Solar home systems and other solar powered appliances are made affordable through innovative pay-as-you-go (PAYGo) financing. PAYGo jointly addresses the challenges of energy access and financial inclusion for the more than one billion people — mainly rural and low income — who remain off-grid. This nascent and dynamic industry is populated by young companies with evolving business models, many of which face similar challenges to scale and raise debt financing at suitable terms. While commercial investors have invested approximately $160 million into PAYGo companies over the last two years, PAYGo businesses still lack debt financing and rely on equity financing for shortfalls.
Uniform Key Performance Indicators (KPI)’s can become an asset for off-grid solar distributors in their quest for long-lasting impact and profitability. Our partners at the Global Off-Grid Lighting Association (GOGLA) share these testimonies from GAIA Impact Fund and Solaris Offgrid. — companies and investors alike share their ability to enable finance and improve company performance. With the right set of standardized financial reporting benchmarks the PAYGo sector could more easily finance and evaluate performance.