Results-Based Financing (RBF) has helped make energy access a reality for millions. Yet governments, investors and off-grid solar companies have also encountered implementation challenges, including payment delays and potential market distortions. With RBFs embedded as a core delivery mechanism under Mission 300 and other large-scale access initiatives, it is essential to apply these lessons to improve RBF design and implementation in ways that deliver durable access, resilient markets and sustained investment.
In a new article, Ryan Kilpatrick, Director of Strategic Communications and Advocacy of GOGLA, and Sarah Malm, Executive Director of GOGLA, draw on GOGLA's experience, their previous industry consultations, and ongoing engagement with governments, funders and implementers in order to consolidate evidence to help inform the next generation of RBF programme design.
As new RBF programmes are developed, the authors encourage governments, the World Bank Group, donors and implementing partners to consider the following guiding principles:
- Embed sustainability of access at the core of RBF design, supporting long-term customer access, viable delivery companies and resilient markets beyond the life of the subsidy.
- Ground subsidy levels in affordability analysis and market evidence, with clear caps, review points and credible exit pathways.
- Align incentives with long-term access, including system functionality, maintenance and responsible consumer financing, rather than sales alone.
- Ensure predictable programme funding, allocation transparency and timely payments so companies are not required to pre-finance public subsidies for extended periods.
- Design RBFs as part of a broader policy toolkit, alongside fiscal reforms, foreign exchange risk solutions and access to appropriate finance.
- Ensure RBF frameworks can accommodate diverse business models, including energy-as-a-service, micro-asset financing, battery rental and other models that can demonstrably improve affordability and long-term access.
- Engage industry early and continuously, drawing on operational experience across different markets, technologies and business models.
Please find the full article on the GOGLA website here.