Written by Hafid Boutaleb

Boosting Morocco’s renewable energy sector by harnessing the spirit of enterprise of the country’s private businesses — that is the ambition behind Solar Rooftop 500, a pioneering project launched in Morocco with the full backing of public authorities and high interest from the private sector. SR500's ambition is to help Moroccan private companies bypass the financial barriers and move beyond reliance on fossil-heavy grid electricity by investing in on-site renewable solutions such as solar rooftops.

"With SR500, a clear and powerful message is sent to industrial and tertiary-sector players: now is the time to embrace solar photovoltaic energy" says Kamal Berrada COO at Valoris Capital, a private company that has already benefitted from the programme.

"SR500 is a concrete joint mitigation action, measurable and sustainable" says Bouzekri Razi, Secretary General at the Ministry of Energy Transition and Sustainable Development, before recalling that "it is the first authorised programme under Article 6.2 of the Paris Agreement on cooperative approaches, consistent with the Kingdom’s climate commitments". Rachid Tahiri, Director of Climate Change and Biodiversity at the Ministry, added: "As a concrete and measurable action, the SR500 project constitutes a model and an operational instrument that responds to the Kingdom’s climate objectives."

By directly contributing to Morocco’s updated conditional Nationally Determined Contribution (NDC) — which aims to increase the share of renewable energy to 52% of installed capacity by 2035 and reduce greenhouse gas emissions by 53% — SR500 combines financial innovation, bilateral cooperation, and private sector inclusion.

Designed as a programme for commercial and industrial sector actors, it is funded by the Swiss KliK Foundation, and implemented by Africa Climate Solutions, with the support of the Ministry of Energy Transition and Sustainable Development. Its ambition is clear: to equip the rooftops of eligible Moroccan companies with photovoltaic panels by combining local private investment with carbon revenues sourced from a country that has entered into a cooperative approach under Article 6.2 of the Paris Agreement with Morocco — in this case, the Swiss Confederation. An initiative that “contributes directly to the decarbonisation of the Moroccan economy and to Switzerland’s carbon offsetting objectives by 2030” as recalled by His Excellency the Swiss Ambassador to Morocco, Valentin Zellweger, during the inaugural event of the SR500 programme held in Morocco’s economic capital, Casablanca.

SR500 operates indeed within the framework of Cooperative Market Approaches, a mechanism established under Article 6.2 of the Paris Agreement that allows for the international transfer of greenhouse gas emission reductions between countries. According to Mohammed Alaoui, managing director of Africa Climate Solutions, the coordinating managing entity responsible for implementing the programme, “this is the authorised ITMO (Internationally Transferred Mitigation Outcomes) programme with currently one of the largest volumes in the world,” before adding, “more than a thousand companies of all sizes are expected to rally Solar Rooftop 500”.

An important milestone for Morocco’s private sector, beyond any doubt, particularly from the perspective of the renewable energy ecosystem, for which, as Zinelabiddine Jabiri, Business Development Manager at Sofa Maroc notes, “such a project represents a significant competitive advantage for our solar offerings.” Undoubtedly, the Moroccan renewables ecosystem sees Solar Rooftop 500 as an opportunity to boost the sector, especially since SR500 is structured as an integrated support programme, providing Moroccan companies with full flexibility in sourcing equipment and services, making their activities financially viable.

Indeed, the project’s main objective is to generate nearly 500 MW of installed rooftop capacity and achieve an estimated cumulative reduction of 2.3 million tons of CO₂. SR500 is expected to mobilise around USD 500 million in rooftop solar investments in Morocco “With a clear goal: to make rooftop solar more affordable and to trigger large-scale private investment” insists Fatim Zahra Khalifa, CEO of the cluster ENR in Morocco. This 500 MW target represents 20% of the 2,500 MW self-consumption commitment outlined in the conditional component of Morocco’s third Nationally Determined Contribution.

In concrete terms, an average of 15% to 25% of the investment costs are advanced by the KliK Foundation, the carbon offset association of Swiss fuel importers, whose resources are raised on the basis of a legal mandate under the Swiss CO₂ Act, authorising the collection of a levy of a few Swiss centimes per liter of fuel consumed. "The carbon valorisation mechanism under SR500 strengthened the project’s profitability and was a decisive factor in our decision-making process." noted Abdelhak Korchi, CFO of Logismar, a company benefiting from the programme.

A similar assessment is shared by Khalid Aouas, General Manager of Gouzwine Industrial Bakery: "We are not a large industrial company, but SR500 has enabled us to access solar energy under conditions suited to our size. The subsidy currently being processed strengthens the viability of our investment." In other words, SR500 cancels all profitability and viability issues, and speeds the decision toward more renewables.

Therefore, the KliK Foundation covers up to 60% of the total estimated value of avoided emissions credited up to December 31, 2030. "The remaining 40% is paid after a yearly third-party verification confirms the actual performance of solar panel, covering the period from the launch of the investment through to the programme’s completion in 2030" clarifies Zaineb Kouzibri, SR500 programme manager at Africa Climate Solutions before adding "Consequently, the earlier companies invest in the SR500 programme, the greater the revenue generated from carbon credits."

The programme sets clear and simple eligibility rules: it targets Moroccan private companies focused on the local market and operating in the industrial and commercial sectors. It supports new rooftop or solar canopy photovoltaic installations (excluding extensions of existing projects on the same site), with a maximum capacity of 3 MWp per project. All electricity produced must be intended for the company’s own consumption, including any battery storage. The investment has to be carried out by the company and can be financed through various methods, including bank loans, leasing, equity, or third-party investors.

In the meantime, none of these projects must be related to any other subsidies, financial aid, or profitable grid export. "This mechanism is therefore more an incentive seeking to remove financial barriers that prevent private companies with technical potential from mobilising the necessary upfront investment, enabling an increase in the overall profitability", concludes Zaineb Kouzibri.