According to the International Energy Agency, 600 million people across Africa still lack access to electricity. This equates to 43% of the total population of the continent. Although on a global level energy access has improved vastly in the last decade, these numbers show that providing everyone with access to safe, reliable and sustainable energy remains an enormous task.

Alongside this challenge is the ongoing battle to mitigate climate change by reducing global emissions. Widening access to clean, reliable electricity is critical to sustainable development in Africa and Southern Asia. A large proportion of people across the global south are living below the poverty line and are particularly vulnerable to global macroeconomic shocks. The COVID-19 pandemic affected not only these people, but also the distribution networks that served them and the production lines that preceded them.

For us, the solution to both these problems is clear: to deploy distributed household-scale solar solutions that are independent of the grid, and finance them as well as the related appliances. This off-grid distributed solar model is showing incredible scale and now reaches hundreds of millions of people across the globe. Continuing on this path will see energy access served to all people in need.

Affordability, design and distribution 
Affordability, design and distribution are three integral parts to the mission of bringing energy access to underserved communities in the developing world.

Product affordability is arguably the most critical. Getting the product right and establishing distribution networks must be carefully carried out with a focus on affordability for the customer and low costs for the distributor. Without keeping costs low and therefore within reach of those in need, accessibility will be compromised.

One solution is a pay-as-you-go model, in which consumers can pay for a solar product with regular small payments over a set period of time, enabling them to divert money that would have otherwise been spent on fossil fuel-based energy solutions into an investment towards a renewable energy solution that they own and control. People living in unconnected off-grid communities want to purchase modern, clean and reliable energy solutions to improve the quality of their day-to-day lives, and this payment model can enable them to afford a solar home system to power their lives. 

At d.light, this mode of payment is accessible via specially designed software that is backed by on the ground support and guidance to a network of agent distribution partners across the world. This means products become instantly more accessible to more people and can reach a wider community.

Product design is another integral part of the process. Solar products, for instance, must be designed for use in communities and regions without access to a regular power supply. Ideally, they need to follow a set of human-centred design principles and enable feedback from the people using them to meet their unique needs. That means the product designer needs to maintain an openness to feedback and a willingness to make changes based on these needs.

Any product that intends to reach a wide and underserved consumer base must be easy to use, reliable, durable and able to power basic appliances such as lights and mobile phone chargers.

Last-mile distribution is the third essential part to widening access to clean energy. Establishing efficient distribution networks that reach even the most remote areas is not a simple or swift task. Networks must be built over time to ensure that products can be provided reliably and reach those in need.

Not only do the products reach more people, but these networks also lend themselves to the creation of jobs in remote areas and underserved communities. Local entrepreneurs and community members can act as distributors so that products reach those who really need them.

Establishing functioning partner networks plays a huge role in creating awareness, supporting customers with their products, and also working with governments to devise effective policies, subsidiary programmes and incentives for using renewable energy.

The power of solar 
Solar energy is ideal for expanding affordable energy access to low income, underserved communities. Solar powered products are not only safer than fuels that have historically been more common sources of energy such as kerosene, but they are also significantly more reliable as a power source. Solar is also consistently cheaper than other renewables such as wind and hydropower, since it requires far less equipment and infrastructure to function.

The obvious but important point is that in the areas that are more frequently underserved like in sub-Saharan Africa, the sun shines brighter, for more hours during the day and for longer periods of the year than in other areas of the globe. Africa contains seven of the 10 sunniest countries on Earth and sub-Saharan Africa accounts for 80% of people without electricity access. Therefore, providing people with off-grid products that rely on solar energy is a no-brainer.

A solar home system can provide reliable energy to off-grid homes and communities in remote areas not served by national or even local microgrids, in a way that saves money and which doesn’t generate any emissions. Even when a product such as a solar-powered lantern or radio is primarily used by one person in a household, the entire household benefits in some way.

Africa contains seven of the 10 sunniest countries on Earth and sub-Saharan Africa accounts for 80% of people without electricity access. Therefore, providing people with off-grid products that rely on solar energy is a no-brainer.

Financing energy expansion 
Much like the growth of rooftop solar in North America and Europe, the expansion of off-grid solar hinges on offering customers flexible financing solutions that makes solar more affordable and aligned with how they currently pay for energy. While many customers in off-grid communities are unable to shoulder the upfront costs of solar-powered products, financing options such as the pay-as-you-go model make purchasing solar products manageable and cost-effective while still being cheaper than dirty, unsafe, traditional alternatives such as kerosene.

But pay-as-you-go is not without its challenges. In recent years, a number of African countries have seen their local currencies significantly devalue, making it more challenging for businesses in the off-grid solar space that often source financing in US dollars ($) or Pounds sterling (£). This issue is exacerbated by the global uptick in interest rates, which further increases the cost of capital. All of this limits the ability for providers to secure the necessary funds to underwrite pay-as-you-go financing plans for their customers.

But despite these macroeconomic constraints, the pay-as-you-go business model has proven to be a viable and highly scalable route to energy access for people on a low income or who live in a rural unconnected community.

Expansion is driven by a business’ ability to secure financing to fund its growing operations. As a scalable method of financing, securitisation is an important fiscal tool for opening up access to sustainable energy at scale in countries with much of the population living below the poverty line.

The impact and value of increased energy access 
Lack of electricity is a major barrier to many services and institutions that industrialised countries take for granted. This includes quality healthcare services, which particularly impacts rural communities in Africa. According to the World Health Organisation, 15% of healthcare facilities lack any access to electricity in sub-Saharan Africa, whilst only 50% of hospitals in sub-Saharan Africa report reliable energy access.

It is easy to overlook how adequate lighting during evening hours is imperative for delivering care to sick and vulnerable people. Thanks to solar-powered lights and off-grid energy systems provided by d.light, 600 health clinics across sub-Saharan Africa now access sufficient lighting outside of daylight hours. As a result, these clinics can extend their operating hours – for instance, for expectant mothers in labour who would otherwise have given birth in darkness.

Access to evening light also fosters more vibrant communities where life continues after sunset – shops remain open, health clinics operate for longer and families can engage in social activities together. Affordable solar technology used in this way can transform a community by supporting education, enabling income generation and providing safer homes for families.

Expanding access to clean, reliable electricity is critical to sustainable development in Africa and Southern Asia
Photo: Nick Imudia, d.light

Next steps 
While much progress has been made, the number of people in underserved communities across Africa and the rest of the world who still lack access to energy remains high. Such is the scale of the task at hand. Providing access to reliable energy is complex but essential to the social and economic development of these communities, and to the quality of life of their members.

Of course, new challenges will emerge that strain supply chains, complicate access to financing and potentially disrupt communities. But through innovation, ingenuity and investment, access to clean and reliable energy will continue to expand and reach more people. We know the benefits that affordable, sustainable energy brings to households and communities. We have the means to provide it. The focus now is to get on with doing so.