FIBR Briefing Note - PAYGo Solar: Lighting the Way for Flexible Financing and Services

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Title
FIBR Briefing Note - PAYGo Solar: Lighting the Way for Flexible Financing and Services
Author
FIBR; BFA; Mastercard Foundation
Year
2017
Abstract
This FIBR briefing note introduces PAYGo solar as an emerging solution to provide affordable energy access to off-grid populations, addressing both customer affordability and operator scalability. The PAYGo model involves a small deposit followed by regular mobile money payments, which unlock the solar device until the lease is complete and ownership transfers. This model has seen significant growth, particularly in East Africa due to high mobile money penetration. The briefing highlights how PAYGo leverages mobile payments and data to offer flexible financing and services. However, the sector faces challenges in maintaining portfolio quality amidst growth, managing agent networks, navigating customer payment frictions, and securing local capital. FIBR aims to address these issues by focusing on unlocking local capital, building data-driven financial operations, tackling payment frictions, and improving agent network management. The PAYGo model is presented as a form of "indirect financial inclusion".
Resource Subject
  • Financial Inclusion
Keywords/Access Points
PAYGo Solar; Energy Access; Off-Grid; Mobile Payments; FIBR
Language
  • English
Archival Record ID
MFA.2024.1046