PAYG is a technology which removes the upfront price barrier of Solar Home Systems (SHS), by allowing end users to pay in affordable amounts over time. This is accomplished by additional electronics, which enables or disables the SHS on request, achieving a top-up payment structure similar to mobile phones.
In order to make a PAYG system work, there is a locking /unlocking functionality that needs to be integrated on the hardware of the system. All fosera. Solar Home Systems have the PAYG functionality included.
Secondly, a PAYG software backend is needed to track customer payments and offer Customer Relationship Management (CRM) functions, which is offered by PAYG service providers. Depending on the chosen PAYG service provider, the backend also includes warehousing, service management and many other functionalities.
Consumers pay with a token, purchased through mobile money or through a designated local vendor to make payments on a weekly or monthly basis. Once the customer stops paying, the system will shut automatically off.
Flexible repayment conditions allow customers to pay from their savings or current income. Customers can transfer their spending on kerosene, candles or batteries to an entry-level solar home system. Further, users only pay when the system is working.
Rural customers once unreachable by the grid can get immediate access to basic electricity without having to take out a loan.
Since the customer will only pay if the system works, PAYGO ensure a good after-sales-service and long-term success of rural electrification projects.
The PAYG market is growing strongly, enabling millions of people to access essential energy services. Currently for most systems, when PAYGO systems should be used for a project, the PAYG provider has to be selected and the corresponding software has to be installed in the battery box in the factory when the products are manufactured. A later change of the PAYG service provider is not possible, creating lock-in ecosystems.
Aware of this situation, has the The EnAccess Foundation has developed together with Solaris Offgrid an open source interface, facilitating the combination of various PAYG service and hardware combinations.
Open source technology is a key element for the solar industry. It is creating standards to facilitate the adoption of PAYGO products in the world by making this common interface available. PAYGO products, which use the OpenPAYGO Token are communicating via a common protocol making specific integration obsolete and enabling an easy switch of PAYGO software providers – even during field operations.
OpenPAYGO Token has been developed to make things easier for customers since it enables any PAYGO software to be integrated at zero cost. You can even use it and develop your own PAYGO platform.
How does it work?
Now a common communication interface between hardware and software is available on an open source base. The unlocking Tokens are created based on cryptographic principles which is linked to unique security keys corresponding to each system, ensuring a high level of security and preventing fraud.
Open PAYGO Token customers can choose to switch PAYG provider even when the systems are in the field. It is also possible to receive PAYG systems and move them to non PAYG & vice-versa thanks to a specific token typed on the Keypad, integrated on the battery.
… For more information, we recommend you to visit the EnAccess Foundation website.
PaygOps, Solaris Offgrid SaaS Software, connects energy and utility appliances, payment methods (mobile money) to a suite of enterprise applications (SaaS) or to API services (PaaS) allowing the smooth management of Pay-as-you-go (Paygo) lease financing and field operations while providing key financial data and metrics to investors into this market.