Pay-as-you-go solar find its share of success in Africa. Rural communities are getting their first chance at power. This has been one of the most valuable technology of the recent years. This technology sells family a small PV kit, which is then topped via mobile devices.
Only one in six rural inhabitants have access to electricity in the sub-Saharan Africa. For people living off the grid, kerosene lamps are the basic source of electricity. It is an expensive technology and is unsafe as kerosene is flammable as well as poisonous when inhaled. Reports suggests that breathing kerosene fumes is equal to smoking two packs of cigarette. The poorest people in the world are paying a hefty amount.
The PAYG is one of the latest business ideas incorporated in Africa to bring solar power and other services to people who have no access to it. PEG says that it is the largest PAYG solar provider in Ghana with an extensive customer base. The company’s ideal customer earns approximately $1 – $6 per day and most of them are without bank accounts.
Pay As You Solar Plan Details
PEG offers customers a solar product on a low-cost 12-month payment plan, with an initial $35 deposit, followed by daily or weekly repayments, through mobile money. After completing the payment plan, customers own the solar power system, with multiple lights, a mobile charging facility, a lantern and a radio. PEG’s exceptional approach is a tribute both to the company’s determination and customer’s belief and service in the model.
PEG permits it technology from M-Kopa, the company to develop PAYG services in 2010 selling solar power products that are paid off via mobile payments. M-Kopa sells products in Tanzania, Uganda and Kenya and has raised more than $40 million in 5 pounds.
The rapidly increasing demand for electricity has been met in a socially responsible and environmental way by affordable solar power. It also meets the needs of the many micro-entrepreneurs in Africa. The Pay-as-you go model makes rooftop solar energy much more accessible and affordable particularly in the low-income and remote communities. However, saying that it has changed the lives of African community will be an understatement.