Pay-as-you-go (PAYG) is an innovative business model where energy service companies sell or lease solar photovoltaic (PV) systems, usually solar home systems (SHS), to customers in exchange for regular payments via mobile money, cash or scratch cards [1]. Due to the range of packages available, customers can choose from starter kits that supply a few lights and charge cell phones, to larger systems that can power TVs, radios, stoves and small fridges [1][2]. In some cases, if a customer cannot make payments, the energy service provider is able to switch off the system remotely, and switch them on again once payment is made [2
PAYG can even be used with other distributed forms of RE or integrated with micro/mini-grids at community level. Local governments can enable PAYG markets by ensuring favourable regulatory conditions, raising awareness, offering incentives and partnering with the private sector in order to support their electrification, sustainable development and climate protection goals.
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