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): 

 

 

 

 

 

 Trigger 

 

 

 Repayment Terms 

 

 

 

 

 

 

 If the microgrid achieves ≥ $1,000/month in net revenue for 6 consecutive months within 3 years 

 

 

 Grantee repays the full grant amount over 4 years, at 0% interest 

 

 

 

 

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

 

 

 No repayment is required 

 

 

 

 

 If the grantee secures follow-on grant investment of > $100,000 

 

 

 Grantee repays full grant or 10% of the investment value, whichever is lower 

 

 

 

 

 

 

 

 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 

 10. Dispute Resolution: 

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