SolarHome, a Singapore-based solar energy company, plans to enter the Cambodian market this year, introducing the Pay-As-You-Go (PAYG) model for off-grid households in the Kingdom.
The company has also announced plans to establish a presence in Indonesia and the Philippines.
SolarHome offers a solar lighting system based on a subscription plan. Customers make an initial $10 down payment, which is followed by daily, weekly, or monthly repayments through scratch cards or mobile money.
After completing the payment plan, the system is “unlocked’ and transferred to the customer. According to a company press release, this “rent-to-own” model enhances customers’ access to financing and increases the affordability of their solar energy solutions.
“Technology built into the system ensures that it won’t function if a payment is not made, giving lenders the confidence that they will be able to recover their investment,” the company said.
A recent report by the World Bank’s Lighting Global Programme and the Global Off-Grid Lighting Association (GOGLA) found that between 2012 and 2017, companies using the PAYG model accounted for about 85 percent of growth in off-grid solar investments.