Community green waqf: advancing Islamic social finance for renewable energy and agricultural transformation in Ghana

Purpose This paper proposes the Community Green Waqf (CGW) as an innovative Islamic social finance framework for financing renewable energy (RE) deployment and agricultural modernization in rural Ghana. It investigates how waqf-based instruments and Islamic green finance mechanisms can be strategically mobilized to lower financing costs, enhance financial inclusion, and promote inclusive green growth, while contributing to the achievement of a just and equitable energy transition. Design/methodology/approach This study adopts a conceptual–analytical methodological approach that integrates systematic synthesis of secondary data and extant literature with techno-economic and financial modeling to evaluate the feasibility and applicability of the CGW model. The methodology combines supply-side and demand-side analytical perspectives on RE adoption and financing, operationalized through a solar-powered irrigation case application within Ghana’s agricultural sector. This integrated framework enables an assessment of technical performance, economic viability, and institutional suitability of the CGW model as a sustainable financing mechanism for decentralized clean energy infrastructure. Findings The CGW modelling provides a structured mechanism through which community participation, impact investment and Islamic social finance can be integrated to achieve reduction of the levelized cost of electricity (LCOE), lower the levelized cost of water, improve RE investment performance (NPV, IRR and payback period) and mitigating CO2 emissions, thereby reinforcing Ghana’s climate mitigation commitments. Specifically, the baseline LCOE of USD 0.0900/kWh (GH¢1.1696) is reduced to USD 0.0573/kWh (GH¢0.7455) under the CGW_Finance scenario and further to USD 0.0402/kWh (GH¢0.5223) under the CGW_Proc_Perf scenario, representing approximate cost reductions of 36% and 55%, respectively. Finally, each kilowatt of installed photovoltaic capacity is estimated to avoid approximately 1.28 tonnes of CO2 annually relative to diesel-powered irrigation and about 0.45 tonnes relative to the national grid mix. Research limitations/implications The framework remains conceptual and requires empirical validation through pilot projects. Its success depends on enabling Islamic finance regulations, RE incentives and strong governance systems in rural communities. Practical implications The CGW provides a financing tool for policymakers, regulators and development partners to scale RE in agriculture, emphasizing fiscal incentives, regulatory alignment, and public–private partnerships to de-risk investment. Social implications By aligning Islamic social finance with RE, the model enhances energy access, strengthens agricultural productivity, creates rural employment and contributes to poverty reduction while advancing environmental sustainability. Originality/value This paper extends Islamic finance and RE literature by proposing CGW as a novel financing mechanism linking Islamic social funds with climate-smart agriculture, advancing inclusive green growth in Sub-Saharan Africa.