What is PAYG (Pay-as-you-go) model?
PAYG (Pay-as-you-go) is a system in which a person pays for the costs of something when they occur rather than before or afterward to facilitate payment by installments. The package usually includes a home solar system that customers pay for using mobile payment technologies and mobile phone credit.
➜Improve energy access in off-grid areas
➜ Defer network expansion investments
➜ Enable other innovative business models,
such as peer-to-peer trading or community ownership
Key enabling factors
➜Electriﬁcation strategy that accounts for pay as you go (PAYG) and off-grid systems
➜Consumer awareness of PAYG models
➜Access to ﬁnance for local energy service providers
➜Between 2015 and 2020, around 8 million people gained energy access with PAYG models
➜ About two-thirds of the world’s off-grid energy consumers have access to mobile networks
➜ Almost 40 million off-grid solar systems were sold globally by 2019
How PAYG (Pay-as-you-go) works?
Nearly 840 million people worldwide do not have access to electricity, and over 1 billion people are connected to an unreliable grid. As the unserved population is not connected to the main grid, extending the grid is an integral part of providing those populations with energy access. However, extending the grid involves significant capital outlay and long lead times for the construction of new infrastructure. An alternative to grid extension is power from distributed solar photovoltaic (PV)systems. The decreasing costs of such systems represent an opportunity for these communities to gain electricity access without the need for grid extension. Making the upfront investments necessary to set up distributed renewable energy systems to satisfy electricity demand and improve supply reliability remains a difficult undertaking in many areas, particularly rural communities. Also, as of 2017, an estimated 1.7 billion people around the world still do not have access to a conventional bank account or financial network.
Although thus far used mostly for solar energy. The PAYG model can also deliver electricity from other renewable energy sources, such as biomass. The core components of a solar home system, based on the PAYG business model, are as follows:
(i) Solar PV panel (modules, inverter, cables, etc.)
(ii) Battery storage system
(iii) Mobile payment system
(iv) Information and communications technology, with control units providing
- information on the charge left in batteries
- payment reminders
(v) Power-consuming appliances, like LED bulbs or mobile phones (plus phone-charging cables)
Shenzhen Solar Run Energy Co., Ltd provides PAYG (Pay-as-you-go) turnkey solution in the earliest batch in China, so can enable people to pay by small installments using their mobile phones. It offers diverse one-stop solar solutions products for off-grid markets in 55 developing countries, including pico, solar home system, and PAYG (Pay-as-you-go) and we keep developing bigger systems to power more home appliances like televisions, fans, fridges, sewing machine, etc to meet more demands of off-grid people to replace deleterious and expensive kerosene and candles with modern solar energy. In this way, clean energy becomes more affordable, which is what our company has been aiming for.
Currently, our PAYG products already sold and run for years in Nigeria, Kenya, Malawi, Burkina Faso, Rwanda, Republic of Congo, Vanuatu, etc…and the World bank these years have big support for PAYG products since it enables rural, low-income populations to access modern clean energy solutions earlier.
Below are some of our PAYG products for references. If you are interested, welcome to contact us for more details.