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  • The Prosol program in Tunisia successfully scaled the adoption of solar water heaters (SWHs) by combining capital subsidies, concessional credit, and a strategic risk-sharing mechanism. Between 2005 and 2010, it leveraged USD 24.2 million in public funds to attract USD 110 million in private investment, installing approximately 119,000 systems. A critical success factor was the involvement of the state utility, STEG, which acted as a debt collector and guarantor, reducing credit risk for commercial banks and lowering interest rates for households. The program not only reduced CO2 emissions by 715 Kt over the systems' lifespans but also generated a net fiscal gain for the Tunisian government by reducing fossil fuel subsidy expenditures by an estimated USD 101 million over the long term.

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    Climate Policy Initiative

    Document type: Case study

    Regions: Tunisia
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