PEG Africa is a pay-as-you-go (PAYG) solar home system distributor and financer operating in Ghana and Ivory Coast. PEG Africa uses d.light home systems and provides 12 month lease terms to customers to pay off the ~$237 total purchase cost to customer. Many customers are receiving credit for the first time, and this “solar first” loan is a less risky introduction to credit as households are accustomed to monthly light (kerosene) expenses, and thus able to budget for the loan of the home system. Once customers pay off the initial solar home system loan, they are given access to credit for additional products and services.
PEG Africa is a solar light distributor that uses PAYG financing to get small solar home systems (8W) into the homes of beyond-the-grid populations primarily in Ghana, and have recently begun distributing in Ivory Coast. PEG Africa is aligned with GP’s Solar Lights initiative, and is strongly aligned from both an inclusion and products/services perspective. In Ghana the rural electrification rates are 35%. When taking into account frequent power outages, the population without access to reliable electricity increases dramatically. PEG Africa targets poor households by providing 12 month lease terms on 8W solar home systems to households that often do not have access to formal credit. While clients’ first loan finances a solar home system, the PAYG financing also allows customers to build credit so they are then able to begin financing additional useful and productive assets. Once the home system is paid off in 12 months, customers are then given access to financing for additional products and services including cookstoves, smart phones, TVs, and health insurance.