# Recoverable Grant Term Sheet - 50k Example

**1. Grantor (Funder):**

Green Future Foundation (GFF)

**2. Grantee (Recipient):**

Nearly Free Energy Co-op (NFE)

**3. Purpose of Grant:**

To fund the capital expenditure and initial setup of a 20 kW solar microgrid serving 50 households in \[Community Name\], Uganda.

**4. Grant Amount:**

$50,000 USD

**5. Disbursement Schedule:**

- 40% upfront upon signing agreement
- 30% upon installation of core infrastructure
- 30% upon commissioning and first billing cycle

### **⚖️ 6. Recoverability Clause (Repayment Terms):**

<table id="bkmrk-trigger-repayment-te"><thead><tr><th>**Trigger**

</th><th>**Repayment Terms**

</th></tr></thead><tbody><tr><td>If the microgrid achieves <span class="s1">**≥ $1,000/month in net revenue**</span> for 6 consecutive months within 3 years

</td><td>Grantee repays the full grant amount over 4 years, at 0% interest

</td></tr><tr><td>If the project is not commercially viable by year 3 (e.g., &lt; $1,000/month in net revenue)

</td><td>No repayment is required

</td></tr><tr><td><span class="s1">If the grantee </span>**secures follow-on grant investment**<span class="s1"> **of** &gt; $100,000</span>

</td><td>Grantee repays full grant or 10% of the investment value, whichever is lower

</td></tr></tbody></table>

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**7. Use of Funds:**

- Solar panels, batteries, smart meters, inverters
- Site preparation and installation labor
- Community training and billing setup
- Product development for Microgrid OS

**8. Reporting Requirements:**

Quarterly reports for 3 years on:

- Energy generated and distributed
- Financial performance
- Number of customers served
- Maintenance issues and resolutions

**9. Intellectual Property (IP):**

All software or monitoring systems developed under this project must remain open-source and licensed under AGPL or GPL or any other [Free Software license](https://www.gnu.org/licenses/license-list.html)

**10. Dispute Resolution:**

Mediation first, then arbitration in Uganda under the Uganda Centre for Arbitration and Dispute Resolution (CADER).