Pay-As-You-Go changed the economics of solar. Before it existed, many households were locked out of the market. The upfront cost was simply too high. Then the model changed. Instead of buying a solar system immediately, customers began paying small amounts over time.
This transformed solar adoption across Kenya and Africa. PAYG models are now deeply integrated with mobile money systems and have become one of the largest drivers of energy access.
What Is Pay-As-You-Go Solar?
Pay-As-You-Go, often shortened to PAYG, is a financing model. You pay a small deposit. You take the system home. You make regular payments through mobile money. Once payments are completed, ownership transfers permanently to you.
How The Customer Journey Works
Day 1: System Selection
You choose a package based on your needs.
Examples include:
- Lighting only
- Lighting plus television
- Small home systems
- Productive-use systems
Day 2: Deposit Payment
An initial payment unlocks access. The system is installed or activated.
Month 1 To Month 36: Scheduled Payments
Customers make:
- Daily payments
- Weekly payments
- Monthly payments
This varies by provider.
Final Stage: Ownership
The repayment period ends. The customer owns the system. The payments stop.
PAYG Customer Journey Timeline
| Stage | Customer Action | Outcome |
| Selection | Choose package | System reserved |
| Deposit | Initial payment | Activation begins |
| Repayment | Regular payments | Continued access |
| Completion | Final payment | Full ownership |
Who Benefits Most?
PAYG works well for:
- Rural households
- First-time solar users
- Small businesses
- Households without large savings
Companies such as M-KOPA, Sun King and d.light have expanded this model significantly across Kenya.
The One Trade-Off
Accessibility often increases total cost. Small payments spread over years may exceed a cash purchase. That is not necessarily a problem. The value proposition is access. Without access, there is no ownership. And without ownership, there are no energy savings. PAYG did not simply make solar cheaper. It made solar possible.
