Pay‑as‑you‑go solar home systems (SHS) deliver clean, reliable electricity to low‑income and rural households, enabling safe lighting, refrigeration for medication, and basic healthcare. Rather than harmful kerosene lamps that cause indoor air pollution, and risk fires, solar provides lifesaving lighting and power for medical devices.
Rural clinics and schools equipped with solar‑battery systems avoid vaccine spoilage, power crucial diagnostics, and maintain operations when the grid fails. That access can literally be the difference between life and death.
Unpacking the PAYG Model How It Works
- Solar Home Systems (SHS): A panel, battery, and lights (plus optionally phone‑charging or fans).
- Payment by mobile money: Users “unlock” the system via micro‑payments over weeks/months. Models are lease‑to‑own or usage‑based.
- Remote monitoring: Providers can remotely deactivate systems if payments lapse, which enforces repayment while minimizing default.
Also read: Egypt’s Blackout Crisis Sparks Solar‑Battery Shift
This model removes the unaffordable upfront cost barrier, PAYG makes solar financially accessible, especially for households that lack collateral for loans.
Health & Safety Impact
1. Better Indoor Air & Reduced Fire Risks
Substituting kerosene or diesel lighting improves respiratory health and lowers burn injuries due to flipped lamps and open flames.
2. Clinic Power for Life‑Saving Care
Clinics with solar systems now run refrigerators, incubators, ventilators, and lab equipment even during blackouts. That enables safe childbirth, vaccination campaigns, and emergency response in rural areas.
3. Education & Female Empowerment
Lighting allows children, especially girls, to study after dark. Solar‑powered schools with computers raise pass rates and open opportunities.
4. Community Nursery and Ambulance Readiness
Well‑lit roads, clinics, and charging stations contribute to safer night travel and communication during emergencies.
Socioeconomic Multiplier Effects
Solar power is proven to increase evening working hours: shopkeepers, barbers, mobile money agents, and even farmers can charge phones or run irrigation pumps. Studies show over one‑third of solar users report income rises of $35+/month, a big boost in local economies.
PAYG users also develop trust in mobile money usage, paying for energy builds financial inclusion.
Communities see job creation: technicians, installers, system maintainers, and small enterprises around energy services emerge.
Enablers and Barriers
Enablers
- Government tax incentives, like Section 12B accelerated depreciation and rebates up to R15,000 for rooftop solar (25% of panel cost), encourage households to adopt solar.
- Relaxed regulations for private generation and support for decentralized systems under national energy plans.
Barriers
- Financial: Many households still can’t afford PAYG packages, lacking credit history or mobile money access.
- Technical: Maintenance needs, battery life (~5‑10 years), panel theft, and lack of spare parts hinder system longevity.
- Social/institutional: Theft, lack of awareness, insufficient provider support and technician training remain widespread issues.
Real‑Life Stories from South Africa
In Limpopo’s Gwakwani village, a solar mini‑grid powers homes, school, clinic, bakery, and salon, reviving the local economy, improving health services, and boosting education access. In Qumbu (Eastern Cape), random blackouts isolated communities. With solar systems at schools and clinics, communities gained phone connectivity, lighting, and healthcare resilience.
System and Policy Improvements Needed
Governments and providers must ensure ongoing maintenance support, spare‑parts availability, and training for local technicians.
Subsidizing theft‑resistant equipment (fasteners, motion sensors) and expanding awareness campaigns will help adoption and sustainability.
Scaling Investment in Solar‑Powered Clinics
PAYG or energy‑as‑a‑service models can power rural clinics and schools. Installing off‑grid solar+battery kits rapidly transforms health delivery where the national grid lags. Investment in PV‑T solutions in hospitals can reduce energy bills by over 25%, with payback periods under 4 years and internal returns on investment nearing 30%.
Financial Innovation
Microloans, partnerships with mobile money providers, and integrating PAYG solar into school‑fee or agricultural loan products can reach the unbanked.
Also read: How Solar and Batteries Could Help Egypt Beat Its Blackouts
South Africa’s PAYG solar home system model is more than just convenience, it’s a life‑saving intervention, especially where grid electricity is unreliable or absent. Clinics powered at night can treat patients; refrigerators preserve medicines; households escape toxic fumes; kids get to study; families grow businesses. All through incremental payments, enabled by mobile money and community engagement.
While challenges remain, financial access, system maintenance, theft, progress across Africa shows the model works. For South Africa, ramping up PAYG solar adoption could dramatically improve health outcomes, education, and livelihoods in vulnerable communities.
Recommendations for Stakeholders
- Government: Expand rebates, provide micro‑loan programs, support local solar industry training, and strengthen theft‑deterrence policies.
- Health authorities & NGOs: Prioritize electrification of rural clinics using PAYG or centralized solar‑battery systems.
- Solar providers: Invest in local technician networks, offer ongoing maintenance contracts, and partner with mobile money platforms.
- Community leaders: Advocate for financial inclusion, solar awareness, and security measures to ensure sustainability.
