Recoverable Grant Term Sheet

Recoverable Grant for Community Microgrid

1. Grantor (Funder):

Green Future Foundation (GFF)

2. Grantee (Recipient):

Nearly Free Energy Co-op Ltd.

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 investment or acquisition of > $100,000	Grantee repays full grant or 10% of the investment value, whichever is lower

 

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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.

10. Dispute Resolution:

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