Electrification has traditionally been measured by household access to things like lighting and phone charging, but its ability to drive real economic growth is often overlooked. This narrow focus means communities might have electricity but lack the means to escape poverty. Using electricity for income-generating activities, such as irrigation, food processing, refrigeration, and small-scale manufacturing, turns electrification from just a basic service into a powerful development tool. Evidence shows that planning which includes productive use of energy (PUE) can boost electricity demand by 50% or more, requiring systems that are bigger, more reliable, and better suited to community needs. Ignoring productive uses leads to underbuilt infrastructure, financial instability, and limited economic gains. On the other hand, including PUE improves affordability because businesses earn income to pay for electricity, creating a cycle of growth and sustainable systems. Agriculture is a key sector, with solar-powered irrigation and processing offering quick, scalable solutions for rural areas. Still, barriers like lack of technical knowledge, unreliable supply, poor market access, and limited financing continue to exclude the poorest households and deepen inequality. Successful electrification needs a shift from top-down, supply-driven models to community-centered planning that combines technology, training, credit, and market development. Including gender considerations is also crucial to prevent social disparities. Ultimately, electrification should be part of a broader strategy that links energy, enterprise, and sustainability. When productive uses are prioritized, electricity becomes a driver for poverty reduction and inclusive economic growth.