This archive report was first published on 22 September 2019.
September 22, 2019, marked a significant milestone in the adoption of off-grid solar power systems in East Africa. According to a report by the Global Off-Grid Lighting Association (GOGLA), nearly 30 million people in the region are currently benefiting from these systems.
The research, conducted by Altai Consulting, involved collecting data from homeowners with Small Solar Home Systems (SHS) in Kenya, Mozambique, Rwanda, Tanzania, and Uganda. The findings revealed that an overwhelming majority (94%) of people living with off-grid solar home systems reported improvements to their quality of life.
Furthermore, the research highlighted that a significant 34% of households with SHS reported being economically active, mainly through an increase in working hours per day or the starting of new businesses and other entrepreneurial opportunities. This led to an average increase of $46 per month in income.
Interestingly, the research showed that a substantial 59% of households with SHS earn less than $3.20 per day, indicating that these systems are reaching those who are most in need – low-income households not connected to the main electricity grids.
The widespread adoption of off-grid solar power systems in East Africa can be attributed to the prevalence of mobile money, which has enabled households to easily pay for solar products through the Pay-As-You-Go model. Companies such as M-Kopa, BBOXX, Fenix, d.light, and Mobisol have established flexible payment plans, making off-grid systems a reality for rural homesteads.
However, questions remain regarding the quality of SHS packages, which have been reported to have lower shelf life towards the end of the payment period, typically lasting up to 2 years.
Related: Engie acquires Mobisol to become Africa’s leading off-grid solar energy provider, M-KOPA Receives Financial Backing from Japan’s Sumitomo Corporation, Uganda’s SolarNow Raises $9M for Deployment of its Off-Grid Solar System
