By Okoro Uchechukwu
In recent years, off-grid solutions have provided much-needed energy to millions in communities across sub-Saharan Africa. Innovative service delivery models such as the Pay-as-you-go (PAYG) payment models have made it easier for low-income and intermittent earners to afford these solutions. The combination of these payment models and technology have resulted in an accelerated adoption of off-grid solutions over the past couple of years. GOGLA estimates that over 816,000 Solar Home System units were sold in Nigeria alone from 2017 to 2019.
Notwithstanding this impressive growth, the current pandemic poses severe challenges for off-grid consumers. For many off-grid consumers, it has resulted in a situation where many consumers cannot afford energy. The slow down in economic activities due to the lockdown and its associated economic impacts have affected many especially low-income earners with little to no social safety nets. As a result, consumers have had to prioritise their needs with many sacrificing energy payments in place of more essential daily needs like food. This has led to a situation where there is an increase in energy demand with limited funds for energy payment.
Providing Service in a Pandemic
Off-grid companies are stepping up and alleviating consumers’ plight via several innovative ways. By altering their payment and service models, energy providers are implementing initiatives to ensure consumers still have access to energy despite the downturn in finances. One of such ways has been offering new payment models that incentivise customers to pay upfront for extended supply. Others have extended payment schedules and relaxed cut-off deadlines for consumers.
Nigerian off-grid provider PAS Solar which runs an ‘energy as a service model’ provided consumers with the following incentives; “buy one, get one free scheme”, adjusted packages to suit specific consumers’ demand as well as ‘payment holidays’ for small businesses to cover energy bills during the inactive lockdown periods. These options provided consumers with much-needed payments flexibility. With the launch of a customer referral scheme, PAS Solar also incentivised neighbours to reduce energy bills while increasing the number of consumers serviced.
These activities are not peculiar to Nigeria. Across sub-Saharan Africa, energy providers have stepped up to ensure that the gains made in the off-grid space are not eroded by the economic fallout of the pandemic. Just like the innovative models that have made off-grid energy services popular in recent years, these providers are stepping up and adapting to make sure that vulnerable consumers have access to energy supply.