water heaters in Tunisia by combining capital subsidies, concessional credit, and a unique risk-mitigation framework. By leveraging the state utility STEG as a debt collector and guarantor, the program reduced credit risk for commercial banks, leading to a 1:5 public-to-private investment ratio. The initiative not only increased installed capacity fivefold but also generated significant fiscal returns for the Tunisian government by reducing expenditures on liquefied petroleum gas (LPG) subsidies.

• Between 2005 and 2010, Prosol achieved a high leverage ratio where every dollar of public resources mobilized nearly five dollars of private capital, with total investment reaching approximately USD 134 million.
• The program significantly increased the adoption of solar water heaters, with the annual capacity installed increasing fivefold compared to previous initiatives, resulting in a total installed base of about 119,000 systems.
• Prosol provided a net financial gain for the Tunisian government by displacing fossil fuel subsidies; between 2005-2010, it saved USD 15.2 million in LPG subsidy outlays, with projected lifetime savings of USD 101 million against an initial investment of USD 21.8 million.
• The involvement of the state-owned utility STEG was critical in mitigating credit risk for banks by acting as a debt collector, enforcer, and guarantor, which allowed for lower interest rates and near-zero loan default rates.
• Environmental benefits over the lifespan of the installed systems include the avoidance of 251 Ktoe of fossil fuel consumption and 715 Kt of CO2 emissions.
• The program stimulated local economic development, growing the domestic solar thermal industrial cluster from one local supplier in 2002 to nine local manufacturers in 2009, and potentially creating 3,000 new direct jobs.
• Prosol reduced the Levelized Cost of Energy (LCOE) for households by 18-25% and shortened the investment payback period by approximately 4 years through capital subsidies and softened credit conditions.
• While successful in the residential sector, the Prosol model faced challenges in the tertiary sector (hotels) due to the absence of a STEG-equivalent debt servicer and the high competitiveness of subsidized natural gas compared to LPG.

APA

Trabacchi, C., Micale, V., & Frisari, G. (2012). San Giorgio Group Case Study: Prosol Tunisia. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Prosol-Tunisia-SGG-Case-Study.pdf

Chicago

Trabacchi, Chiara, Valerio Micale, and Gianleo Frisari. San Giorgio Group Case Study: Prosol Tunisia. Climate Policy Initiative, 2012. https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Prosol-Tunisia-SGG-Case-Study.pdf.

Wikipedia

{{cite report |last1=Trabacchi |first1=Chiara |last2=Micale |first2=Valerio |last3=Frisari |first3=Gianleo |title=San Giorgio Group Case Study: Prosol Tunisia |publisher=Climate Policy Initiative |date=June 2012 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Prosol-Tunisia-SGG-Case-Study.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{trabacchi2012san, author = {Trabacchi, Chiara and Micale, Valerio and Frisari, Gianleo}, title = {{San Giorgio Group Case Study: Prosol Tunisia}}, institution = {Climate Policy Initiative}, year = {2012}, month = jun, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Prosol-Tunisia-SGG-Case-Study.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }