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Off-grid Solar Lacks Performance Indicators and Repayment Models

Many of the distributed energy service companies (DESCOs) providing PAYG off-grid solar products need significantly more capital investment in order to realize their plans for customer expansion and product development. This is a sector with high perceived risk, a weak pipeline, and an unfamiliar asset class, which means that investors have been slow to provide capital to the sector.
People Impacted
$ 67B
Potential Funding
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the problem
Nature and Context

In recent years, the emergence of cheaper solar energy options, and pay-as-you-go (PAYG) business models that make these options affordable, has provided more people with greater access to clean energy than ever before. However, many of the distributed energy service companies (DESCOs) providing PAYG off-grid solar products lack performance indicators and repayment models, limiting their capital investment and thus, consumer growth. Meanwhile, companies need to spend existing time and resources operating their business, while there are limited industry standards to help measure and report their performance and limited industry data available to help inform the most effective operating decisions. The World Bank worked on defining indicators based on input from companies, investors, and funders, and with feedback from testing on company data. The goal of the framework was to develop a first set of industry standards and tools available to off-grid companies, helping to facilitate investment assessments and promote stronger operational performance in the PAYG sector.

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