The Ndawala project launch on Wednesday in Ntcheu saw 110 houses connected to the grid, a move minister of Energy Bright Msaka said would spur development.
He said the government targeted low income people for the low cost wiring whose loan is paid without interest.
Chairperson of Escom Jean Namathanga said low income people are asked to pay an initial payment of K5000.
After the connection after the payment of the deposit the rest of the loan is paid through the purchase of electricity units.
She said 20 per cent of the prepaid electricity units goes directly to the repayment of the loan.
Those seeking electricity in this project do not need to go to Escom offices but the power utility has staff who identify houses in need of electricity in Ndawala project.
Miniser Msaka said this project will not compromise the quality of Escom services saying black outs will not increase because of increased customers through the Ndawala project.