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<p>The Pay-As-You-Go (PayGo) solar power sector in Africa has rapidly evolved over the last decade, with PayGo solar companies increasingly securing private and commercial investments. While this trend is inevitable and desirable, it will likely impact solar power accessibility for lower-income households. This perspective argues that companies will prioritise commercial objectives over social goals, causing tensions between serving lower-income communities and accessing commercial capital. This could reshape who benefits from PayGo solar, reduce the PayGo solar market, and weaken smaller PayGo companies. We urge deliberate consideration of lower-income groups in fundraising efforts and call for flexible financing, inclusive incentives, strategic public-private partnerships, and regulatory incentives to attract sustainable private investment. This would ensure that the benefits of PayGo solar power accrue to lower-income groups, ensuring that they are not left behind as the sector evolves.</p>

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The Pay-As-You-Go solar power sector evolution should not leave Africa’s most vulnerable behind

  • 期刊论文

  • 出版模式：

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  • 发表日期：

    2026年5月9日

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  • Penlope Yaguma,
  • Katharina Oemmelen,
  • Fred Tuhairwe,
  • Whitney Pailman,
  • Paddy Bakengana

摘要

The Pay-As-You-Go (PayGo) solar power sector in Africa has rapidly evolved over the last decade, with PayGo solar companies increasingly securing private and commercial investments. While this trend is inevitable and desirable, it will likely impact solar power accessibility for lower-income households. This perspective argues that companies will prioritise commercial objectives over social goals, causing tensions between serving lower-income communities and accessing commercial capital. This could reshape who benefits from PayGo solar, reduce the PayGo solar market, and weaken smaller PayGo companies. We urge deliberate consideration of lower-income groups in fundraising efforts and call for flexible financing, inclusive incentives, strategic public-private partnerships, and regulatory incentives to attract sustainable private investment. This would ensure that the benefits of PayGo solar power accrue to lower-income groups, ensuring that they are not left behind as the sector evolves.