A Study of Repayment and Impact in the PAYGo Solar Market.
Pay-as-You-Go (PAYGo) off-grid solar (OGS) solutions have a critical role to play in making energy connections affordable for those without energy access. Between 2015 and 2020, 25 -30 million people in Sub-Saharan Africa gained energy access through PAYGo.
Despite this, the industry is still facing a persistent challenge with repayment; the average collection rate has stagnated at around 65% between 2020 and 2023, with one in four PAYGo customers now struggling to make repayments (up from one in five in 2020). The challenge is particularly acute as companies expand into more remote and vulnerable populations, where only 22% of households lacking electricity can afford a basic Tier 1 solar home system with PAYGo.
Recognising this growing urgency, GOGLA launched the “Keeping the Lights On” project, supported by RVO SDG 7 Results and EnDev. This study aimed to:
- Identify and analyse the root causes of slow and missed repayment
- Document best practices for default management among PAYGo SHS companies
- Provide actionable insights for stakeholders across the ecosystem to improve repayment and quality of service, support business sustainability and ensure that development programmes, investments and policies have the greatest possible impact
Access the report here from GOGLA's website.