PAYGo’s Credit Problem is Putting Off-Grid Solar at Risk: Why the Sector Needs to Separate Sales from Lending
October 29, 2026
Pay-As-You-Go (PAYGo) solar has brought light and power to millions of rural households, demonstrating that they will use the installment payment model to purchase assets that improve their lives. But as Willem Nolens at in24 argues, the sector is now confronting a credit problem that puts both PAYGo businesses and their customers at risk, as low repayment rates are leading to power and asset loss among households across sub-Saharan Africa. He explores the causes of this challenge, and argues that the solution lies in splitting the sales and lending elements of PAYGO solar into separate providers.
