Pay-as-you-go solar reaches new frontiers

From the newsletter

Consumers in Gambia can now access solar power without paying the full cost up front. The West African country has introduced its first pay-as-you-go solar program to expand electricity access. The model allows rural households, which often lack the cash for large upfront purchases, to make small, flexible payments, opening access to more people.

• Pay-as-you-go (PAYGo) solar technology was pioneered in Kenya and has enabled millions in rural areas to gain electricity access, establishing Kenya as a leader in off-grid solar.

• For low-income countries such as Gambia, where only about 10% of the rural population has electricity, PAYGo is a game-changer. However, as with any new technology, it is likely to face initial resistance and trust issues with consumers.

More details

• The initiative is led by the Mbolo Association, a Gambian organisation, with support from the United Nations Development Programme (UNDP) under its Climate Promise initiative. The project offers three system models for households and businesses: small utility (1.2 kWp), medium utility (2.4 kWp), and large utility (5 kWp).

• Like many African countries, solar energy use in Gambia has been growing. Since 2023, the country has shifted from importing single-digit megawatts of solar panels from China to double digits. In 2023, Gambia recorded its highest import level of 29 MW, though this fell to nearly half in 2024. However, 2025 is showing promise, with imports reaching 11 MW in the first seven months.

• Despite this progress, affordability remains a major barrier for rural households who need solar the most. Many lack formal employment or credit history to secure financing. Pay-as-you-go technology is coming to bridge this gap by allowing consumers to pay in small, manageable instalments either on a daily or weekly basis, making solar more accessible in rural areas.

• Gambia now joins other African countries such as Kenya, South Africa, Nigeria, and Ghana, where PAYGo models are well established. Beyond expanding electricity access, these models have unlocked new business opportunities in solar refrigeration, water pumping, and digital connectivity. Gambia’s launch is particularly timely, coinciding with a renewed focus on integrating energy into agriculture. This could stimulate value addition and help increase farmers’ incomes.

• For long-term success, however, supportive policies, consumer education, and strong after-sales services will be critical. Kenya’s experience demonstrates that scaling PAYGo sustainably requires partnerships between local organisations, international donors, and private-sector players. Without this ecosystem, adoption may remain limited.

• With grid expansion often slow and costly, off-grid solutions like PAYGo are becoming central to Africa’s electrification drive. If Gambia can overcome early adoption challenges, it could join a growing list of countries proving that decentralised, market-driven models will accelerate universal energy access and cut fossil fuel reliance.

Our take

• Given that PAYGo is new in Gambia, early focus must be on awareness campaigns, transparent pricing, and reliable after-sales services. These will help overcome resistance and build user confidence in the model.

• Supportive policies, such as tax breaks on solar imports, consumer protection frameworks, and incentives for private investment, could determine whether PAYGo becomes mainstream or remains a niche solution.

• The program should quickly link with agricultural initiatives. PAYGo-enabled technologies like solar irrigation, cold storage, and agro-processing could transform farming productivity and rural incomes.