Simpa Networks has evolved a ‘Progressive Purchase‘ model for solar electricity, lighting up rural homes through a flexible payment option.
The International Energy Agency estimates that about 1.5 billion people around the globe do NOT have access to electricity and 85% of these people live in rural areas. In India, close to 40% of the country’s population still lives with limited access to grid electricity. This is not to say that rural India is in complete darkness. The up-front cost of procuring clean, affordable energy is high and so several parts of rural India rely on kerosene, charcoal and other forms of fuel that are easier to access and in local purchase terms, cheaper. The existence of these alternatives indicates that people have the ability to pay for energy, but it needs to be in a format and amount that they can access. Regular energy sources have not been able to find ways to fit this need yet. Simpa Networks leverages this insight into the rural market to find a way to fit within the ‘ability to pay’.
“Customers pay up to $1000 over 8-10 years for kerosene lanterns why not capture what the customer is willing to pay and give them a cleaner alternative?”says co-founder Michael Macharg.
Based in Bangalore, Simpa Networks aims to develop affordable energy solutions for the poor. Their product makes solar electricity accessible and affordable to the rural and under served consumer through their innovative pricing system called ‘Progressive Purchase’.