BEST OFF GRID SOLAR SYSTEM FULL

Addressing the challenge of financing the growth of the PAYGo industry, Geoff stressed that companies, investors and lenders need to better address loan servicing risk in order to fuel healthy and sustainable market growth. Our new report, published alongside financial inclusion specialists CGAP, “Taming the Strange Beasts: Servicing and the Future of PAYGo” is co-authored by CDC’s Geoff Manley, Emma Hawkins and Mathilde Girard, and looks at the underlying risk of servicing consumer PAYGo loans for Solar Home Systems and its implications for financing options to support the market’s growth.Īt the recent Unlocking Solar Capital conference in Kigali, Rwanda, CDC’s Geoff Manley helped launched the report during a roundtable of major market players. By extension, lenders to PAYGo companies also bear this fundamental risk. As with any bank or micro-finance lender, the ability of the PAYGo company to collect repayments from their customers, known as loan servicing, is critical to its long-term financial viability. This time difference between payment and cash collection creates large and growing financing needs that companies usually address by raising loans from investors.

BEST OFF GRID SOLAR SYSTEM FULL

PAYGo companies pay their suppliers for solar systems up front but must wait 12 to 36 months to collect the full cash payment of the systems from their customers. Over 2.5 million households now have access to solar power thanks to PAYGo companies, but the sector needs more capital to grow. Once the customer has finished paying for the system, it unlocks permanently and becomes his or her property. If a customer is late in making a payment, their system shuts off automatically, and they can reactivate it by making a new payment.

Under the PAYGo model, a customer makes flexible daily, weekly or monthly payments through mobile money to progressively acquire their Solar Home System.

By selling Solar Home Systems and related appliances and allowing customers to pay for the system over time, PAYGo solar companies make these systems affordable and bring the benefits of clean, reliable energy to those without electricity. Off-grid solar companies can help address this challenge. Many live in rural or peri-urban areas and are unlikely to be connected to the electricity grid in the near future. We recently launched a new report alongside our colleagues at CGAP that looks at how best to finance off-grid solar companies that use pay-as-you-go (PAYGo) technology to deliver modern, green energy to millions of Africans.Ħ00 million Africans – 70 per cent of the population – currently live without access to electricity. I’m looking to invest in developing countries.How best to finance off-grid solar companies - British International Investment

Best off grid solar system