Affordable Pay-As-You-Go Solar Power for India's Energy-Poor Homes

Seventy-five (75) million households in India lack access to energy, while another 80 million are under-served. This situation has pushed many people to use expensive and hazardous means to light up their homes. Households spend half of their incomes on kerosene, charcoal, firewood, paraffin, candles, and disposable batteries for lighting and energy needs.

An off-grid, safe, and affordable decentralized solar power technology can spell a big difference. Backed by a $2 million equity investment from the Asian Development Bank, Simpa Networks is set to electrify an initial 63,000 homes in the country by 2015 with a technology comprising a solar home system and a low-cost prepaid meter. Once installed in their homes, users can purchase energy credits using the short messaging service on a mobile phone. After a certain period, households will own their solar systems, which will enable them to access energy free of charge.

The technology will be made available to rural households in Maharashtra and Uttar Pradesh, which has 3.4 million and 19.4 million energy-poor households, respectively. Other areas later to be covered by the technology include the states of Andhra Pradesh, Kerala, Gujarat, Madhya Pradesh, and West Bengal.

This publication shows how this simple energy system works. It details the components that go with the technology, and how they comprise a pay-as-you-go access to energy.