Battery Access: How Pay-As-You-Go Models Are Powering — and Risking — the Future of Energy Equity
— Who is left behind from accessing the electricity in the world? How can we help to improve the energy equity?
Global energy transition is not just about technological innovation; it’s also about business model revolution.
In markets where grid power is unreliable or absent, and where more flexible energy solutions are needed, we are witnessing a significant shift in how battery systems are paid for. The combination of Pay-As-You-Go (PAYG) models with Mobile Money is making clean, reliable energy accessible in unprecedented ways.
This is more than just a payment method; it’s a socio-economic transformation empowering millions.
Traditional Barriers vs. Innovative Breakthroughs
Around 770 million people still lack electricity globally, with the majority residing in Sub-Saharan Africa and Southeast Asia. For many households and small businesses in these regions, the high upfront cost of purchasing a full solar-battery system presents a significant barrier.
Even in some developed markets, consumers may prefer more flexible spending options. Traditional energy financing models often require credit histories or large deposits, excluding many low-income or unbanked populations.
However, innovative models like PAYG are transforming this landscape by leveraging ubiquitous mobile payment technologies, converting high capital expenditures into affordable, small installments.
Case Study: MOPO’s Mobile Money System
MOPO (Mobile Power) in Africa stands out as an excellent example of a successful PAYG model. They offer battery solutions including:
MOPO50 (~50Wh): For basic lighting and phone charging.
MOPOMax (~1kWh): As a generator replacement, providing 230V AC power for appliances like TVs and fridges, or even for e-mobility (e.g., motorbike battery swaps).
MOPO’s business model ingeniously integrates mobile payments:
Agent Network: MOPO establishes solar-powered hubs (MOPO Hubs) in local communities and trains local agents. These agents purchase activation credits for MOPO batteries via mobile money.
Flexible Payment: Customers pay agents in cash or via mobile money, and agents activate the battery using an NFC wristband or the MOPO App. Each activation typically provides 24 hours of power at a cost significantly lower than traditional alternatives (like kerosene lamps or generators).
Tech-Enabled Operations: MOPO’s batteries are IoT-enabled, ensuring power discharge only upon payment, and tracking location, payment status, and battery health in real-time. This decentralized and “offline-first” technology operates even in areas with unstable mobile network coverage.
Social Impact: This model not only provides affordable energy but also creates thousands of green jobs for local communities and stimulates regional economic growth.
Through this “pay-per-use” rental model, MOPO has transformed the lives of millions across Nigeria, the Democratic Republic of Congo, Sierra Leone, and Liberia, with over 20 million battery rentals completed.
Opportunities and Risks
✅ Opportunities: Access and Empowerment
No Upfront Cost: Eliminates the barrier of large initial investments, making energy accessible to a wider population.
On-Demand Usage: Provides flexibility for users with irregular incomes, allowing them to pay only for what they use.
Boost for Micro-Entrepreneurs: Empowers small shops, charging stations, and local transport fleets.
Scalable Revenue Model: Generates consistent recurring payments rather than relying on one-time sales.
❌ Risks: Fragility and Operational Risk
Missed Payments: Can result in immediate energy cut-off, impacting users’ access to essential services.
Battery Logistics: Managing battery distribution, collection, and maintenance in remote areas is challenging.
Technology Reliance: Dependency on mobile networks or app functionality means service disruption if technology fails.
Lifecycle and Theft Risks: Batteries are expensive assets, and their long-term lifecycle management and security in high-risk environments are critical concerns.
A Glimpse into Cities and C&I
In Southeast Asia, similar models are emerging for urban mobility and commercial use:
Oyika (SEA): Offers battery subscription plans (daily, weekly, monthly) for e-bikes.
Microgrids & SMEs: Leasing battery-inverter combinations for backup power and peak shaving.
C&I Potential: PAYG solar + battery for shops, schools, and agri-processing facilities.
What’s Next?
To truly scale, these models must:
Support multi-channel payments (cash + mobile + USSD + app).
Utilise data for predictive maintenance and smart pricing.
Extend to C&I, mobility, and microgrid segments.
Potentially blend with carbon credits or climate finance.
Final Thought
“Owning power” is no longer a prerequisite for accessing it. But for battery rental models to truly scale, we must balance reach with resilience, and access with accountability.