Written and Researched by EarthAction Intern Larry O'Connor
The Economist magazine recently published an article about a company that has developed an interesting way to profit from providing electricity to poor, sunny regions around the world. The company is based out of London and called Eight19, which refers how long it takes sunlight to reach the earth - 8 minutes and 19 seconds.
The Economist article focuses on Eight19’s “Pay as you go” solar program, where a family will be able to pay an upfront deposit of $10 US to purchase a solar cell and battery that have the ability to light two small rooms for 7 hours per day while charging one cell phone. The users then must purchase "scratch cards" using their cell phones to receive a reference number that will activate the devices. The "scratch cards" and reference numbers are sent via text message. Users can purchase any amount that they can pay for: a day, a week, or a month. These small purchases work toward paying off the cost of the device. After purchasing approximately eighty dollars’ worth of scratch cards, the customer will have paid off the entire cost of the battery and will have complete ownership of the unit.

Customers can then use their $80 US investment on a down payment to move up the "Indigo Energy Escalator" to obtain a larger solar battery unit, or they can just keep their solar unit and not spend any money on electricity. This energy escalator has four different levels, ranging from 3 to 80 watt capacity. The 80 watt solar cell generates light for a phone, four rooms, a radio, a TV, and a sewing machine.
This process was recently tested on a few hundred Kenyan families. Over the next two months Eight19 plans to release 4,000 solar kits in Kenya, Malawi, and Zambia. Many people in this region already have light and some electricity fueled by paraffin - a harmful waxy substance that comes from hydrocarbons used for lighting candles (pictured aboved). The most important aspect in this process is that these incremental payments are similar to what potential customers currently pay for paraffin to light lamps and the cost of charging a cell phone at a store.
Potential Implications of “Pay as you go solar”
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