Sustainability Language · An EmpCo reference
Energy access
Pay-As-You-Go Solar (PAYG)
Definition
Pay-as-you-go solar is a business model in which customers acquire solar home systems or appliances through small incremental payments, typically via mobile money, with the system remotely activated only while payments are current. After the payment period the customer owns the system outright, converting energy spending into an asset.
References
model definition and market scale
PAYG role in energy access expansion
Overview
What it means
Upfront cost was the main barrier to off-grid solar; PAYG removes it by matching payments to household cash flow, while embedded metering and mobile payments make remote servicing feasible. The model has connected tens of millions of people, mainly in East and West Africa, and spawned an industry association and consumer-protection codes.
How it is used
The term is standard in energy access finance and market tracking (e. g. , by GOGLA and World Bank Lighting Global); variations include pay-as-you-consume energy services and PAYG for pumps, clean cooking and productive-use equipment.
Why it matters
PAYG demonstrated that off-grid clean energy can be a scalable business rather than a subsidy programme, making it a central model for delivering SDG 7 in off-grid regions.