d.light
PAYG solar at 150 million users — how social enterprise, carbon finance and securitised receivables scale energy access.
Footage · The Earthshot Prize · YouTube
approx. 150 million
People reached
Cumulative end-users of d.light solar products globally
approx. 70+
Countries served
Primarily Sub-Saharan Africa and South Asia
approx. 17
Years operating
Founded 2007, iterative PAYG model since ~2012
approx. millions tonnes
CO2 offset claimed
Cumulative avoided emissions from kerosene displacement
approx. 12-24 months
Repayment period
Typical PAYG solar home system financing tenor
approx. single-digit %
Default rates
Reported industry-wide for mature PAYG portfolios
2007
d.light founded to sell solar lanterns to off-grid households, targeting kerosene displacement in Africa and Asia.
2011-2013
Shift to PAYG mobile-money-enabled solar home systems, embedding remote lock-out technology in hardware.
2015-2017
Scale-up across Sub-Saharan Africa and South Asia; approx. 20 million users reached via consumer financing partnerships.
2018-2020
Carbon credit monetisation (cookstove/solar displacement) added as parallel revenue stream alongside receivables.
2020-2022
Securitisation of PAYG receivables enables access to international debt markets, reducing reliance on donor capital.
2023-2024
Cumulative reach reported at approx. 150 million people served across 70+ countries via distributed solar products.
d.light's pay-as-you-go solar model shows how micro-payment technology, carbon credits and receivables securitisation can together fund off-grid energy access at scale. For Indian developers, DISCOMs and NBFCs pursuing rural electrification, mini-grids and rooftop solar-storage, the model demonstrates that consumer-financed hardware, embedded IoT metering and structured carbon/receivables finance can de-risk last-mile lending, cut collection costs and attract international capital without pure grant dependency.
India's RDSS, PM Surya Ghar rooftop scheme and mini-grid tenders under MNRE increasingly require consumer financing and digital payment integration similar to PAYG models. DISCOMs and rural electrification agencies can adapt d.light's metering-embedded collections approach for prepaid smart meters and decentralised renewable energy (DRE) systems. NBFCs and green banks structuring receivables from solar pumps, rooftop, or storage loans can use securitisation frameworks akin to d.light's, provided RBI and SEBI norms for asset-backed securities are aligned early. Carbon credit monetisation under India's proposed carbon market (CCTS) could similarly supplement DRE and mini-grid economics.
Engineering, procurement and finance lessons
01
Embed metering and control in hardware, not just billing
PAYG systems succeed because remote lock-out and usage data are built into the device itself, enabling automatic collection enforcement. Indian mini-grid and rooftop solar EPCs should specify IoT-enabled inverters/meters at design stage, not retrofit later, to support financiers' collateral and collection needs.
02
Carbon finance works best as a layered revenue stream
d.light treats carbon credits as a supplementary cash flow alongside consumer payments, not a sole funding source. Indian developers should structure carbon revenue as one tranche within a blended capital stack, verified independently, rather than the primary bankability driver for lenders.
03
Receivables securitisation needs standardised, granular data
Bundling thousands of small PAYG contracts into tradeable instruments required consistent digital payment records and default histories. Indian NBFCs financing solar-storage or e-mobility assets should build loan tape standardisation early to enable future securitisation or green bond issuance.
04
Consumer-facing hardware needs field-serviceable design
At 150 million-user scale, product durability and local repairability directly determine collection rates and social enterprise sustainability. Indian rural solar and storage EPCs must budget for after-sales service networks, not just installation, particularly in low-grid-density states.
05
Blended finance de-risks first-loss tranches for scale
Grant and DFI capital absorbed early losses, allowing later commercial debt to enter at scale. Indian green finance structures for last-mile electrification should similarly sequence concessional capital first, reserving commercial debt for proven repayment cohorts.
Sources · d.light corporate reports · World Bank ESMAP · GOGLA industry data · IFC off-grid solar market reports · IEA energy access outlook
- Structuring blended finance stacks combining concessional capital, carbon revenue and commercial debt for DRE and storage projects.
- Advising NBFCs and green banks on loan-tape standardisation for future receivables securitisation or green bond issuance.
- Supporting EPCs in specifying IoT-enabled metering and remote monitoring for last-mile solar and storage collections.