The Big Benefits Of Small Off-Grid Solar Power

Micro off grid solar systems deployed in households across East Africa are boosting productivity, connectivity, health, prosperity and general quality of life.

Approximately 120 million people in Africa and Asia have made the switch from kerosene lamps, candles and diesel generators to off-grid solar since 2010. While these systems may be tiny compared to the solar systems we whack on our rooftops here in Australia, it’s amazing what a huge difference even a micro solar power setup can make in people’s lives.

The successful rollout of off-grid solar power is largely due to pay-as-you-go (PAYG) business models, whereby companies provide the equipment and the customer uses their mobile phone to make small payments for the system on a regular basis; with some assuming ownership after certain period.

These micro-solar providers tend to structure payments for basic systems to be less than what a household would usually spend on kerosene. The systems are commonly comprised of a small solar panel, battery, regulator, rechargeable or solar light and USB charging points. “High-end” kits can also include entertainment options such as a TV and/or radio.

According to a recently published report by the Global Off-Grid Lighting Association (GOGLA), data collected from over 2,300 small-scale PAYG solar owners in Kenya, Mozambique, Rwanda, Tanzania and Uganda indicated:

• More than 33% of those surveyed reported an average income increase of USD $35 a month. This may not sound like much, but it’s more than half the average monthly GDP per capita of the countries surveyed.
• 10% have started a new business.
• 44% said they are using previously dark and unproductive hours to work.
• 58% of households of households were undertaking more work and enterprise.
• 7% said their system enabled them to get a new job, with 69% of these households reporting an immediate increase in income.
• 90% of households replaced toxic, polluting and expensive kerosene lighting with solar lamps. Of these households, 91% report health improvements.
• 91% of households felt safer since acquiring a system.
• 94% reported an improvement in quality of life with solar.
• 84% of households with children said their kids now have more time to do their homework as they can study in the evenings.
• 89% of customers reported increased use of their mobile phones (no longer needing to visit fee-for-service charging stations, which may be some distance away).

One of the other important benefits of the off-grid solar power boom is jobs in the sector, with companies often employing people from within local communities as distributors.

“GOGLA’s new report shows that the net economic and social benefits off-grid solar are a huge opportunity for national governments of the developing world,” said GOGLA Executive Director Koen Peters.

There’s still plenty of work to be done on this front. GOGLA says 1 billion people across Africa and Asia are still unable to access electricity and has called on governments to work with off-grid solar companies and financial institutions to make micro-scale PV accessible to all.

GOGLA’s report, ‘Powering Opportunity: The Economic Impact of Off-grid Solar’, can be downloaded here (PDF).