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2021-03-31-accounts

ANNUALREPORT ANDFINANCIALSTATEMENT 1april2020-31march2021

WHY WE EXIST

578 million people across Africa live without access to electricity. Without electricity, families, communities, and businesses are limited. Millions rely on expensive and dangerous alternatives for basic lighting, such as candles and kerosene.

We are working to change this. We believe light changes everything and our vision is of a world where everyone has access to clean, renewable energy. Solar lights and systems can transform rural communities overnight by providing safe, clean, and reliable light and power in homes, schools, and health facilities. With a solar light, families can work, study, and feel safe after dark.

Just one lamp can transform the future for an entire family and can become the first step out of poverty. Over the past 15 years, SolarAid has distributed over 2.1 million solar lights across Africa, reaching 11.3 million people with clean, renewable light.

OUR SOCIAL ENTERPRISE: SUNNYMONEY

We believe that universal access to renewable energy is the best way to alleviate poverty. The best way to ensure universal access to energy is by building local, sustainable businesses. Therefore, we have adopted a model where we create a local market which allows our solar lights to reach the people and places that the traditional market does not reach.

Through our award winning social enterprise, SunnyMoney, and other partner organisations, we help create access to solar power and lighting by catalysing solar markets in rural communities without access to electricity, and by continually developing innovative models that go beyond the market. This way we bring solar light and power to those who need it most.

Our mission is to light up every home, school, and clinic in Africa by the end of the decade - using safe, clean solar power.

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Table of Contents

Why we exist
Welcome from our CEO
Building support for our mission
Powering homes
Powering schools
Powering clinics
SolarAid's impact 2020-2021
2020-2021 Highlights
The COVID-19 response
Mayi Walas
Light a village
The year ahead
The SDG's
Thank you
Key policies and processes
Structure governance and management
Statement of trustees' responsibility
Auditors
Trustees, key staff and professional advisors
Independent auditor's report to the members
Consolidated statement of financial activities
Consolidated balance sheet
Statement of cash flow
Notes to the consolidated accounts
Where we work
Message from the Chair		 1
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14-15
16-17
18-19
21-22
23-24
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27-30
31-32
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36-40
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44-53
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MESSAGE FROM OUR CHAIR

Against the backdrop of the global COVID-19 pandemic, 2020/21 was a pivotal year for SolarAid. The board of trustees is hugely proud of the staff team who demonstrated resilience and continued delivering on impact, whilst coping with significant disruption and personal challenges. We end the year stronger than ever because of them and because of our supporters, who continue to put faith in our mission.

Jeremy Leggett, founder of SolarAid, stepped down as Chair in February 2021. As incoming Chair, I would like to give huge credit to Jeremy, who succeeded in making his vision a reality. At the same time as creating a successful for-profit solar company, Solarcentury, he recognised the need and opportunity for a not-for-profit organisation to help bring solar power to African domestic markets.

With solar enterprise now taking off in major African markets, our mission has shifted to centre around those with least access to energy; to those most disadvantaged, who continue to face danger from darkness and unsafe alternatives. We continue to believe in a social enterprise model, creating decent work and sustainable interventions, but we recognise that the hardest to reach will remain in the dark without further innovation. Although the idea is simple enough, implementing it will be hard. We choose to do the difficult.

Covid-19 hit just as our teams were implementing scale-up and trialling new partnership models. Staff welfare is a priority for the Board, and we are hugely proud of our country teams, who put new plans in place to do what they could in very difficult circumstances. Some things were put on pause, but the teams also adapted to carry on and ramp up activities where needed most. I am hugely proud of the positive impact they have had on so many lives, bringing light and hope during these difficult times.

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With a pivot in strategy, we also chose to strengthen the board. In February 2021 we welcomed three new Board members, bringing diverse experience and useful new perspectives.

Ujunwa Ojemeni is an energy and development expert with finance and policy experience focussed on driving the achievements of SDG7. She is also a passionate advocate for gender inclusivity.

Jamal Gore is an expert in sustainable energy and climate change initiatives, having worked for many years across Africa and Latin America.

Simon Usher is an experienced international development strategist with a passion for issues relating to the most marginalised.

As ever, our ability to grow, to test new models, and to expand into new territories is only limited by our ability to attract predictable flows of funding. Our core supporter base has been phenomenal, and I want to thank each one of you that has continued to support us through our transition, especially through this difficult year. The board is particularly delighted that Statkraft, which acquired our long term corporate partner SolarCentury, confirmed their commitment to support SolarAid for the next three years. Their £2 million commitment allows us to properly plan ahead and invest in our mission.

As we face so many global challenges, from climate change to the pandemic, we remain grateful to all of our partners, who allow us to improve the lives of those largely forgotten, those who can greatly benefit from solar light, ending the darkness and providing a better quality of life and countless opportunities.

Mirjana Skrba, Chair of Trustees

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Welcome from
our CEO
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Working through a global pandemic has been a challenge for us all. For SolarAid, it meant that we have had to continually adapt the way we work as we prioritise the health and safety of our staff and the communities we work with. However, despite the challenges we have been facing as an organisation, and as the world at large, we are immensely proud of what we have achieved together over the past year.

We have been amazed by the continuing support from our supporters, despite facing many challenges of their own. We thank you - this work cannot continue without you. Your support has fired on the positive attitude of our team members and I have been struck by their unwavering commitment to delivering on our mission.

At the same time, we know we have the solutions, the technology, and innovative models needed to keep battling energy poverty and fight climate change.

In this report you will be able to read about how we have continued to bring solar power and lighting to the homes, schools, and health facilities that need it most. We are committed to ensuring that no one is left behind. No one is left in the dark. Thank you.

John Keane, CEO SolarAid

However, the need for solar lighting and access to clean renewable energy has not gone away. Millions of families are still living in poverty, without access to electricity in their homes, schools or health facilities and there is an alarming increase in extreme weather, as a result of the changing climate, which is impacting the poorest, most vulnerable communities the most.

"We have been amazed by the continuing support from our supporters, despite facing many challenges of their own. We thank you - we cannot do this work without you."

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people in sub-Saharan Africa without access to electricity. health clinics in sub-Saharan Africa lack reliable access to electricity. of schools in sub-Saharan Africa are without access to electricity. 548M 3 IN 4 65%

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BUILDINGSUPPORT FOROURMISSION

Together with our supporters across the world, our UK based team switched to online remote working as we all got used to the new normal as the Covid-19 pandemic descended upon us. We did our very best to keep each other’s spirits up with daily online team meetings. We also made the decision to downsize to a smaller office, with many team members now embracing a more flexible work culture, splitting time in the office with remote working. This also helps save money.

SolarAid and SunnyMoney teams switching to remote working.

As the pandemic began to spread across Africa, we were able to launch our Moment of Sunshine Appeal, which our wonderful supporters quickly responded to! This enabled us to get emergency light and power to where it was needed the most. Working together with local health ministries, we distributed thousands of solar products to health workers, clinics and emergency facilities across Malawi and Zambia.

We also carried out a review of our overall mission as an organisation. We are proud to have led the way to help establish and catalyse solar markets across Kenya, Tanzania, Uganda, Malawi, Senegal and Zambia. This means that many people will now gain access to solar lighting and power without us. However, many homes, schools and clinics remain in the dark. Our role, therefore, is ensure that the hardest to reach, most marginalised, populations across the continent also gain access to solar light and power by 2030.

SunnyMoney Malawi delivering solar lights to Covid-19 isolation centres.

An important part of our work will be to focus on designing and testing new, innovative, models which enable us to bring solar light and power to everyone. We will not achieve this alone, however, but rather by open sourcing our work, sharing our knowledge and engaging in partnerships that help us expand our footprint and get solar light and power out to where it is needed most.

2021 also saw us launch an exciting new website and grow both our operational team and our board of trustees, as we continue to build support for our mission.

Young students at St. Luke's in Brighton at their yearly SolarAid fundraiser.

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MALAWI IMPACT

303,023 S O L A R L I G H T S D I S T R I B U T E D

1,581,780 P E O P L E R E A C H E D B Y S O L A R

640,801,829 M O R E C H I L D S T U D Y H O U R S

158,416.5 C O E M I S S I O N S A V E R T E D 2 £8,580,369 S A V E D B Y F A M I L I E S

Mandevu Village, Malawi, hub for 'Project Switch'. Photo: SolarAid / Thoko Chikondi.

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ZAMBIA IMPACT

290,827 S O L A R L I G H T S D I S T R I B U T E D

1,745,834 P E O P L E R E A C H E D B Y S O L A R 1,308,136,065 M O R E C H I L D S T U D Y H O U R S

120,727.3 C O E M I S S I O N S A V E R T E D 2 £11,661,834 S A V E D B Y F A M I L I E S

SunnyMoney Zambia travel long distances to reach rural communities with clean, safe, solar light. Photo: SolarAid/Jason Mulikita.

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A majority of families living in rural Zambia and Malawi lack access to electricity. As the sun sets, it becomes pitch black and even the simplest of chores become a struggle. Studying or working becomes impossible. The lack of access to electricity traps families in poverty and reduces their sense of security.

P O W E R I N G H O M E S

5 7 % O F T H E P O P U L A T I O N L I V E W I T H O U T A C C E S S T O E L E C T R I C I T Y I N Z A M B I A .

I N M A L A W I , O N L Y 1 1 % O F T H E P O P U L A T I O N H A V E A C C E S S T O E L E C T R I C I T Y .

To escape the darkness, many families turn to expensive or dangerous lighting sources such as poor quality torches, candles, kerosene lamps, or even burning straw fires in their homes. These alternatives pollute the environment and the lungs, and can often lead to tragic accidents.

SolarAid works on several fronts to ensure clean, safe solar lighting reaches rural communities. Through local schools and headteachers, we build trust and demand for solar lights. We then train and support local entrepreneurs so they get the lights out in their communities.

We also work with microfinancing models. This helps the entrepreneurs who want to start a business but cannot afford stock to start with. With access to finance, local entrepreneurs from any background can transform their own countries for the better.

On the customer side, even the most affordable solar light can sometimes be too expensive. We have launched several innovative programmes to overcome this problem. We work with Pay-AsYou-Go (PAYG), a financing mechanism which helps spread the cost of a product over time. We have also launched Light Libraries, which allow students to rent a solar light at their school for the night.

In Malawi, we are working with two programmes aiming to light up whole villages through community involvement and energy hubs, Project Switch (2019) and Light a Village (2021). Access to solar can transform the future for a family. A simple solar light gives off hours of clean light throughout the night, and allows families to study, work, and feel safe after dark.

Thanks to the access to solar light, Nelia Mbewe can now help her daughters with their homework at their house in Mandevu Village, Malawi Photo: SolarAid/Thoko Chikondi

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P O W E R I N G S C H O O L S

Living without access to electricity has several implications on a child’s education. Lack of light means children struggle to do their homework and risk falling behind at school. Some families are able to buy poor quality torches, candles, or kerosene for a bit of light, but the toxic smoke can infect a child’s lungs and eyes.

With a solar light, children can study safely and schools can safely stay open after dark.

SolarAid is determined that no school will be left in the dark by 2030. We have an extensive network of local schools in rural communities and we collaborate with head teachers to get solar light to rural families.

In 2019, SolarAid launched Light Libraries, an innovative programme designed specifically to reach the poorest students and their families. Like a book library, but for solar lights - for as little as 1p a day, students can borrow a solar light.

Each Light Library school is also equipped with a solar home system, lighting up classrooms and enabling a higher standard of education.

One solar light gives a student 1,006 extra study hours. One solar light can transform a child’s future.

"Renting solar torches every day and being able to study at night has helped me quite a lot. Now my grades have improved."

- A L I Y A A L I , S T U D E N T , M A L A W I

Aliya Ali, 13 year-old student in Mandevu Village, Malawi, is now able to use solar light to do her homework at night. Photo: SolarAid/ Thoko Chikondi.

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P O W E R I N G H E A L T H C A R E

Without access to power, health facilities are unable to provide modern healthcare. Yet, 3 in 4 health clinics in sub-Saharan Africa lack access to reliable electricity. Health care workers are left to tend to patients in the dark - often with a candle or a mobile torch as their only lighting source. Millions of people, in particular women, children, and the elderly, are left vulnerable.

We have committed to ensuring that no clinic in Africa is left in the dark. Working together with local health partners, we have been developing programmes that aim to demonstrate that plug and play solar systems and handheld medical appliances can be used to develop a sustainable, replicable, and scalable model through which rural health facilities have improved access to a wider range and higher quality of healthcare services.

In Zambia, we partnered with the Ministry of Health to deliver urgent support during the COVID-19 pandemic. With support of the UK Foreign, Commonwealth and Development Office's (FCDO) Frontier Technology Livestreaming programme, we then partnered with Churches Health Association (CHAZ), to launch a Powering Healthcare pilot to deliver solar powered medical equipment and lighting to 10 rural health clinics and test ways to scale up this work.

In Malawi, following on from our COVID-19 response, with the support of ICG, we partnered with the Ministry of Health to bring light, power and energy efficient medical appliances to a further 20 health facilities.

Medical Assistant Geofrey Makawa attends to Magrat Patrick, the last patient to be treated in the dark at Mtimabii Health Centre, Malawi. Photo: SolarAid/Chris Gagnon.

"You can't do anything. You need light to examine your patients, and to run lab tests. Not even the simplest thing you can do without lig ht."

- M A R I A N N E M WA L E , L A B T E C H N O L O G I S T , Z A M B I A

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SOLARAID'S IMPACT 2020 - 2021

42,507 LIGHTS

131,206,141 EX TRA CHILD STUDY HOURS

£1,637,915 SAVED BY FAMILIES

20,356 TONNES OF CO 2 EMISSIONS AVERTED

235,461 PEOPLE REACHED WITH SOLAR

102,502 PEOPLE EX PERIENCING BETTER HEALTH

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2020 - 2021 HIGHLIGHTS

COVID-19 EMERGENCY RESPONSE

As the COVID-19 pandemic spread across the world, SolarAid acted quickly. Knowing that an estimated 75% of health clinics in sub-Saharan Africa lack access to reliable electricity, we partnered with local health authorities to put together a COVID-19 response plan.

We implemented a plan which brought light and power to rural health facilities and newly set up isolation sites across Malawi and Zambia. We also equipped rural health workers with solar powered lights and phone chargers, alongside disseminating important information about the virus to rural villages. In total, we distributed over 4,350 solar lights, chargers and systems.

POWERING HEALTHCARE PILOT ZAMBIA

In 2020, SolarAid started a pilot project as part of the Frontier Technology Livestreaming Programme funded by the Foreign Commonwealth and Development Office. Together with our partner Churches Health Association of Zambia (CHAZ), we are working on providing innovative solutions to increase medical capacity at ten rural Zambian health centres by installing multi-light solar home systems that also power small medical appliances such as pulse oximetres and foetal dopplers.

We are committed to using solar power to improve healthcare provision and ensure that no patient has to be treated in the dark.

MAYI WALAS MALAWI

We recognise that having women at the forefront of our work is essential to achieving our mission. In March 2021, SolarAid launched the Mayi Walas programme in Malawi. This programme combines access to training, finance and long-term business support to strengthen female entrepreneurs to break through the barriers they face in launching, growing, and scaling successful solar businesses.

Rolama Rowole is repairing solar lights for SunnyMoney Malawi. Photo: SolarAid/Chris Gagnon.

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E-WASTE REPAIR APP

In 2019, SolarAid was awarded the Global LEAP e-waste challenge award so we could kick-start new projects designed to extend the life of solar products, develop solar repair infrastructure, and reduce levels of solar electronicwaste. We also ran a take-back scheme in rural Zambia to help people living in remote communities exchange old products for vouchers to help them purchase new ones.

In 2020, we launched a mobile app, as well as a printed manual, to help both customers and repair technicians troubleshoot problems with solar lights and assist repair. We are proud to be introducing new tools, skills, and spare parts that are enabling technicians to extend the life of solar products and reduce levels of e-waste.

LIGHT A VILLAGE MALAWI

In March 2021, SolarAid launched the pilot programme ‘Light a Village’. A programme that aims to provide solar lights to every household, 500 homes, in one single rural village in Central Malawi. In order to achieve this, every home will receive a solar home system for free and pay for their energy usage on a pay-as-you-go-basis. Our goal is to develop a model through which every household is able to access solar powered lighting.

SOLARAID NEW WEBSITE

To achieve our ambitious goal of lighting up every home, school, and clinic in Africa by 2030, we are spreading awareness about our mission and sharing the transformational stories of people whose lives have been transformed by access to solar power. In 2020, we launched our new website allowing us to share the stories of the people we work with and updates on our latest innovations.

ELLESOLAIRE PARTNERSHIP

We are proud to have continued our partnership with ElleSolaire in Senegal, which is supporting female solar entrepreneurs to increase access to solar light and power in rural communities.

Solar light is coming to Kesilina Chiwoza's village in Malawi through our programme 'Light a Village'. Photo: SolarAid / Chris Gagnon

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THECOVID-19 RESPONSE

With 75% of rural health clinics lacking access to power in sub-Saharan Africa, we are dedicated to powering health clinics to build resilience.

In sub-Saharan Africa, 75% of health clinics lack access to electricity. Healthcare staff are treating patients in the dark, and patients are often asked to bring their own candles when visiting clinics. When the COVID-19 pandemic hit in March 2020, we rapidly established partnerships with the Ministries of Health in Zambia and Malawi to put together a rapid response plan to distribute solar products to rural health clinics. Over the coming months, we were able to bring light and power to rural health facilities and COVID isolation centres across the countries.

Lack of access to electricity also meant a slow flow of accurate information about the virus to rural villages. Healthcare staff had difficulties communicating with each other and myths about the virus were spreading in communities. People were not receiving trusted information and advice about how to stay safe. Therefore, we also focussed part of our response on information flow by equipping health workers with solar powered lights and phone chargers which would help them communicate with rural communities, as well as each other.

As our field teams were working from home, we used our extensive database and call centres to contact thousands of rural households and community members to disseminate accurate information about the virus.

Sister Grace Mukupa at St. Paul's Rural Mission Health Centre in Zambia, is attending to a patient. Photo: SolarAid / Jason J Mulikita.

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As the pandemic progressed throughout the year, we recognised how essential light and electricity were for doctors and nurses on the frontline to fight the outbreak of the virus and build resilience. We continued to establish long-term relationships with local health partners to light up more rural health facilities across the countries.

The lack of electricity during the outbreak also affected education for children living in rural communities. During the school closures, physical classes moved to distanced self-study materials and radio lessons. However, in a country where 96% of the rural population lack access to electricity and there is a significant lack of radios in homes, few students in rural areas could attend the radio classes and were rapidly falling behind. This had difficult consequences, such as a dramatic increase in teenage pregnancies and child marriage.

In October 2020, in the Balaka district in Southern Malawi, a response plan was put together to support some of their most vulnerable students through distributing solar powered radios - an initiative that SolarAid could support. The solar powered radios would allow children to access the radio aired classes, as well as provide safe light to study by at night.

The COVID-19 pandemic is not over yet. At SolarAid, we will keep innovating so more people can have access to energy, and local health partners can build greater resilience.

Marriane Mwale, Lab Technician at St. Paul's Rural Mission Health Centre in Zambia, can now run tests even though there are power cuts. Photo: SolarAid / Jason J Mulikita.

"Learners who have been facing different challenges will now have access to solar radios, so that they continue listening to education programs that the government has developed to help those in rural areas and those that cannot manage to come to school because of the COVID-19 pandemic.”

- BRAVE MHONIE, GENERAL MANAGER, SUNNYMONEY MALAWI

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MAYIWALAS

SolarAid has launched a new programme to recruit, train and support female solar entrepreneurs in rural Malawi. Mayi Walas means “Shining Mothers” in Chichewa, Malawi’s national language.

This new programme combines access to training, finance, and long-term business support to empower female entrepreneurs to break through the barriers they face in launching, growing, and scaling successful businesses.

We have developed the Mayi Walas programme to tackle three problems: Energy access in Malawi: 82% of Malawi’s population does not have access to electricity (World Bank 2018).

Women and energy access: Energy poverty disproportionately affects women and girls. As primary users of energy in the home, lack of access to clean and safe electricity means women and girls are disproportionately affected by household air pollution.

Women and business: Women in sub-Saharan Africa face far more barriers than men to launching, growing, and scaling sustainable business due to balancing the demands of household responsibilities and a lack of access to training, financial services, and viable markets.

The Mayi Walas programme sets out to change the narrative on women as victims of energy poverty, recognising that they are in fact key agents of change in accelerating energy access, and we will not achieve our mission without them. There is growing research that women are perfectly placed to bring renewable energy to their communities.

Felia Jimu is the chairperson of the Mayi Wala group 'Kalunga' in Salima, Malawi. She also manages the group’s honey beehive business. Photo: SolarAid/ Mphatso Nswewa.

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As the primary users of energy in the home, female entrepreneurs are best placed to communicate the benefits of solar to female customers, leading to accelerated adoption rates.

Women are trusted members within their communities. They have access to vast social networks beyond the reach of existing markets providing a ready customer base.

Providing viable income opportunities for women is essential to drive communities out of poverty. Female entrepreneurs are strong agents of change, contributing significantly to their communities and national economies. Small and Medium Enterprises (SMEs) owned by women make up 31-38% of the SMEs in developing markets (IFC 2011). Supporting rural women to be successful solar entrepreneurs will be key to accelerating energy access in Malawi.

Over the next 18 months, we will establish 150 Mayi Wala groups (1,500 women) to become thriving solar entrepreneurs, which will provide access to over 90,000 people in rural Malawi.

This year, we have established partnerships with stakeholders that currently work with Village Savings and Loans groups to help us identify established groups who will benefit most from the Mayi Walas opportunity.

Thanks to key funding supporters, we are now beginning to recruit the first 40 Mayi Wala groups planned for 2021. From January 2022, we will roll out the programme to establish the remaining 110 groups across the whole of Malawi. We are excited to see the impact that these “Shining Mothers of Malawi” will have on rural energy access.

----- Start of picture text -----
Thirteen women make up the Mayi Wala group
'Kalunga' in Salima, Malawi.
Photo: SolarAid/ Mphatso Nswewa.
----- End of picture text -----

"I am already seeing the solidarity within the Mayi Wala groups doing solar business. I am motivated by seeing the smile of a woman realising she no longer needs to think/worry of/about income only coming from what little farm produce she has to sell."

- MPHATSO NSEWA, MAYI WALA PROJECT SUPERVISOR, MALAWI

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In Zambia, our ongoing work with Entrepreneurs to reach the most rural areas is increasing. With the increasing number of solar lights distributed, we are also focusing on the full lifecycle of solar products, building local repair capacity to extend product life and looking at ways to reduce e-waste. This photo is an example of reusing the materials of products which have reached their end of life for artistic purposes. Photo: SolarAid/Cortney Paisley

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LIGHTAVILLAGE

Only 4% of the rural population in Malawi has access to electricity. By installing solar home systems in 500 households, a whole village, we can give access to clean, safe light to every family in the village.

Without access to electricity, families are forced to turn to dangerous alternatives such as homemade torches, candles, and kerosene lamps. These options aren’t only expensive, but they are also imperilling health, impairing education, and emitting carbon into the atmosphere.

In February 2021, we launched the project Light a Village in Ntchisi district, Traditional Authority Kasakula, Malawi. Ntchisi is a rural, off-grid village. The majority of people living there make their income from farming with an average income of £50/month. This is mainly spent on food and farm inputs, leaving little for energy consumption. Therefore, in rural villages like Ntchisi, when the sun sets, it gets pitch black quickly.

The families in the village have told us their top priorities for lighting are for cooking, security, and homework, but without access to electricity, many households are forced to choose poor, or dangerous lighting sources as the sun sets.

Even though 67% use battery torches for lighting at night, 26% of households are left to rely on open flames such as kerosene lamps, candles, and grass-fire in their homes for lighting.

Ntchisi District, Malawi, hub for 'Light a Village'. Photo: SolarAid/ Chris Gagnon.

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The average household in Ntchisi uses 4 candles per week. These alternatives are costly and polluting, and they can be dangerous.

Accidents caused by the use of open flames are not uncommon in the village. Bisayi Kaunda, a farmer who lives with his wife and their two children, experienced a terrible accident in 2020 when one of Bisayi’s children was using straw fire to search for ingredients while cooking porridge. The fire came into contact with the grass thatched roof, and the family’s whole house burned to the ground. After that, the family decided to invest in a small torch. However, Bisayi says, “The current torch is too small, and not effective. Besides, using the torch is very costly because it requires buying three battery cells every four days.”

Through Light a Village, solar home systems will be installed in all households in the village, giving the households the option to use solar through a Pay-As-You-Go payment scheme. This will reduce the upfront investment that households must commit to in order to access solar power.

The objective of the project is to test the Pay-As-You-Go service model and ensure that every house in the region has access to affordable, reliable, sustainable, and modern energy to ensure that families will be able to cook, work, study, and socialise at night.

Having access to light in the evening will drastically improve the wellbeing of the community. Not only will the homes in Ntchisi have light, but children will be able to study more, household health will improve, families will save money, and CO emissions will be averted from the atmosphere2 helping to mitigate climate change.

Dalitso Kudala and Brave Mhonie from SunnyMoney training a group of new Customer Service Representatives for Light a Village, Ntchisi District, Malawi. Photo: SolarAid/ Chris Gagnon.

“Many people in the area use firelight in their houses, hence there have been many incidents of house fires.”

- BISAYI KASUNDA, FARMER, NTCHISI

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THE YEAR AHEAD

SUPPORTING ENERGY BUSINESS

Longevity in creating and maintaining a solar lighting market will be achieved by creating an ecosystem of independent, successful businesses. In Zambia, we will continue to recruit, train and support solar agents to serve rural communities across the country. In Malawi, we will continue to develop a nationwide network of energy businesses, which are run by independent ‘Super Agents.’

LIGHT LIBRARIES

We will conclude the learnings from the Mankhamba zone pilot in Malawi to inform our scale-up plans. We will be engaging with the Ministry of Education as well as Local Education Authorities to ensure the model will be launched in partnership.

As of January 2022, we will begin scaling our Light Libraries programme across the whole of Malawi. We will begin launching in areas with established energy businesses to ensure the growing demand can be fulfilled.

REPAIR AND RECYLING

We will be continuing to develop solar light repair networks in Malawi and Zambia ensuring that spare parts are available alongside the tools and training needed to help extend the life of aging solar products and to reduce e-waste. We will also be receiving more feedback on the repair app we developed to help customers troubleshoot problems and technicians to undertake successful repairs.

SUBSIDY AS A BUSINESS MODEL

Recognising that low income households struggle to afford solar lighting, we plan to test the use of subsidies in Zambia, to see if lower retail prices for entry level lights can help overcome the finance barrier which prevent many from being able to own a solar light. Solar lights will be treated as a loss leader, after which we will then work to bring households up the ‘energy ladder’ so that they can access greater levels of solar light and power.

A trader at a market in Rufunsa, Zambia using a solar light so she can keep her business open at night. Photo: SolarAid / Jason J Mulikita.

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LIGHT A VILLAGE

500 Solar Home Systems (SHS) will be installed in the village of Ntchisi, Malawi, for our pilot Light a Village project. This is an innovation project which has been designed to make solar light and power affordable to every family in the village. We will be continually learning, adapting and increasing our understanding of what it takes to light up the every household, so that this can be replicated and scaled.

POWERING HEALTHCARE

Our healthcare pilots, in both Malawi and Zambia, will be in full swing next year. Following on from our Covid-19 response which helped bring emergency light and power to rural health facilities, we will continue our engagement with Ministries of Health and health partners as we implement and test models which provide light and power in rural health facilities. By combining the latest plug and play solar systems with quality, energy efficient medical appliances, we aim to develop a scalable and sustainable model which helps improve the health services available in basic rural health settings.

MAYI WALAS

The Mayi Walas programme launched in March 2021 and aims to recruit, train and support an initial 150 groups of female solar entrepreneurs, enabling them to launch solar light businesses. Following a 12 month incubation period, the Mayi Walas’ energy businesses will be invited to become members of FEBCO, where they will be able to access larger loans and ongoing support to sustainably scale their solar businesses. Our longer term goal is to expand this project across the whole of Malawi.

MICROFINANCING

COVID-19 delayed the launch of the new ‘Financing Energy Businesses Cooperative’ (FEBCO), an energy microfinance cooperative, designed to create a credit facility by pooling entrepreneurs’ own funds to leverage additional funds from external sources. In September 2021, FEBCO plans to issue its first loans, allowing entrepreneurs to access working capital finance at affordable rates, as well as additional business support tools, services and training. Together with the Global Distributors Collective (GDC), we will also release a guide to help other interested last mile distributors set up a SACCO (Savings and Credit Cooperative) to enable access to fair and fast capital.

Smart Mtonga., Outreach Director, using solar lights at the hospital pharmacy at Rufunsa Rural Health Clinic, Zambia. Photo: SolarAid / Peter Caton

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THE SUSTAINABLE DEVELOPMENT GOALS

Whilst SolarAid is actively working to accelerate the achievement of SDG 7, “access to affordable, reliable, and sustainable energy for all,” our work positively impacts 12 of the 17 Sustainable Development Goals (SDG's).

We are reaching the poorest, most remote communities to provide access to affordable, reliable, and sustainable solar light (SDG 7).

Access to renewable light saves a family, on average, 10% of their income that they would otherwise spend on costly alternatives. Our business model creates jobs and keeps income in the local economy. Families report spending thei r sav ings o ~~n~~ f ~~oo~~ d and input for their farms (SDG 1 & SDG 2).

Indoor air pollution now kill ~~s mo~~ re people globally than HI V and malaria combined. 54% of our customers report improved health after s wit ~~17 c~~ hing t ~~o 1~~ solar lights (SDG 3). On average, in hous eh ~~o~~ l ds with a 1 ~~so 6~~ lar light, children do a ~~2~~ n extra hou ~~r~~ of study each night. Many teachers have told ~~us a~~ b out the positive impact they see on attenda ~~nc~~ e, motivation, and results when children have access 1 t ~~o 5~~ l ight to study by (SDG 4). 3

Solar light ext e ~~n~~ d ~~s~~ bus 1 in ~~4 e~~ ss hours when darkness falls. We work to tr a ~~4 in~~ an d ~~su~~ pp ort agents to start their own solar business, and we are also ramping up our support and training of female entrepreneurs. Studies show that women are best placed to bring renewable energy to their communities (SDG 5 & 1 S ~~3 D~~ G 8). 5

Access to electricity promotes industry and innovation. We work to c ~~at~~ alyse solar markets (SDG 9). 1 2 ~~6~~ By serving famili ~~e~~ s w ~~h~~ o cannot afford grid-based power, we work to reduc e in equalities (SDG 10). 7 11 Each solar light averts o ver 1 tonne of 10 C O2 emissions, 8 m aking a s ig ~~n~~ i ~~f~~ i cant cumulative impact on ~~9~~ mitigating climate cha n ~~g~~ e ~~.~~ ~~A~~ dditionally, solar i ~~s~~ inherently more s ~~us~~ t ~~a~~ i nable than fossil fuels. We decouple economic growth from n at ural resource use - e ~~m~~ p owering communities with renewable technology (SDG 12 & SDG 13).

We work in collaboration with many other organisations to maximise our shared impact on the SDG's (SDG 17).

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THANKYOU

We wish to thank all of our supporters in 2020/2021, including our individual supporters, as well as the following:

Our founding partners continued to support SolarAid through donating a 5% of profits. This year, Solarcentury made the biggest ever donation to SolarAid to help bring light and power to those who need it most.

In addition, we continue to get the support of employees through fundraising and volunteering. Without their support, our work would simply not be possible.*

ICG made a considerable commitment to support SolarAid in the toughest of times, due to the Covid19 pandemic. ICG supported SolarAid to powering healthcare in Malawi.

With their support, we were able to light over 20 health clinics so they were better equipped to fight the pandemic for and deliver a higher level of modern health care to vulnerable populations.

NextEnergyFoundation CarbonIntelligence Piaget EQFoundation OxfordUniversityPress Pimco TheCalumetTrust ZimmermannPV-Stahlbau ImpactFund

*Solarcentury is now part of the organisation Statkraft.

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KEY POLICIES AND PROCESSES

Ourpeople

Remuneration,equalopportunitiesandstaffengagement

SolarAid aims to pay staff at a level close to the relevant market median. For each role we have pay grades based on market salary surveys. We monitor staff progress each year through our appraisal and objective setting processes and staff move up the pay grades as appropriate. The Chief Executive’s salary is set by the Board of Trustees based on the market median salaries of similar charities.

Our remuneration policy is based on an ambiti o n to recruit and retain skilled staff who are remunerated fairly but are primarily motivated to work with us beca use of ~~ou~~ r ~~m~~ i ~~s~~ s ion.

We aim for equitable remunera ti ~~on~~ f or all em p lo y ees re g ~~a~~ rdless of a ge, d isability, gender identity or gender 1 ~~7 1~~ expression, race, ethnicity, religion or belief, s ex , s exual o ~~r~~ ientation or any other equality characteristic. 16 2 We have an Equal Op ~~portu~~ nities Policy in place and the organisation is commi tte ~~d~~ to promoting equality of opportunity for all staff and jo b 15 ap plicants. 3

Volunteerhelpandgiftsinkind 14

The Trustees are very grateful to the volunteers who have helped SolarAid over this financial year. SolarAid’s volunteer net ~~w~~ o ~~rk~~ is hi ghly 13 skilled and has been able to assist SolarAid in 5 a numb e ~~r~~ of areas. SolarAid’s volunteers ma ~~ke a~~ n essential contribution to SolarAid, giving time to and providing ~~s~~ up port for the whole organisation. SolarAid works to ensure its strategy reflects the needs and views of volunteers and acknowledges their exp erien 12 ce and skills as fully as possible. SolarAi 6 d continues to actively recruit volunteer support and st rives to ensure that each volunteer is supported as fully a s po ssible during the time they give freely to ~~S~~ olarAid.

SolarAid’s legal partner, Co ving ton & Burl 1 ing 0 LLP, have provi de 8 d SolarAid with e xtensive and invaluable pro- 9 bono legal advice during t ~~h~~ e fina ncial year, for whic h S olarAid is deeply in d ~~e~~ bt ~~e~~ d.

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managingrisk

Managingprincipalrisksanduncertainties

The Board of Trustees is responsible for ensuring that major risks facing SolarAid are appropriately managed. The major risks identified are regularly reviewed and their potential impact assessed. Strategies and controls to manage each risk appropriately are in place, with some subject to continuing improvement. In those areas of our work where a degree of risk is inevitable, appropriate steps have been taken to mitigate that risk where possible. Updates to the register of key risks are reported to the Board and circulated to Trustees for their review.

Thetop3majorrisksreportedtotheBoardare:

Inability to generate sufficient income

To mitigate this risk we ensur ~~e~~ t ~~h~~ a t fundraising plans aim to pur sue d iverse funding streams. SolarAid secures funding for its activities ~~f~~ rom a wid e 17 ra nge of 1 s ources inc l ~~u~~ di ng Corporate partners, Trusts and Foundations, Governm e n ~~t~~ al bodies and the general public. We consider our funding to be without undue 1 ~~6 2~~ reliance on one partic ul ~~ar f~~ under or income stream. Fundraising ~~p~~ la ns are al s ~~o~~ mult i-year focused to ensure our sustainability. Targets and f ~~o~~ r ecasts are monitored on a monthly basi ~~s.~~ 1 ~~5 3~~

Adverse inflati ~~on an~~ d reduced spending power in country

Currency fluctu ation s in 1 Zam 4 bia and Malawi mean imported goods and ess 4 en tial ~~it~~ ems are being sold at a premium and there is a reduced spending power amongst our customers. Operational costs increase as a result of inflation. We are committed to developing innovative ways of distributing solar that makes it affordable for ~~e~~ ve ~~r~~ y one, 1 par 3 ticularly the poorest communities and those in n eed 5 .

Long term effects of COVID-19

The long term effects of C 1 OV 2 ID on the world economy is unknown and we wi 6 ll continue to remain flexible in our operational m odel an d review our outputs to ensure our focus remains on pro vidin g power to where it is needed most. We w ~~i~~ ll continue to support our programmes throug h raising fund s t o maintain operational ~~7~~ 11 activity.

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financialmanagement

During the financial year the Group’s income was £1,729,082 (2020: £2,546,516) and its resources expended were £1,738,925 (2020: £1,931,848).

Grants&DonationsReceived

A list of the income from grants and donations is included within notes 2 and 3. SolarAid would like to extend its gratitude to all funders for the support they have shown during this financial year.

TheFundsoftheGroupandoftheCharity

The Group ended the financial year with net outgoing resources of £9,843 (2020: net incoming resources of £614,668). After exchange rate gains on consolidation this resulted in total funds retained of £2,119,267 (2020: £2,009,114). These funds fall into two categories: restricted and unrestricted.

Unrestricted funds reduced du ~~r~~ i ~~n~~ g ~~t~~ he year b ~~y~~ £ 247,3 61 t ~~o~~ cl ~~o~~ se at £1 , ~~73~~ 7,767 (2020: increased by £812,459 to close at £1,985,128).

Restricted funds, whi ch ~~ar~~ e earmark 1 ed 6 f or particular programm es on which exp e nditure will be incurred in 2 future financial years, ~~stand~~ at £381,500 as at 31 March 2021 (2020: £23,986 ~~)~~ . At 31 M arch 2021 no restricted funds were in deficit.

ReservesPolicy

~~14 4~~ Reserves enable the ch ~~ar~~ i ~~ty~~ to make long-term commitments to projects b ~~y~~ protecting its work against financial fluctuations, although this must be balanced against a wish not to hold more reserves than are needed for these purp ~~o~~ s ~~e~~ s , in order to maximise the amount currently a ~~va~~ ilable ~~to~~ s upport SolarAid’s ~~13 5~~ charitable obj ~~e~~ ctive s.

The Trustees would norm ~~a~~ lly expect the charity to hold unrestricted reso ur ces sufficient to meet at least ~~12 6~~ three months un ~~re~~ s ~~tri~~ cte ~~d~~ group expenditure, estimated at £320,00 ~~0~~ bas ed o n current levels of expenditure. The ~~c~~ ha ~~r~~ ity has free reserves of £1,320,981 (2020: £1,569,291). Free r ese rves are stated net of fixed assets and investments and intercompany loan balances. The free reserves are higher than normal due to a large unrestricte d d onation rec ~~1 e 0~~ i ~~v~~ e d in the previo us ~~8~~ year. Spen d i ng plans are in place to invest these funds over the mu l ~~t~~ iple ~~y~~ ears. In ~~a~~ dd ition to this the ~~T~~ rustees ar ~~e~~ co ~~n~~ fident that the level of free reserves is sufficient to sustain any unc e rtainties in relation to COVID-19.

Restricted funds are not included in t h e Trustee s’ view of reserve needs, because these restricted funds are held by the charity for only as long as is necessary to deliver the relevant programmes.

Investmentpolicy

To date, monies have been held on deposit rather than in investments, reflecting the need for liquidity given the relative uncertainty around level and timing of income and expenditure.

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Financialperformanceofsubsidaries

In addition to the impact performance provided on page 10 of this report, the summary financial performance of active subsidiaries were as follows:

SolarAid SolarAid SunnyMoney
(Malawi) (Zambia) Global (UK)
Total income £ 447,188 £ 401,423 £ 1 0,255
Total expenditure £ 511,214 £ 403,560 £ 8,194
Net surplus or deficit for the year -£ 64,026 -£ 2,137 £ 2,061
Aggregate assets £ 354,955 £ 204,102 £ 51,943
Agregate liabilities -£ 476,879 -£ 317,215 -£ 6 12
Closing reserves position -£ 121,924 -£ 113,113 £ 51,331

SolarAid and it’s subsidiaries set detailed annua l budgets in advance each year. Overall the performance from subsidiaries in 2020/2021 wer ~~e~~ broadly in li ne with b ~~u~~ dget .

SolarAid Malawi currently has a closing reser ves 17 deficit 1 o f £121,924. ~~Th~~ ese losses have been supported as necessary by SolarAid ~~v~~ i ~~a~~ working cap ital loans. Despite the n ~~et~~ deficit SolarAid Malawi is considered a 16 ~~2~~ going concern due to S ~~o~~ l arAid’s pledge to continue to support an d fund its ~~wo~~ rk . 3 SolarAid Zambia has a closing reserves deficit of £113,113. Again, these losses have been supported as necessary by S ~~o~~ l ~~arA~~ id via working capital loans. Despite the net deficit SolarAi d ~~Z~~ a ~~m~~ bia is considered a going concern d ue t ~~o~~ Sol 1 arA 4 id’s pledge to continue to support and fund its work.

fundraisingandworkingcapital

SolarAid secu res fu ndin g 13 fo r its activities from a wide range of sources in clu 5 ding g ~~ov~~ e rnment and intergovernmental bodies, companies, foundations, a number of generous individuals and t he general public. The Trustees are extremely grateful for the generous support received from individuals and foundations – especially those who ha ve ~~1~~ 2 contributed towards our core costs by making ~~unr~~ estricted grants and donations. Details of gra nts and donations received during the year can be fou nd in notes 2 and 3 of the accounts. 7

SolarAid adheres to the g uideli ~~n~~ es of the fundraisin g 9 r egulat or 8 and the Tr ~~us~~ te ~~es~~ confirm there have been no failures in complying wit h t ~~h~~ e ~~f~~ undraising standards, nor have they receive d any complaints with regard to the Charity’s fundraising activity. It is Trustees’ responsibility to ensure that SunnyM ~~o~~ n ~~e~~ y Global and the in-country operations have access to sufficient working capital to deliver the Group’s overall mission objectives. A major working capital requirement relates to the purchase and stock-holding of solar lanterns which are imported from China.

During the course of the year SolarAid raised £525,960 (2020: £1,205,208 ) of programme related funding specifically to support market development through SunnyMoney. At the end of March 2021 SolarAid had invested £58,803 of share capital (2020: £58,805) and £240,176 in inter-company loans (2020: £171,273) in SunnyMoney. All loans were made from unrestricted funding and were used to support activities in line with the charity’s objectives.

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STRUCTURE GOVERNANCE AND MANAGEMENT

governingdocument

SolarAid is a charity registered with the Charity Commission under registration number 1115960 and a company limited by guarantee (registration number 3867741), incorporated on 28 October 1999. Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up. The total number of such guarantors at 31 March 2021 was three.

The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

The company’s name was changed from Solar Century Global Community Trust to SolarAid on 8 May 2006 by decision of the Board. SolarAid was registered as a charity on 30 August 2006.

charitableobjects

The charity’s objects are: To relieve ~~1~~ po 6 verty through facilitating the provision of solar energy to those in need. To advance the education of t ~~h~~ e public in matters relating to solar energy, climate change and the protection of the environme nt an d to carry out and disseminate the results of research into all aspects of 1 ~~5~~ energy generation, distribution, supply and use.

Trusteesandorganisationalstructure

The business of the charity is governed by a Board of Trustees, which seeks to ensure that all activities are compliant with UK law and fall within the charity’s objects. The Board’s work includes the setting of the strategic direction of the organisation and providing support to management. Day to day management of the charity is delegated to the CEO and Key Staff and the Board acts on advice and information from regular meetings with the CEO and Key Staff. Trustees are able, where appropriate, to take independent professional advic e at ~~n~~ o personal expense so that they are able to fulfil their role.

The Board will continue to evolve to ensure that it remains appropriate as the charity grows in size and complexity. 8

There is no fixed term of office for Trustees. In February 2021 Jeremy Leggett, SolarAid Founder, stood down as a Trustee of SolarAid. We are extremely grateful to Jeremy for his years of dedication and leadership. Whilst sad to see him leave we wish him all the best in his next endeavour. We also welcome three new Trustees who were appointed in February 2021: Jamal Gore

Ujunwa Ojemeni Simon Usher

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SolarAid has a wholly owned trading subsidiary, SunnyMoney Global, and controls two African based trading entities. All trading activity is maintained by the subsidiaries and fully consolidated accounts have been prepared for the year ending 31st March 2021.

MethodofappointmentofTrustees

Election or re-election of Trustees is in accordance with procedures set out in the charity’s Memorandum and Articles of Association, which is the organisation’s governing document. The Board is entitled to appoint new Trustees.

Trustees’inductionandtraining

New Trustees undergo an orientation to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business and strategic plans, development projects and recent financial performance of the charity. During this induction they meet key employees and the other Trustees.

Detailsofsignificantrestricti ~~o~~ nsi ~~n~~ thewaythechari ~~tyopera~~ tes

There are no significant restrict ~~i~~ on ~~s~~ in the way ~~th~~ e charit y operates o the ~~r~~ than those imposed by law. ~~17~~ 1

ChiefExecutive

John Keane, the Chief Execu tive, and Key Staff are responsible for the day to day operations of the charity, 15 ~~3~~ its programmes and fundraising activity within delegated authority from ~~th~~ e Trustees.

Publicbenefit

The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Charit y Commission’s general guidance on public benefit and that t he activities carried out by the cha rity du ring ~~1~~ the 3 year were all undertaken in order to further the ch 5 arity’s ai ~~m~~ s for the benefit of the charity’s beneficiaries. A detailed explanation is given under Charitable Objects abo ~~v~~ e.

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STATEMENT OF TRUSTEES' RESPONSIBILITY

The Trustees (who are also directors of SolarAid for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;

The Trustees are res po ~~ns~~ i ble for k eep 16 ing adequate accountin g records that a re sufficient to show and 2 explain the charitable ~~com~~ pany’s transactions, disclose with reasonable a c ~~cu~~ racy at any time the financial position of the group and en able 15 them to ensure that the financial state 3 m ents comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the ch ~~arity~~ and the group and hence for taking reasonable steps for the preve ntion and detection of fraud and oth ~~e~~ r i ~~r~~ regul 1 arit 4 ies. 4

DisclosureofInformatio ~~nt~~ oAuditors

~~13 5~~ Insofar as ea ch of t he t ~~rus~~ tees of the group at the date of approval of th i ~~s~~ repo rt i ~~s~~ aware there is no relevant audit information (information needed by the charitable group’s auditor in connection with preparing the audit report ) ~~of~~ which the charitable group’s auditor is unaw ar e. Each trustee has taken all of 1 ~~2 6~~ the steps that he/ ~~she sh~~ ou l ~~d~~ h ave taken as a trustee in order to make himse l f/her self aware of any relevant audit information and to establish that the charitable group’s auditor is aware of th at in formation.

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AUDITORS

A resolution will be proposed at the Annual General Meeting that our current auditors Crowe U.K. LLP be reappointed as auditors of the organisation for the ensuing year.

The Trustees are pleased to present the Trustees’ Report and Accounts for the Charity for the year ended 31 March 2021, which have been prepared in accordance with the Charity Statement of Recommended Practice – SORP 2015 and the Companies Act 2006.

This report has been prepared taking advantage of the exemptions available for small companies.

Approved by the Trustees and signed on its behalf by:

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Mirjana Skrba, Chair of Truste es, 15 1 7 December 2021

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TRUSTEES, KEY STAFF AND PROFESSIONAL ADVISORS

As at 17 December 2021

Directors / Trustees who served during the year and to the date of signing

Mirjana Skrba - Chair Jeremy Leggett (resigned February 2021) John Faulks Ujunwa Ojemeni (appointed February 2021) Simon Usher (appointed February 2021) Jamal Gore (appointed Februar y 20 ~~2~~ 1)

Key Staff

John Keane – Chief Executive Officer Brave Mhonie – Malaw i G ~~en~~ eral Man ager 16 2 Karla Kanyanga – Zam ~~bia O~~ p erations Manager Lorraine Hammond – Finance 1 Dire 5 ctor Jamie McCloskey – Development Director Sofia Ollvid - He ~~ad of~~ Communications Richard Turner - D ~~i~~ recto r 1 of 4 Fundraising (appointed September 2021)

Company Number

3867741 Charity Number 1115960

Registered Offic e

Unit 1, Gnome House, 7 Blackhor se L ane, London, E17 6DS 11

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Auditors

Crowe U.K. LLP 55 Ludgate Hill, London, EC4M 7JW

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Bankers

The Co-operative Bank PLC P.O. Box 101, 1 Balloon Street, Manchester, M60 4EP

Solicitors

Covington & Burling LLP 265 Strand, London, WC2R 1BH

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SOLARAID

Opinion

We have audited the financial statements of SolarAid (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31st March 2021 which comprise consolidated statement of financial activities, consolidated and charity only balance sheets, consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 3 6

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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RESPONSIBILITIES OF THE TRUSTEES

As explained more fully in the trustees’ responsibilities statement set out on page 29, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members and significant component audit teams. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

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We obtained an understanding of the legal and regulatory frameworks within which the group and charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the group’s and the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the group and charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Anti-fraud, bribery and corruption legislation, taxation legislation and employment legislation. We also considered compliance with local legislation for the group’s overseas operating segments.

Auditing standards limit the required aud it pro cedur ~~es~~ t ~~o~~ id entify non-compliance with these laws and regulations to enquiry of the Trustees and other management a nd inspection of regulatory and legal correspondence, if any.

We identified the gre ate ~~st~~ risk of m 1 ate 6 rial impact on the finan cia 2 l statemen ~~t~~ s fro m irregularities, including fraud, to be within th ~~e t~~ i ~~m~~ i ng of recognition of income, the timing of recogni ~~t~~ i o n of cost of sales and stock related to distribution of sola r 15 lig hts, and the override of controls by m an 3 agement. Our audit procedures to respond to these risks included enquiries of management and the Board of Trustees about their own identification a nd as se s ~~sm~~ e nt of the risks of irregularities, sample test ~~in~~ g o n the posting of journals, ~~14 4~~ reviewing accounting ~~es~~ tim ates for biases, reviewing regulatory cor r ~~es~~ pondence with the Charity Commission, detailed substantive testing of income, cost of sales and stock, reviewing the work of component auditors, an d r ~~e~~ a ding minutes of meetings of those charged with g overna ~~nc~~ e ~~.~~ 1 ~~3 5~~

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may no ~~t~~ have detected some material misstatements in ~~the~~ financial statements, even though we have p roperly planned and performed ~~12~~ 6 our audit in accord ~~ance~~ wi th ~~a~~ uditing standards. For example, the further remove d non -compliance with laws and regulations (ir regula rities) is from the events and transactions reflected in th e fi nancial statements, the less likely the inherently limited 1 pr 1 ocedures required by auditing st 7 an dards would identify it. In addition, as with any audit, there remai n ~~e~~ d a higher ri s ~~k o~~ f non-detectio n ~~o~~ f irregulariti es, as these may involve collusion, ~~10 8~~ forgery, intentional omi ~~ss~~ ion ~~s~~ , misrepr ~~ese~~ ntatio ns 9 , or th ~~e~~ override ~~o~~ f i ~~nt~~ ernal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

3 9

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Tim Redwood Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London 17 December 2021

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 4 0

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Donations
Investments
574,050
1 03
Income from
2
Unrestricted
Funds
£
Notes		 Donations
Investments
574,050
1 03
Income from
2
Unrestricted
Funds
£
Notes		 219,829
-
Restricted
Funds
£		 793,879
103
Total
2021
£		 613,691
281
1,205,208
706,329
21,007
Total
2020
£
Charitable activities:
Programme related grants and donations
Income from distributing solar lights in Africa
Other income
Total Income
Expenditure on
3
Raising funds
Charitable activities
Total funds brought forward
Reconciliation of funds
Total Expenditure
Net income/(expenditure)
Exchange rate gains/(losses)
Net movement in funds
4
4
4
14
14
Total funds carried forward		 -
408,714
426
983,293
300,707
1,049,943
1,350,650
( 367,357)
119,996
( 247,361)
1,985,128
1,737,767		 525,960
-
-
745,789
-
388,275
388,275
357,514
-
357,514
23,986
381,500		 525,960
4 08,714
426
1,729,082
300,707
1,438,218
1 ,738,925
( 9,843)
119,996
110,153
2,009,114
2,119,267
2,546,516
237,210
1,694,638
1 ,931,848
614,668
88,363
703,031
1,306,083
2,009,114

The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CONTINUING OPERATIONS

None of the group's activities were acquired or discontinued during the above financial periods.

TOTAL RECOGNISED GAINS AND LOSSES

The group has no recognised gains or losses other than the above movement in funds for the above financial periods

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 4 1

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021

Notes
FIXED ASSETS
7
8
9
Intangible assets
Tangible assets
Investments
CURRENT ASSETS
NET CURRENT ASSETS
11
10
14
14
Stock
Debtors
Cash at bank and in hand
CREDITORS: amounts falling due
within one year
Unrestricted funds:-
General funds
Restricted funds
NET ASSETS
FUNDS OF THE CHARITY		 Group
2021
£
-
43,616
43,616
280
64,535
64,815
380,874
202,639
1,777,555
2,361,068
285,417
2,075,651
2,119,267
2,009,114
306,159
1,109,402
780,376
2,195,937
251,638
1,944,299
1,985,128
23,986
2020
£
2,009,114
1,737,767
381,500
2,119,267		 Charity
2021
£
-
6,062
58,803
64,865
280
9,632
~~58,805~~
68,717
-
344,349
1,693,917
2,038,266
95,609
1,942,657
1,833,267
-
1,129,962
709,929
1,839,891
75,341
1,764,550
1,809,281
23,986
2020
£
1,833,267
1,626,022
381,500
2,007,522
2,007,522

Company Number 3867741 Charity Number 1115960

These accounts are prepared in accordance with the special provisions of Part VII of the Companies Act 2006 relating to small companies.

These accounts were approved and authorised for issue by the Board of Trustees on 17 December 2021 and were signed on its behalf by:

----- Start of picture text -----
............................................................................. Mirjana Skrba - Chair
............................................................................. John Faulks
----- End of picture text -----

.

4 2

STATEMENT OF CASH FLOWS AND CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash provided by operating activities
Ch fl f iti tiiti
15
Notes
2021
£
Group
2020
£
992,373
268,115		 Cash provided by operating activities
Ch fl f iti tiiti
15
Notes
2021
£
Group
2020
£
992,373
268,115
Cash used in financing activities
as ows rom nvesng acves
Cash provided by (used in) investing activities
Cash flows from financing activities
Cash and cash equivalents at the end of the year
Increase in cash and cash equivalents in the year
Repayment of borrowing
Interest income
Purchase of tangible fixed assets
Proceeds from the sale of fixed assets
Cash and cash equivalents at the beginning of the year		 -
-
103
( 9,097)
13,800
4,806
780,376
1,777,555
997,179
-
-
281
( 70,534)
7,116
( 63,138)
575,399
780,376
204,978

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 4 3

NOTES TO THE CONSOLIDATED ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

SolarAid is an incorporated Charity (Charity registration number: 1115960) registered in England and Wales. The address of the registered office is Unit 1, Gnome House, 7 Blackhorse Lane, London, E17 6DS.

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

1.1 Basis of preparation of accounts

The financial statements have been prepared in accordance with the Companies Act 2006 and follow the recommendations of the Accounting and Reporting by Charities: Statement of Recommended Practice 2015 applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

SolarAid meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

To comply with overseas local legislation, SolarAid has established a number of overseas legal entities in the countries in which it operates. These entities are fully controlled by SolarAid and their accounts are consolidated within the accounts of SolarAid.

Going Concern

We have set out in the Trustees’ report a review of financial performance and the charity’s reserves position. We have adequate financial resources and are well placed to manage the normal business risks as well as those created by the COVID pandemic which we have highlighted in other areas of our report.

We have a reasonable expectation that we have adequate resources to continue to operate for the foreseeable future. We believe that there are no material uncertainties that call into doubt the charity’s ability to continue. The financial statements have therefore been prepared on the basis that the charity is a going concern.

1.2 Income

Donations, gifts, legacies and grants that provide core funding or are of a general nature are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Such income is only deferred when:

The donor specifies that the grant or donation must only be used in future accounting periods; or The donor has imposed conditions which must be met before the charity has unconditional entitlement.

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 4 4

NOTES TO THE CONSOLIDATED ACCOUNTS

Income received from charitable activities includes sales income, income received under contract and grant funding subject to specific performance conditions relating to charitable activities. Grant and contract income is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Income from sales of goods is recognised when the sale occurs.

Income is deferred when income from performance related grants or contracts are received in advance of the performances or event to which they relate.

Grants received as a contribution towards the purchase of capital equipment are recognised in the Statement of Financial Activities (SOFA) in the period in which they are received.

Donated goods and services are recognised in the financial statements, as both income and expenditure, at a reasonable estimate of their value in the period in which they are donated.

1.3 Volunteers and donated services and facilities

The value of services provided by volunteers is not incorporated into these financial statements. Further details of the contribution made by volunteers can be found in the Trustees’ Annual Report.

Where services are provided to the charity as a donation that would normally be purchased from suppliers, this contribution is included in the financial statements at an estimate based on the value of the contribution to the charity.

1.4 Interest receivable and investment income

Interest and investment income is credited to the SOFA when it is receivable.

1.5 Expenditure

Expenditure is recognised in the period incurred on an accrual basis. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arises that results in the payment being unavoidable.

Costs of raising funds are those costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities include expenditure associated with the main objectives of the charity and include both the direct costs and support costs relating to these activities.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of the resources.

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 4 5

NOTES TO THE CONSOLIDATED ACCOUNTS

1.6 Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

1.7 Taxation

The Charity

The Charity is a registered charity in England and Wales and, therefore, is not liable for Income Tax or Corporation Tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. Tax recovered from voluntary income received under gift aid is recognised when the related income is receivable and is allocated to the income category to which the income relates.

The Subsidiary Entities

The subsidiary entities are fully liable to relevant corporate, income and capital taxes in their respective territories on profits derived from trading activities:

Subsidiary Place of residence for tax purposes SunnyMoney Kenya Ltd Kenya SolarAid Kenya Kenya SolarAid Malawi Ltd Malawi SolarAid Malawi Malawi SolarAid Tanzania Ltd Tanzania SunnyMoney Tanzania Ltd Tanzania SunnyMoney Global Ltd UK SolarAid Zambia Ltd Zambia Previously known as D Light Design East Africa Ltd

1.8 Tangible fixed assets and depreciation

Tangible and Intangible fixed assets are stated at historic cost less accumulated depreciation or amortisation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Depreciation and amortisation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The amortisation and depreciation rates and bases are as follows:

Goodwill (arising on consolidation) 10% Straight Line Furniture, Fixtures & Fittings 12.5% Reducing Balance Computer Equipment 30% / 37.5% Reducing Balance Motor Vehicles 25% / 37.5% Reducing Balance Website development 25% Straight Line

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 4 6

NOTES TO THE CONSOLIDATED ACCOUNTS

1.9 fixed assets investments

Fixed assets investments representing investments in subsidiaries are stated at historic cost.

1.10 stock

Stock is shown at the lower of cost and net realisable value. Provision is made for obsolete, slow moving or defective stock where appropriate.

1.11 fund accounting

Unrestricted funds are available for use at the discretion of the Trustees and in furtherance of the general objectives of the charity. Restricted funds must be used for specified purposes as laid down by the donor.

1.12 foreign currencies

Transactions in foreign currencies are recognised at the prevailing rate at the beginning of the month in which the transaction arose. Monetary assets and liabilities are translated into sterling at the exchange rate on the balance sheet date. All exchange differences are recognised through the SOFA.

1.13 Financial instruments

The Charity has taken advantage of the exemptions in FRS102 from the requirement to present certain disclosures about the charity’s financial instruments. The Group has financial assets and financial liabilities of a kind that qualify as basic. These are initially recognised at transaction value and subsequently measured at their settlement value. Financial assets that are debt instruments measured at amortised cost include trade debtors and other debtors. Financial liabilities measured at amortised cost include trade creditors, other creditors and current loans.

2. donations

Donations
Pro bono legal advice		 566,126
7,924
574,050
Unrestricted
Funds
£		 219,829
-
219,829
Restricted
Funds
£		 785,955
7,924
793,879
Total
2021
£		 581,944
31,747
613,691
Total
2020
£

The charity is indebted to Covington & Burling LLP for providing legal advice as pro bono services. The value placed on these contributions by the donor is £7,924 (2020: £31,747 ). The income equivalent is recognised within incoming resources as a donation, and a corresponding expense is included within legal costs.

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 4 7

NOTES TO THE CONSOLIDATED ACCOUNTS

3. INCOME FROM CHARITABLE ACTIVITIES

Grants receivable and other charitable income is shown for the year ending 31 March 2021:

SolarCentury
ICG
FCDO (formerly DFID)
Individual Major Donors
Swedish Postcode Lottery
Unrestricted
Funds
£
-
-
-
-
-		 SolarCentury
ICG
FCDO (formerly DFID)
Individual Major Donors
Swedish Postcode Lottery
Unrestricted
Funds
£
-
-
-
-
-		 -
76,915
57,208
162,450
87,321
Restricted
Funds
£		 -
76,915
57,208
162,450
87,321
Total
2021
£		 921,514
-
-
45,508
-
Total
2020
£

Allan & Nesta Ferguson Charitable Trust
CLASP - Global LEAP
Signify Foundation
GDC
Other Country Specific		 -
-
-
-
-
-		 -
76,026
39,237
21,239
5,564
525,960		 -
76,026
39,237
21,239
5,564
525,960		 20,000
72,442
95,943
-
49,802
1 ,205,208

4. RESOURCES EXPENDED

RESOURCES EXPENDED
Solar light
Basis of distribution
allocation programmes Fundraising 2021 2020
£ £ £ £
Costs directly allocated to activities:
Staff costs Direct 484,912 203,966 688,878 619,964
Travel & subsistence Direct 7,305 - 7,305 22,628
Communications Direct 33,619 33,619 67,238 41,294
Other direct project costs Direct 573,366 17,351 590,717 836,108
Consultants Direct 50,490 25,020 75,510 66,362
Insurance Direct 1 ,667 - 1,667 2,022
Loan interest Direct - - - 1,474
Bank charges and foreign
exchange differences Direct 206,093 - 206,093 168,310
Depreciation and the loss
sale of fixed assets Direct 12,647 3,569 16,216 11,033
Amortisation of intangibles Direct 280 - 280 -
Audit
Legal & professional costs
Direct
Direct
Governance support costs allocated to activities:		 24,874
8,629		 -
-		 24,874
8,629		 25,312
39,997
Support costs allocated to activities:
Staff training Transactions 14,210 - 14,210 16,783
Premises Staff Time 12,457 11,218 23,675 32,448
General office expenses Staff time 2,724 2,454 5,178 6,347
Recruitment Transactions - 390 390 9,055
Travel & subsistence Transactions 1,481 - 1,481 23,914
Communications Staff time 123 1 11 234 100
I.T. support & maintenance Staff time 3,216 2,896 6,112 5,246
Office equipment Staff time 125 112 237 3,450
1,438,218 300,707 1,738,925 1,931,847

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 4 8

NOTES TO THE CONSOLIDATED ACCOUNTS

5. STAFF COSTS AND NUMBERS

The average headcount total is:

Management and International Programmes staff
Fundraising staff
Staff costs for the charity and group were as follows		 43
4
47
2021
2021
£		 40
3
2020
43
2020
£
£90,000 - £100,000
1
Salaries 630,270
National Insurance 41,871
UK Pension 16,737
688,878
The number of employees whose emoluments exceeded £60,000 in the year was as follows:
551,136
39,965
28,862
619,964
1
2021
2020
(restated)		 551,136
39,965
28,862
619,964

The key management personnel of the group are the members of the Senior Management Team (SMT). The total employee benefits for the SMT was £251,912 (2020: £248,135) inclusive of employer's pension and national insurance costs.

No Director of the Charity or the subsidiary entities received any remuneration in the year for services to those companies.

6. TAXATION

SolarAid is a registered charity and is exempt from tax on income and gains to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

The subsidiary entities are fully liable to relevant corporate, income and capital taxes in their respective territories on profits derived from trading activities. No corporate taxes were incurred in the year to 31 March 2021.

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 4 9

NOTES TO THE CONSOLIDATED ACCOUNTS

7. INTANGIBLE ASSETS

7. INTANGIBLE ASSETS
At 1st April 2020
Charge in the Year
Write off in the Year
At 31st March 2021
At 1st April 2020
Additions in the Year
Write off in the Year
At 31st March 2021
Amortisation
Intangible Asset - Value
Net Book Value at 31st March 2021		 3,511
-
( 3,511)
3,791
-
( 3,791)
3,791
-
( 3,791)
3,511
-
( 3,511)
Crypto-
currency
2021
Total
£
-
-		 3,791
-
-
3,791
3 ,511
-
0
2020
Total
£
-
-
-
-		 3 ,511
280

In January 2018 Solarcoins, a cryptocurrency that are issued for free to those who generated 1 MWh of solar electricity, were donated to SolarAid. The Solarcoins are unlikely to recover their value so were written off in the year.

8. TAngible assets

At 1st April 2020
Additions in the Year
Disposals In The Year
At 31st March 2021
At 1st April 2020
Charge in the Year
Disposals In The Year
At 31st March 2021
4,121
1,020
( 1,885)
3,256
6,800
9,021
4,401
( 3,366)
10,056
21,983
4,696
( 3,932)
22,747
8,970
5,329
( 3,295)
11,004
11,743
73,259
-
( 25,318)
47,941
26,638
9,867
( 13,637)
22,868
25,073
The Group
Cost
Depreciation
Net Book Value at 31st March 2021
Furniture,
Fixtures
& Fittings
£
Computer
Equipment
£
Motor
Vehicles
£		 104,263
9,097
( 32,616)
2021
Total
£
80,744
39,729
16,216
( 18,817)
37,128
43,616

The fixed assets represent the value of assets incorporated into these accounts from SolarAid Malawi, SolarAid Zambia and SolarAid (the Charity).

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 5 0

NOTES TO THE CONSOLIDATED ACCOUNTS

8. TANGIBLE ASSETS (continued)

At 1st April 2020
Additions In The Year
Disposals In The Year
At 31st March 2021
344
-
-
344
11,841
-
-
11,841
Diti
The Charity (included above)
Cost
Furniture,
Fixtures
& Fittings
£
Computer
Equipment
£		 At 1st April 2020
Additions In The Year
Disposals In The Year
At 31st March 2021
344
-
-
344
11,841
-
-
11,841
Diti
The Charity (included above)
Cost
Furniture,
Fixtures
& Fittings
£
Computer
Equipment
£		 At 1st April 2020
Additions In The Year
Disposals In The Year
At 31st March 2021
344
-
-
344
11,841
-
-
11,841
Diti
The Charity (included above)
Cost
Furniture,
Fixtures
& Fittings
£
Computer
Equipment
£		 -
-
-
-
Motor
Vehicles
£		 12,185
-
-
2021
Total
£
12,185
At 1st April 2020
Charge in the Year
Disposals In The Year
At 31st March 2021
eprecaon
Net Book Value at 31st March 2021		 173
21
-
194
150		 2,381
3,548
-
5,929
5,912		 -
-
-
-
-		 2,554
3,569
-
6,123
6,062

9. INVESTMENTs

The Charity has unlisted investments with a historical cost as follows:

Charity Charity
SunnyMoney Global Ltd - 100% investment
SunnyMoney Kenya Ltd - 1% investment
SolarAid Uganda Ltd - 1% investment
Cost		 58,795
8
-
58,803

2021
Total
£		 58,795
8
2
58,805

2020
Total
£

A capitalisation of SunnyMoney Global Ltd took place during 2012/2013 resulting in an addition of 58,793 £1 shares to the initial holding of £2.

SunnyMoney Global Ltd has been consolidated into these accounts. SunnyMoney Kenya Ltd has also been consolidated into these accounts on the basis that the remaining 99% of the shares of each are held by the aforementioned SunnyMoney Global Ltd.

SolarAid Uganda Ltd was brought out by their management and no longer form part of the group. The shares were transferred at nil cost.

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 5 1

NOTES TO THE CONSOLIDATED ACCOUNTS

10. debtors

Prepayments and accrued income
Amounts due from Subsidiaries
Amounts due from donors
Overseas taxation rebates
Trade debtors		 126,134
-
-
33,322
43,183
202,639
968,781
-
-
-
140,621
1,109,402
2021
£
Group
2020
£		 126,134
-
-
33,322
43,183
202,639
968,781
-
-
-
140,621
1,109,402
2021
£
Group
2020
£		 104,173
240,176
-
-
-
344,349
958,690
171,272
-
-
-
1,129,962
Charity
2021 2020
£ £

11. Creditors: amounts falling due within one year

Creditors and accruals
Loans
Amounts owed to Subsidiaries
UK taxation & social security costs
Overseas taxation & social security costs		 180,207
50,008
-
10,292
44,910
285,417
2021
£
Group
 173,760
14,832
-
11,433
51,614
251,638
2020
£		 35,317
50,000
-
10,292
-
95,609
Charity
2021
£

The loans are unsecured and repayable within 12 months of the year end.

12. Company limited by guarantee

The UK Charitable company is limited by guarantee and does not have share capital.

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 5 2

NOTES TO THE CONSOLIDATED ACCOUNTS

13. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

For the year ending 31 March 2021

For the year ending 31 March 2021
Intangible assets
Tangible assets
Current assets

-
43,616
1 ,979,568

Unrestricted
Funds
£		 -
-
381,500
Restricted
Funds
£		 -
43,616
2,361,068

Total
2021
£
Current liabilities
Long-term liabilities
Intangible assets
Tangible assets
Current assets
Current liabilities
Long-term liabilities
280
64,535
2 ,171,951
( 251,638)
-
1,985,128
( 285,417)
-
1,737,767
For the year ending 31 March 2020
Unrestricted
Funds
£		 -
-
381,500
-
-
23,986
-
-
23,986
280
64,535
2,195,937
( 251,638)
-
2,009,114
( 285,417)
-
2,119,267
Restricted
Funds
£
Total
2020
£		 ( 285,417)
-
2,119,267

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 5 3

NOTES TO THE CONSOLIDATED ACCOUNTS

14. MOVEMENT IN FUNDS

Restricted funds:
Agent Programme Malawi
Agent Programme Zambia
Agent Programmes
Covid-19 response - Powering Health
E-waste programme Zambia

For the year ending 31 March 2021		 -
23,986
-
-
-
-
Balance
at 31.03.20
£		 61,440
39,237
48,765
161,803
76,026
75000
Income
£		 21,439
1,071
1,316
161,802
76,026
-
Expenditure
£		 21,439
1,071
1,316
161,802
76,026
-
Expenditure
£		 Exchange
Gains
£
-
-
-
-
-
-		 Exchange
Gains
£
-
-
-
-
-
-		 1,985,128
1,737,767
40,001
62,152
47,449
1
-
75,000
-
58,027
98,870
-
-
381,500
-
-
-
23,986
23,986
2,119,267
2,009,114
Balance
at 31.03.20
£
Balance
at 31.03.21
£
Total funds
Total funds
Unrestricted funds:
General Funds
Unrestricted funds:
General Funds
Light A Village programme Malawi
Light Library programme Malawi
Powering Health programme
Powering Health programme Malawi
Powering Health programme Zambia
Solar Radios Malawi
Restricted funds:
DFID - multi-country Programme Work
Malawi Programme Work
Multi-country Programme Development Work
Zambia Programme Work
For the year ending 31 March 2020
-
-
-
-
-		 983,293
2,262,822
,
3,150
58,027
164,236
57,208
897
745,789
2,546,516
-
66,765
46,648
170,281
283,694
1,729,082
Income
£
3,150
-
65,366
57,208
897
-
-
-
-
-
23,986 388,275 -
1,985,128
1,172,669
2,009,114
33,396
40,962
30,711
28,345
133,414
1,306,083
Balance at
31.03.19
£

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 5 4

NOTES TO THE CONSOLIDATED ACCOUNTS

15. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

PERATING ACTIVITIES
Net movement in funds
Add back depreciation charge		 110,153
16,216
703,031
11,033
2021
£
Group
2020
£

Add back amortisation charge Deduct
interest income shown in
investing activities
Decrease / (increase) in stock Decrease
/ (increase) in debtors Increase /
(decrease) in creditors
Net cash provided by operating activities		 280
( 103)
( 74,715)
906,763
33,779
992,373		 -
( 281)
( 87,613)
( 417,975)
59,920
268,115

16. Financial commitments

As at 31st March 2021, the charity did not have any annual commitments under non-cancellable leases or other financial commitments (2020: £0).

17. Related party transactions and trustee expenses

For the whole of the year, the charity was under the control of the Trustees, who are also the Directors of the company for the purposes of Company Law, as shown on page 31. During the year £0 (2020: £0) was spent to cover various expenses relating to Trustees. The Trustees are not remunerated for the positions they hold.

Intercompany Balances with SolarAid

Opening
balance at 1
April 2020
(net of
provisions)
£		 Grants
made by
SolarAid
£		 Working
capital
support
made by
SolarAid
£		 Income
received in
SolarAid
on behalf
of sub.
£		 Closing balance at 31st
March 2021 (net of
provisions)
£
SunnyMoney Global ( 19,789) - 8,644 ( 2,841) ( 13,986)
SolarAid Malawi 124,874 ( 185,449) 269,458 ( 16,492) 192,391
SolarAid Zambia 98,340 ( 181,273) 261,939 ( 85,082) 93,924
SolarAid Tanzania ( 32,153) - - - ( 32,153)
171,272 ( 366,722) 540,041 ( 104,415) 240,176

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 5 5

NOTES TO THE CONSOLIDATED ACCOUNTS

18. Overseas group entities

To comply with local overseas legislation, SolarAid has established a number of legal entities that are fully controlled by SolarAid and their accounts are therefore consolidated within the accounts of SolarAid. These organisations are listed in Note 19 below and a summary of the financial performance and position is included on Page 30 of the Annual Report.

19. CONSOLIDATION

The Charity’s subsidiary companies listed below have been consolidated into the SolarAid accounts in accordance with the Charities’ SORP 2015.

The active subsidiaries are:

SunnyMoney Global UK Ltd (Registered in England and Wales, CRN 7788918 ) - 100% owned by SolarAid SolarAid Zambia Ltd (Company Limited by Guarantee, registered in Zambia, CRN 75087) - ownership through 100% control by SolarAid

SolarAid Malawi (Unincorporated NGO, registered in Malawi, NGO C391/2008) - ownership through 100% control by SolarAid

The dormant subsidiaries are:

SolarAid Malawi Ltd (Company registered in Malawi, CRN 9144) - 100% owned by SolarAid Malawi

SunnyMoney Kenya Ltd (Company registered in Kenya, CPR/2012/70931) - 99% owned by SunnyMoney Global UK Ltd & 1% owned by SolarAid

SunnyMoney Tanzania Ltd (Company registered in Tanzania, CRN 67879) - 100% owned by SunnyMoney Global UK Ltd

SolarAid Tanzania Ltd (Company Limited by Guarantee, CRN 67958) - ownership through control SolarAid Kenya (Unincorporated NGO) - ownership through control

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 5 6

NOTES TO THE CONSOLIDATED ACCOUNTS CONTINUED

20. PRIOR YEAR CHARITY STATEMENT OF FINANCIAL ACTIVITIES

Income from
Donations
Investments
Chitbl tiiti		 Unrestricted
Funds
£
613,691
281		 Unrestricted
Funds
£
613,691
281		 Restricted
Funds
£
-
-		 Total
2020
£
613,691
281
Total Income
Expenditure on
Total funds carried forward
Total Expenditure
Net income/(expenditure)
Exchange rate gains & losses
Net movement in funds
Raising funds
Charitable activities
Total funds brought forward
arae acves:
Programme related grants and donations
Income from distributing solar lights in Africa
Other income
Reconciliation of funds		 921,514
706,329
21,007
2,262,822
237,210
1 ,301,516		 283,694
-
-
283,694
-
393,122
393,122
( 109,428)
-
(109,428)
133,414
23,986		 1 ,205,208
706,329
21,007
2 ,546,516
237,210
1 ,694,638
1,538,726 1,931,848
724,096
88,363		 614,668
8 8,363
703,031
812,459
1 ,172,669 1,306,083
1,985,128 2,009,114

A N N U A L R E P O R T 2 0 2 0 / 2 0 2 1 5 7

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Registered Charity Number: 1115960