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Effects of Mobile-Platform-Based Microcredit Facilities on Uptake of PV Systems in Rural Developing Communities
N.N. Opiyo
Rural Electrification, Pay-As-You-Go (PAYG), Mobile Money Platforms, Microcredit Facilities
Finance, Markets and Policies
Subtopic: Policies and Scenarios for Renewables, Societal and Global Challenges
Event: 37th European Photovoltaic Solar Energy Conference and Exhibition
Session: 7DV.1.36
2098 - 2103
ISBN: 3-936338-73-6
Paper DOI: 10.4229/EUPVSEC20202020-7DV.1.36
0,00 EUR
Document(s): paper, poster


Energy poverty in rural developing communities are attributable to many factors including low load demands due to poverty, inadequate generation by host nations, inability to afford alternative power sources, and lack of microcredit facilities. In this work we investigate how pay-as-you-go how (PAYG) financial models based on mobile money platforms have stimulated PV installations in a typical rural developing community by enabling access to micro-lending through PAYG-based companies. Through modelling and simulations, and through case studies, we compare rates of PV installations without PAYG financing to rates of installations with PAYG financing, to determine impacts of such financial models on PV installations in a given rural developing community. We use PV installation data from Kendu Bay area of Kenya to inform the model. Results show that rural households’ access to unsecured microcredit facilities through PAYG arrangements has led to exponential increases in PV installations in the given communities, leading to increased electrification rates, and thus to improved standards of living.