NFE Commercial Reliable Power Microgrids
Summary page, current as of 21 October 2026. Owner: Aaron Tushabe. The detail lives in the pages linked below. The 18 Sep "Team Review Pack v0.1" this page used to hold is in its revision history.
What it is
A Commercial Reliable Power MicrogridsMicrogrid (RPMs)RPM) is NFE's Energy as a Service offer for commercial facilities. NFE designs, finances, installs, owns and operates the battery, inverter, solar, metering and controls behind the facility's power supply. The customer buys electricity per kWh at the applicable ERA Code 10.2 time-of-use tariff, the same rate it pays UEDCL, with reliability included and no equipment to buy. It can choose to buy the system from year 5.
PhaseNFE 2adds financialno premium for reliability. Its return comes from solar: kWh that NFE's panels supply directly in the daytime, and bankabilitysolar modelstored |in the battery for the 18:00–24:00 peak, replace grid electricity NFE would otherwise buy at the same tariff it sells at.
The offer: current terms (set 6 Oct 2026)
These were agreed for the Worship Harvest worked example
STATUS
Team Review Draft
|
VERSION
0.1
|
DATE
18 Sep 2026
|
Core proposition
NFE sells reliable electricity as a service at approximately the customer's applicable utility tariff. The customer pays for energy used, not equipment. NFE owns, operates, maintainsproposal and replaces the reliability infrastructure, with an optional Phase 4 path to ownership.
|
1. Purpose of this document
This pack is intended to support the NFE weekly team review on the emerging Commercial RPM model. It captures the current product logic, a worked Phase 2 case, preliminary financing structure, customer-screening thresholds, model definitions and the decisions still required before NFE treatsare the model asthe investment-ready.funders' pitch describes.
Reference customer: Worship Harvest Ministries, using customer-supplied UEDCL bills and account movements.
Benchmark: Sawa Energy's Bellavista solar + battery lease-to-own proposal was used as a commercial-structuring reference, not as NFE's pricing model.
Status: Pre-feasibility / internal investment model. Site metering, EPC quotations, regulatory confirmation and credit underwriting remain required.
2. The Commercial RPM model
| Term |
Phase
Customer outcome
|
NFE activity
| Position |
| Energy 1 - Measure & Manage
price |
The Establishapplicable anERA evidence-basedCode load10.2 andtime-of-use outagetariff baseline. per | kWh. Applicable Installtaxes intervalare metering,shown characterize peak/shoulder/off-peak demand, identify critical loads and quantify current backup costs.
separately. |
2 - Reliable Power
Reliability |
Included At leastin the contractedenergy criticalprice. loadNo remains powered through normal outages.
|
Deploy storage, inverter/control infrastructure and enough PV to help finance theseparate reliability layer.
fee. |
| Upfront 3cost -to Energythe Optimization
customer |
None. LowerNFE grid dependencefunds and optimize energy cost/reliability.
|
Expand PV/storage, optimize dispatch and progressively useowns the grid as a secondary source.
equipment. |
| Minimum 4monthly - Ownership Option
payment |
From Customercommissioning, maythe choosegreater of the actual metered energy charge or 50% of the reference monthly energy charge agreed after Phase 1. It replaces a lower bill and is never added on top. Service-performance credits apply if NFE fails to acquiredeliver.
|
| Utility account |
NFE prefers to manage and pay the installedcustomer's system.UEDCL bill and issue one consolidated energy bill. The customer decides during Phase 1. Formal transfer of the account only if needed. |
| Regulatory approval |
ERA Executecertificate aof predefinedregistration buyout/transferfor mechanismthe thatmicrogrid.
|
| Ownership |
Optional purchase from year 5 ("Ownership stage"), subject to agreed terms. |
| Not yet standard |
Contract term (15 years in the first protectsproposal), anydeposit, outstandingSLA lenderwording, obligations.tariff indexation and early termination. See the open questions below. |
3.
Why Worshipeach Harvest:term currentwas evidencechosen: baseCommercial RPM decision log.
Who it is for
| Monthly Metric consumption |
Fit |
Working value
|
HowWhat to treat it
|
| do
| Below Average~1.5 monthly electricity consumption
MWh |
Below ~6.9the MWh/month preliminary economic threshold |
Generally Derived from four supplied detailed UEDCL bills; use asoutside the current baseline, not a guaranteed future load.
target |
| 1.5–2 Annualized electricity consumption
MWh |
~82.9 MWh/year
Marginal |
Assess Used for the current screening model.
selectively |
| 2–3 Observed load mix
MWh |
Meets ~29%the peakscreening / 52% shoulder / 19% off-peak
threshold |
Target Usefulfor because the 18:00-24:00 peak period exactly matches the requested six-hour backup window.
assessment |
| 3 RecentMWh utilityand payment behavior
above |
Stronger Bills in the supplied statement were substantially/fully cleared within the billing cycles shown.
candidate |
Positive early credit signal, but not a substitute for full credit underwriting.
|
Phase 2 reliability target
|
At least 6 hours during 18:00-24:00
|
Must be validated with interval data and critical-load definition.
Prioritise |
4.
Beyond Preliminaryvolume, Phasegood 2candidates technicaluse designmost of their electricity in the day and evening (shoulder and peak periods), pay their utility bills reliably, and have roof or ground space for solar. Typical targets: churches, schools, clinics, hotels, offices, supermarkets and small factories. Facilities that run generators for reliability are especially good fits, because replacing the diesel adds to the customer's savings.
How to screen, size and check the margin on a lead: Assessing a Commercial RPM lead.
How a Commercial RPM is delivered
| Phase |
Component
What happens |
| Typical Working design
|
Rationale
| timing
| 1. LFPMeasure battery & Manage |
NFE 120submeters kWhthe nominal facility at 15-minute intervals or finer, ideally after the grid/generator changeover so generator-supplied load is captured. We learn peak demand, evening, Sunday and event loads, outages and generator use, and agree the reference monthly energy charge. The customer decides whether NFE takes over the UEDCL bill. |
Usually Provides3 headroom above historical average peak-period energy, plus usable-depth, conversion-loss and reliability reserve allowances.
months |
| 2. HybridReliable inverter
Power |
NFE 50installs kW,the three-phase battery, the inverter, enough solar to pay for the reliability, and its metering and Microgrid Manager platform. Energy billing and the minimum payment start at commissioning. |
Installation Provides3–6 headroommonths forafter instantaneousthe demandload and motor/otheroutage transientprofiles loadsare that monthly bills cannot reveal.
confirmed |
| 3. SolarEnergy PV
Optimization |
NFE 36-40adds kWpsolar preferred or storage and tunes dispatch as demand and outages change, so the grid and generator become secondary sources. |
PV is not needed to make a 6-hour evening battery work technically; it is included because avoided daytime/peak grid purchases finance the reliability infrastructure.
Ongoing |
| 4. ControlsOwnership / EMS
(optional) |
The NFEcustomer Microgridmay OSbuy +the metering system from year 5 at a buyout set in the contract. The price must at least clear any outstanding project debt. |
From Requiredyear for dispatch, monitoring, billing, alarms, asset health and later portfolio management.
|
Important engineering caveat
Monthly bills show energy consumption, not instantaneous power demand. The 50 kW inverter and 120 kWh battery are preliminary. Phase 1 interval metering should validate the maximum kW demand, critical-load profile, event-day behavior, battery charge window and site power quality before procurement.
5 |
These 5.phases Commercialadapt model:NFE's whereMicrogrid Cultivation Blueprint for commercial customers. In customer documents, call phase 4 the RPM"Ownership marginstage" comesso from
it Theisn't RPMconfused marginwith isstep not4 a("Install surchargeand on the customer tariff. It is the economic spread created when NFE can supply a portioncommission") of the customer'sdelivery electricityplan.
at a lower effective cost thanWhy the utilityeconomics tariffwork
while
preserving the customer-facing price anchor.
Cash-flow layer
|
Illustrative annual value
|
Meaning
|
Customer electricity revenue
|
~UGX 47.0m
|
Energy sold at the utility-equivalent weighted tariff assumption.
|
Gross avoided utility purchases
|
~UGX 34.8m
|
Value created by direct PV plus PV shifted through storage to displace grid purchases.
|
Routine O&M allowance
|
~UGX 2.1m
|
Annual operating/maintenance budget.
|
Battery + inverter lifecycle reserve
|
~UGX 6.9m
|
Explicit reserve contribution for major component replacement rather than assuming these costs disappear.
|
NFE monitoring/billing/site overhead
|
~UGX 1.2m
|
Site-level software, monitoring, billing and operating support allowance.
|
CFADS (internal screening definition)
|
~UGX 24.5m
|
Cash flow available for debt service after the above conservative operating and reserve provisions, before debt service.
|
6. Base-case bankability structure
Item
|
Working assumption
|
InstalledCommercial Phase 2 CAPEX is | a right-sized ~battery for reliability plus enough solar to pay for it. Solar isn't needed to get through an evening outage, but at tariff parity NFE earns little on grid electricity it simply passes through. Solar is what funds the reliability.
- The battery works every day. Solar charges it in the daytime and it supplies the 18:00–24:00 peak (UGX
143m 666.5/kWh). | If
the grid | fails Customerin contractthe term evening, | the battery 15keeps years doing | what
it was | already Seniordoing.
debt
- Worship
| Harvest base 50-55%case (6.9 MWh/month; 120 kWh battery, 50 kW inverter, 40 kWp solar): about UGX 34.8m a year of CAPEXgrid preferredpurchases foravoided, earlyabout projects UGX | 24.5m
a
Sponsor / investor equity
|
45-50%year of cash flow after maintenance, admin and a battery and inverter replacement reserve, and about a 15% project return over 15 years. CAPEX | is
a range | of TargetUGX 120–145m until we have EPC quotes.
- Financing works with shilling debt
tenor
|
10 years minimum
|
Target UGX debt rate
|
<=12% if possible; concessional/project finance preferred
|
Debt Service Reserve Account (DSRA)
|
6 months of scheduled debt service
|
Customer upfront equipment payment
|
Zero
|
Customer tariff
|
Utility-equivalent energy tariff, with contractually defined indexation
|
Ownership
|
NFE/SPV during service term; Phase 4 buyout option subject to lender discharge
|
7. Illustrative 55% debt case
Metric
|
Illustrative result
|
Interpretation
|
Senior debt
|
~UGX 78.5m
|
55% of ~UGX 142.8m CAPEX.
|
NFE/investor equity
|
~UGX 64.3m
|
Before DSRA funding.
|
Annual debt service
|
~UGX 13.9m
|
Assumesat 12% debtor less over 10 years withor levelmore annual(debt service cover of about 1.6–1.9x). Ordinary commercial bank debt service. at | 18–19%
does not | work Basewell. DSCR
|
~1.76x
|
CFADS / scheduled debt service. Provides material cushion above 1.0x.
|
6-month DSRA
|
~UGX 7.0m
|
Liquidity buffer equal to half a year of scheduled debt service.
|
Unlevered project IRR
|
~15.1%
|
Return on the project before debt financing, under the current simplified 15-year constant-real-cash-flow assumptions.
|
Equity IRR
|
~15.6-16.0%
|
Approximate result depending on how/when DSRA is released.
|
Financing conclusion
The economics are much more attractive with long-tenorTarget concessional or projectclimate debt than with ordinary high-cost commercial lending. Early RPMs should prioritize lower leveragefinance, and strong coverage rather than maximizing debt. Portfolio financing can increase leverage later after operating history exists.
|
8. Customer qualification threshold
The current model suggests a theoreticalportfolio break-even/target-returnvehicle threshold(SPV).
near 1.5 MWh/month for a customer with a load shape similar to Worship Harvest. For sales screening, NFE should use a more conservative threshold because fixed costs, site complexity, credit quality, solar yield and load shape vary.
MonthlyAssumptions, usage
|
Screening interpretation
|
< 1.5 MWh
|
Usually below current economic threshold for a stand-alone Commercial RPM Phase 2.
|
1.5-2.0 MWh
|
Possible but marginal; requires especially favorable site/load/credit conditions.
|
>= 2.0 MWh
|
Recommended first-pass Commercial RPM qualification threshold.
|
>= 3.0 MWh
|
Strong candidate, subject to solar-compatible demand and site/credit quality.
|
Worship Harvest: ~6.9 MWh
|
Comfortably above the consumption threshold; the remaining work is engineering, regulatory, creditsensitivities and financing validation. structures: | Commercial
RPM
9. Bankability riskseconomics and mitigations
Riskbankability.
| Where | things stand (21 Oct 2026)
WhyWorship itHarvest, matters the | first commercial Proposedcustomer: mitigation the | proposal
(with the company profile) | and Volumea risk one-page |
Customer payssummary for energytheir used;leadership went out on 6 Oct. Next step: Worship Harvest agrees to start Phase 1. See Worship Harvest.
- Website: the Products section presents Residential RPMs (50–500 residents) and Commercial RPMs (at least 2 MWh/month) under "Energy as a Service, not another equipment project" (since 1 Oct).
- Strategy: NFE
debtplans serviceto doesbuild notmore fallcommercial ifthan customerresidential consumptionmicrogrids contracts. (2 | Oct). The LowerRoadmap leveragedoesn't forshow earlythis sites;yet.
strong- Funders'
customer underwriting; termination protection; considerpitch: a modestrevision minimumpresenting annualCommercial energy commitment only where financing requires it.
|
Tariff/indexation risk
|
A fixed customer tariff can become uneconomicRPMs as utilitythe pricesnear-term expansion priority alongside Residential RPMs is in draft (v0.1, 21 Oct). The fundraising amount and operatingdeployment costsmilestones change. need | settling
Contractually mirrorbefore the applicableweb utilitypage tariffchanges.
structure- Competition:
orSawa define a transparent indexation formula.
|
Credit/collection risk
|
Energy revenuesells islease-to-own the project cash flow.
|
Credit review, payment history, deposits, remote metering, clear default/curtailment proceduressolar and diversifiedstorage. portfolio. See | Sawa
Energy's Bellavista | proposal.
Technology/lifecycle
risk
Open |
Battery/inverter replacement can destroy economics if omitted.
|
Explicit replacement reserve, manufacturer warranties, standardized equipment and remote health monitoring.
|
Performance risk
|
PV yield or storage availability may underperform assumptions.
|
Conservative yield, performance guarantees where available, commissioning tests and reserve margins.
|
Regulatory risk
|
The legal structure for on-site generation/resale/EaaS must be valid.
|
Obtain Uganda-specific regulatory/legal confirmation before financial close and standardize the compliant contract structure.
|
EPC / construction risk
|
Cost overruns or poor installation can impair returns and safety.
|
Competitive RFQ, fixed-price scope where feasible, commissioning acceptance tests and appropriate EPC warranties.
|
10. Proposed cash-flow waterfall
questions
- Reliability
Customerpromise.
paysHours NFEof forbackup, meteredavailability electricity%, underor both? What the EaaSSLA contract.covers and how service credits work.
- Tariff
NFE/SPVmirroring.
paysWhich utility/gridUEDCL energycharges costswe andmirror other(fixed variable energy costs.
NFE/SPV funds routine O&M and operating expenses.
NFE/SPV funds the agreed battery/inverter lifecycle reserve.
Remaining operating cash is CFADS for lender purposes under the internal screening model.
Scheduled senior debtor service ischarges, paid.
Required DSRA top-up, if any, is funded.
Residual distributable cash is available to NFE / equity investors.
11. Decisions requested from the NFE team
Decision
|
Current working position
|
Team discussion
|
Commercial Phase 2 product definition
|
Battery reliability + enough PV to support the economics.
|
Confirm whether this becomes the standard default or remains site-specific.
|
Customer tariff promise
|
Utility-equivalent tariff, not an equipment lease.
|
Define exactly which utility charges are mirroredVAT) and how tariff changes flow through. through |
Reliability promise
|
6-hour outage coverage for contracted critical load.
|
Decide whetherto the productcustomer.
SLA- Hardware.
shouldCommercial becustomers framedand asEPCs hours,may availabilityexpect %,SMA- or both. BYD-class | equipment
(Hillary, 12 | Sep). DebtOur strategy CAPEX | benchmarks use 50-55%budget-brand debtretail forprices, earlyso projects;we targetneed <=12%,a 10+C&I years. hardware | scenario.
- Thresholds.
ConfirmThe acceptable leverage1.5 and target lender categories.
|
Customer minimum usage
|
No hard minimum in the preferred customer proposition.
|
Decide whether a soft minimum annual energy commitment is acceptable when a lender requires it.
|
Phase 4 ownership
|
Predefined buyout from a stated year, subject to lender discharge.
|
Agree lockout year and buyout methodology.
|
Commercial screening threshold
|
>=2 MWh/month first-passthresholds screen. came | from the Confirmfirst, lighter model. Re-run them with the bankability model's replacement reserve and addthe load-shape,50% creditminimum payment.
- Financing. Which lenders (for example UDB's climate finance facility), how much debt on early projects, and
site criteria.
|
Portfolio/SPV structure
|
Preferred long-term financing architecture.
|
Decide when to establishset up a project or portfolio SPV. Shilling borrowing is likely to get dearer after the first14 RPMOct project/portfoliorate SPV. rise | (Macro
Install/obtain interval metering for Worship Harvest and identify critical vs. discretionary loads.
outlook).
Request at least two local EPC/vendor quotations for the 120 kWh / 50 kW / 36-40 kWp design range.
Refresh the model with quoted CAPEX, warranty terms, installation scope and realistic replacement assumptions.
Confirm the legally compliant Uganda EaaS / on-site resale structure and required permits/licences/exemptions.
Complete a customer credit review and obtain a longer utility-payment history if available.
Develop the standard Commercial RPM EaaSStandard term sheet:sheet. tariffDeposit, indexation,early SLA,termination deposit,payment, termination,site access, insurance and Phasethe 4year-5 buyout.
buyout method.
- A
Prepareshared model.
The calculations so far live in a lender-facingChatGPT modelconversation. with monthly cash flows, debt amortization, downside cases and covenant tests.
Build a pipelinespreadsheet scorecardthe so NFEteam can screenuse commercialand leads consistently before spending engineering time.
check.
AppendixRelated A - Model assumptions that must be refreshed before investment approval
Assumption
|
Current working value
|
Validation method
|
Annual load
|
~82.9 MWh
|
12 months of bills + interval metering
|
Solar yield
|
~1,500 kWh/kWp/year
|
Site-specific PV simulation / irradiation dataset
|
Installed CAPEX
|
~UGX 143m for 120 kWh + 50 kW + 40 kWp
|
Competitive EPC/vendor RFQs
|
Project term
|
15 years
|
Customer contract negotiation
|
Debt cost / tenor
|
12% / 10 years illustrative
|
Lender term sheets
|
Lifecycle reserve
|
Modelled explicitly
|
Warranty, cycle-life and replacement-price analysis
|
Utility-equivalent tariff
|
Working weighted energy price from current tariff structure
|
Refresh at proposal date and define indexation
|
Customer load shape
|
Historical TOU shares from bills
|
Interval metering
|
Regulatory structure
|
Not yet confirmed
|
Ugandan legal/regulatory review
|
Appendix B - Interpretation discipline
pages
DoSource: notAaron's presentChatGPT IRR,working DSCRsession or"Commercial RPM Modeling" (18 Sep–21 Oct 2026) and the 2check-ins MWh/monthabove. thresholdLast withoutreviewed the21 underlyingOctober assumptions;2026 theyby areAaron outputs of this model, not universal constants.Tushabe.
Equipment prices, tariffs and financing costs are time-sensitive and must be refreshed before every investment decision.
The model should eventually move from annual averages to monthly/hourly dispatch so reliability and cash flow are tested together.