Improving access to sustainable energy services and reducing the carbon footprint and deforestation of developing countries presents a substantial challenge to the development industry. This paper aims to critically assess two prevalent business models emerging to meet this challenge: financial institution–technology provider partnerships and the one-stop-shop, pay-as-you-go (PAYG) model. The authors find that collaborations between financial institutions and energy providers need to address grey areas such as product quality standards, marketing, and post-sales services, and incorporate feedback loops to continually evaluate the performance of the partnership. Pay-as-you-go presents an intriguing business case to leapfrog more traditional energy access programmes. However, more robust results from the field need to be reported before the PAYG movement can claim success. Ultimately, collaborative and integrated actions by all stakeholders are needed to achieve universal energy access.

Abdullah, S. and Markandyab, A. (2009) Rural Electrification Programmes in Kenya: Policy Conclusion from a Valuation Study, Bath, UK: University of Bath <http://dx.doi.org/10.1016/j.esd.2011.10.007>.

Advisory Group on Energy and Climate Change (AGECC) (2010) Energy for a Sustainable Future: Report and Recommendations, New York: Secretary-General’s Advisory Group on Energy and Climate Change.

Ahlborg, H. and Hammar, L. (2014) ‘Drivers and barriers to rural electrification in Tanzania and Mozambique: grid-extension, off-grid, and renewable energy technologies’, Renewable Energy 61: 117–24 <http://dx.doi.org/10.1016/j.renene.2012.09.057>.

Alliance for Rural Electrification (ARE) (2009) A Green Light for Renewable Energy in Developing Countries, Brussels, Belgium: ARE.

Asian Development Bank (ADB) (2005) Republic of the Fiji Islands: Rural Electrification Project, Technical Assistance Consultant’s Report, Manila, Philippines: ADB.

Beck, F. and Martinot, E. (2004) ‘Renewable energy policies and barriers’, in C.J. Cleveland (ed.), Encyclopedia of Energy, pp. 365–83, New York: Elsevier.

Chakrabarti, S. and Chakrabarti, S. (2002) ‘Rural electrification programme with solar energy in remote region: a case study in an island’, Energy Policy 30(1): 33–42 <http://dx.doi.org/10.1016/S0301-4215(01)00057-X>.

Chaurey, A. and Kandpal, T.C. (2010) ‘Assessment and evaluation of PV based decentralized rural electrification: an overview’, Renewable and Sustainable Energy Reviews 14(8): 2266–78 <http://dx.doi.org/10.1016/j.rser.2010.04.005>.

Craine, S., Mills, E. and Guay, J. (2014) Clean Energy Services For All: Financing Universal Electrification, San Francisco: Sierra Club.

Cust, J., Singh, A. and Neuhoff, K. (2012) Rural Electrification in India: Economic and Institutional Aspects of Renewables, Cambridge, UK: University of Cambridge.

ESMAP (2000) Reducing the Cost of Grid Extension for Rural Electrification, ESMAP Report 227/00, Washington, DC: World Bank.

International Energy Agency (IEA) (2011) World Energy Outlook: Executive Summary, Paris: OECD/IEA.

Kumar, K. and Winiecki, J. (2014) Access to Energy via Digital Finance: Overview of Models and Prospects for Innovation, Washington, DC: CGAP.

Legros, G., Havet, I., Bruce, N. and Bonjour, S. (2009) The Energy Access Situation in Developing Countries: A Review Focusing on the Least Developed Countries and Sub-Saharan Africa, New York: United Nations Development Programme (UNDP); Geneva: World Health Organization.

Levaï, D., Rippey, P. and Ryhne, E. (2011) Microfinance and Energy Poverty: Findings from the Energy Links Project. Final Report to AED (now FHI 360) and USAID under the FIELD Project, Boston, MA: Center for Financial Inclusion at ACCION International.

Microfinanza (2013) Country market study on microfinance and energy, unpublished material, Vicenza, Italy: Microfinanza.

Morris, E., Winiecki, J., Chowdhary, S. and Cortiglia, K. (2007) Using Microfinance to Expand Access to Energy Services: Summary of Findings, Washington, DC: The SEEP Network.

Msimanga, B. and Sebitosi, A.B. (2014) ‘South Africa’s non-policy driven options for renewable energy development’, Renewable Energy 69: 420–7 <http://dx.doi.org/10.1016/j.renene.2014.03.041>.

Pepermans, G., Driesen, J., Haeseldonckx, D., D’haeseleer, W. and Belmans, R. (2005) ‘Distributed generation: definition, benefits and issues’, Energy Policy 33(6): 787–98 <http://dx.doi.org/10.1016/j.enpol.2003.10.004>.

Pode, R. (2013) ‘Financing LED solar home systems in developing countries’, Renewable and Sustainable Energy Reviews 25: 596–629 <http://dx.doi.org/10.1016/j.rser.2013.04.004>.

Pope, C. (2012) ‘Solar power off the grid: energy access for world’s poor’, Yale Environment 360 [online] <http://e360.yale.edu/feature/solar_power_off_the_grid_energy_access_for_worlds_poor/2480/> [accessed 21 July 2015].

Rebane, K. and Braham, B. (2011) ‘Knowledge and adoption of solar home systems in rural Nicaragua’, Energy Policy 39: 3064–75 <http://dx.doi.org/10.1016/j.enpol.2011.02.005>.

Sharif, I. and Mithila, M. (2013) ‘Rural electrification using PV: the success story of Bangladesh’, Energy Procedia 33: 343–54 <http://dx.doi.org/10.1016/j.egypro.2013.05.075>.

Srinivasan, S. (2005) ‘Solar home systems: offering credit and ensuring recovery’, Refocus 6(1): 38–41 <http://dx.doi.org/10.1016/S1471-0846(05)00293-3>.

Srinivasan, S. (2007) ‘Microfinance for renewable energy: financing the former poor’, World Review of Entrepreneurship, Management and Sustainable Development 3(1): 79–89 <http://dx.doi.org/10.1504/WREMSD.2007.012132>.

Truran, G. (2004) ‘The poor man’s fuel: the continued use of paraffin for domestic energy requirements in low income households’, 8th World Congress on Environmental Health. Durban, South Africa, p. 11.

Winiecki, J., Morris, E. and Armacost, N. (2009) End-user Finance: A Guide for Sustainable Energy Enterprises and NGOs, London: Ashden Awards for Sustainable Energy.

World Bank (2008a) Costing Power Infrastructure Investment Needs in Southern and Eastern Africa, Econ Pöyry Report, Washington, DC: World Bank.

World Bank (2008b) Designing Sustainable Off-Grid Rural Electrification Projects: Principles and Practices, Washington, DC: Energy and Mining Sector Board.

Abdullah, S. and Markandyab, A. (2009) Rural Electrification Programmes in Kenya: Policy Conclusion from a Valuation Study, Bath, UK: University of Bath <http://dx.doi.org/10.1016/j.esd.2011.10.007>.

Advisory Group on Energy and Climate Change (AGECC) (2010) Energy for a Sustainable Future: Report and Recommendations, New York: Secretary-General’s Advisory Group on Energy and Climate Change.

Ahlborg, H. and Hammar, L. (2014) ‘Drivers and barriers to rural electrification in Tanzania and Mozambique: grid-extension, off-grid, and renewable energy technologies’, Renewable Energy 61: 117–24 <http://dx.doi.org/10.1016/j.renene.2012.09.057>.

Alliance for Rural Electrification (ARE) (2009) A Green Light for Renewable Energy in Developing Countries, Brussels, Belgium: ARE.

Asian Development Bank (ADB) (2005) Republic of the Fiji Islands: Rural Electrification Project, Technical Assistance Consultant’s Report, Manila, Philippines: ADB.

Beck, F. and Martinot, E. (2004) ‘Renewable energy policies and barriers’, in C.J. Cleveland (ed.), Encyclopedia of Energy, pp. 365–83, New York: Elsevier.

Chakrabarti, S. and Chakrabarti, S. (2002) ‘Rural electrification programme with solar energy in remote region: a case study in an island’, Energy Policy 30(1): 33–42 <http://dx.doi.org/10.1016/S0301-4215(01)00057-X>.

Chaurey, A. and Kandpal, T.C. (2010) ‘Assessment and evaluation of PV based decentralized rural electrification: an overview’, Renewable and Sustainable Energy Reviews 14(8): 2266–78 <http://dx.doi.org/10.1016/j.rser.2010.04.005>.

Craine, S., Mills, E. and Guay, J. (2014) Clean Energy Services For All: Financing Universal Electrification, San Francisco: Sierra Club.

Cust, J., Singh, A. and Neuhoff, K. (2012) Rural Electrification in India: Economic and Institutional Aspects of Renewables, Cambridge, UK: University of Cambridge.

ESMAP (2000) Reducing the Cost of Grid Extension for Rural Electrification, ESMAP Report 227/00, Washington, DC: World Bank.

International Energy Agency (IEA) (2011) World Energy Outlook: Executive Summary, Paris: OECD/IEA.

Kumar, K. and Winiecki, J. (2014) Access to Energy via Digital Finance: Overview of Models and Prospects for Innovation, Washington, DC: CGAP.

Legros, G., Havet, I., Bruce, N. and Bonjour, S. (2009) The Energy Access Situation in Developing Countries: A Review Focusing on the Least Developed Countries and Sub-Saharan Africa, New York: United Nations Development Programme (UNDP); Geneva: World Health Organization.

Levaï, D., Rippey, P. and Ryhne, E. (2011) Microfinance and Energy Poverty: Findings from the Energy Links Project. Final Report to AED (now FHI 360) and USAID under the FIELD Project, Boston, MA: Center for Financial Inclusion at ACCION International.

Microfinanza (2013) Country market study on microfinance and energy, unpublished material, Vicenza, Italy: Microfinanza.

Morris, E., Winiecki, J., Chowdhary, S. and Cortiglia, K. (2007) Using Microfinance to Expand Access to Energy Services: Summary of Findings, Washington, DC: The SEEP Network.

Msimanga, B. and Sebitosi, A.B. (2014) ‘South Africa’s non-policy driven options for renewable energy development’, Renewable Energy 69: 420–7 <http://dx.doi.org/10.1016/j.renene.2014.03.041>.

Pepermans, G., Driesen, J., Haeseldonckx, D., D’haeseleer, W. and Belmans, R. (2005) ‘Distributed generation: definition, benefits and issues’, Energy Policy 33(6): 787–98 <http://dx.doi.org/10.1016/j.enpol.2003.10.004>.

Pode, R. (2013) ‘Financing LED solar home systems in developing countries’, Renewable and Sustainable Energy Reviews 25: 596–629 <http://dx.doi.org/10.1016/j.rser.2013.04.004>.

Pope, C. (2012) ‘Solar power off the grid: energy access for world’s poor’, Yale Environment 360 [online] <http://e360.yale.edu/feature/solar_power_off_the_grid_energy_access_for_worlds_poor/2480/> [accessed 21 July 2015].

Rebane, K. and Braham, B. (2011) ‘Knowledge and adoption of solar home systems in rural Nicaragua’, Energy Policy 39: 3064–75 <http://dx.doi.org/10.1016/j.enpol.2011.02.005>.

Sharif, I. and Mithila, M. (2013) ‘Rural electrification using PV: the success story of Bangladesh’, Energy Procedia 33: 343–54 <http://dx.doi.org/10.1016/j.egypro.2013.05.075>.

Srinivasan, S. (2005) ‘Solar home systems: offering credit and ensuring recovery’, Refocus 6(1): 38–41 <http://dx.doi.org/10.1016/S1471-0846(05)00293-3>.

Srinivasan, S. (2007) ‘Microfinance for renewable energy: financing the former poor’, World Review of Entrepreneurship, Management and Sustainable Development 3(1): 79–89 <http://dx.doi.org/10.1504/WREMSD.2007.012132>.

Truran, G. (2004) ‘The poor man’s fuel: the continued use of paraffin for domestic energy requirements in low income households’, 8th World Congress on Environmental Health. Durban, South Africa, p. 11.

Winiecki, J., Morris, E. and Armacost, N. (2009) End-user Finance: A Guide for Sustainable Energy Enterprises and NGOs, London: Ashden Awards for Sustainable Energy.

World Bank (2008a) Costing Power Infrastructure Investment Needs in Southern and Eastern Africa, Econ Pöyry Report, Washington, DC: World Bank.

World Bank (2008b) Designing Sustainable Off-Grid Rural Electrification Projects: Principles and Practices, Washington, DC: Energy and Mining Sector Board.

Abdullah, S. and Markandyab, A. (2009) Rural Electrification Programmes in Kenya: Policy Conclusion from a Valuation Study, Bath, UK: University of Bath <http://dx.doi.org/10.1016/j.esd.2011.10.007>.

Advisory Group on Energy and Climate Change (AGECC) (2010) Energy for a Sustainable Future: Report and Recommendations, New York: Secretary-General’s Advisory Group on Energy and Climate Change.

Ahlborg, H. and Hammar, L. (2014) ‘Drivers and barriers to rural electrification in Tanzania and Mozambique: grid-extension, off-grid, and renewable energy technologies’, Renewable Energy 61: 117–24 <http://dx.doi.org/10.1016/j.renene.2012.09.057>.

Alliance for Rural Electrification (ARE) (2009) A Green Light for Renewable Energy in Developing Countries, Brussels, Belgium: ARE.

Asian Development Bank (ADB) (2005) Republic of the Fiji Islands: Rural Electrification Project, Technical Assistance Consultant’s Report, Manila, Philippines: ADB.

Beck, F. and Martinot, E. (2004) ‘Renewable energy policies and barriers’, in C.J. Cleveland (ed.), Encyclopedia of Energy, pp. 365–83, New York: Elsevier.

Chakrabarti, S. and Chakrabarti, S. (2002) ‘Rural electrification programme with solar energy in remote region: a case study in an island’, Energy Policy 30(1): 33–42 <http://dx.doi.org/10.1016/S0301-4215(01)00057-X>.

Chaurey, A. and Kandpal, T.C. (2010) ‘Assessment and evaluation of PV based decentralized rural electrification: an overview’, Renewable and Sustainable Energy Reviews 14(8): 2266–78 <http://dx.doi.org/10.1016/j.rser.2010.04.005>.

Craine, S., Mills, E. and Guay, J. (2014) Clean Energy Services For All: Financing Universal Electrification, San Francisco: Sierra Club.

Cust, J., Singh, A. and Neuhoff, K. (2012) Rural Electrification in India: Economic and Institutional Aspects of Renewables, Cambridge, UK: University of Cambridge.

ESMAP (2000) Reducing the Cost of Grid Extension for Rural Electrification, ESMAP Report 227/00, Washington, DC: World Bank.

International Energy Agency (IEA) (2011) World Energy Outlook: Executive Summary, Paris: OECD/IEA.

Kumar, K. and Winiecki, J. (2014) Access to Energy via Digital Finance: Overview of Models and Prospects for Innovation, Washington, DC: CGAP.

Legros, G., Havet, I., Bruce, N. and Bonjour, S. (2009) The Energy Access Situation in Developing Countries: A Review Focusing on the Least Developed Countries and Sub-Saharan Africa, New York: United Nations Development Programme (UNDP); Geneva: World Health Organization.

Levaï, D., Rippey, P. and Ryhne, E. (2011) Microfinance and Energy Poverty: Findings from the Energy Links Project. Final Report to AED (now FHI 360) and USAID under the FIELD Project, Boston, MA: Center for Financial Inclusion at ACCION International.

Microfinanza (2013) Country market study on microfinance and energy, unpublished material, Vicenza, Italy: Microfinanza.

Morris, E., Winiecki, J., Chowdhary, S. and Cortiglia, K. (2007) Using Microfinance to Expand Access to Energy Services: Summary of Findings, Washington, DC: The SEEP Network.

Msimanga, B. and Sebitosi, A.B. (2014) ‘South Africa’s non-policy driven options for renewable energy development’, Renewable Energy 69: 420–7 <http://dx.doi.org/10.1016/j.renene.2014.03.041>.

Pepermans, G., Driesen, J., Haeseldonckx, D., D’haeseleer, W. and Belmans, R. (2005) ‘Distributed generation: definition, benefits and issues’, Energy Policy 33(6): 787–98 <http://dx.doi.org/10.1016/j.enpol.2003.10.004>.

Pode, R. (2013) ‘Financing LED solar home systems in developing countries’, Renewable and Sustainable Energy Reviews 25: 596–629 <http://dx.doi.org/10.1016/j.rser.2013.04.004>.

Pope, C. (2012) ‘Solar power off the grid: energy access for world’s poor’, Yale Environment 360 [online] <http://e360.yale.edu/feature/solar_power_off_the_grid_energy_access_for_worlds_poor/2480/> [accessed 21 July 2015].

Rebane, K. and Braham, B. (2011) ‘Knowledge and adoption of solar home systems in rural Nicaragua’, Energy Policy 39: 3064–75 <http://dx.doi.org/10.1016/j.enpol.2011.02.005>.

Sharif, I. and Mithila, M. (2013) ‘Rural electrification using PV: the success story of Bangladesh’, Energy Procedia 33: 343–54 <http://dx.doi.org/10.1016/j.egypro.2013.05.075>.

Srinivasan, S. (2005) ‘Solar home systems: offering credit and ensuring recovery’, Refocus 6(1): 38–41 <http://dx.doi.org/10.1016/S1471-0846(05)00293-3>.

Srinivasan, S. (2007) ‘Microfinance for renewable energy: financing the former poor’, World Review of Entrepreneurship, Management and Sustainable Development 3(1): 79–89 <http://dx.doi.org/10.1504/WREMSD.2007.012132>.

Truran, G. (2004) ‘The poor man’s fuel: the continued use of paraffin for domestic energy requirements in low income households’, 8th World Congress on Environmental Health. Durban, South Africa, p. 11.

Winiecki, J., Morris, E. and Armacost, N. (2009) End-user Finance: A Guide for Sustainable Energy Enterprises and NGOs, London: Ashden Awards for Sustainable Energy.

World Bank (2008a) Costing Power Infrastructure Investment Needs in Southern and Eastern Africa, Econ Pöyry Report, Washington, DC: World Bank.

World Bank (2008b) Designing Sustainable Off-Grid Rural Electrification Projects: Principles and Practices, Washington, DC: Energy and Mining Sector Board.

Abdullah, S. and Markandyab, A. (2009) Rural Electrification Programmes in Kenya: Policy Conclusion from a Valuation Study, Bath, UK: University of Bath <http://dx.doi.org/10.1016/j.esd.2011.10.007>.

Advisory Group on Energy and Climate Change (AGECC) (2010) Energy for a Sustainable Future: Report and Recommendations, New York: Secretary-General’s Advisory Group on Energy and Climate Change.

Ahlborg, H. and Hammar, L. (2014) ‘Drivers and barriers to rural electrification in Tanzania and Mozambique: grid-extension, off-grid, and renewable energy technologies’, Renewable Energy 61: 117–24 <http://dx.doi.org/10.1016/j.renene.2012.09.057>.

Alliance for Rural Electrification (ARE) (2009) A Green Light for Renewable Energy in Developing Countries, Brussels, Belgium: ARE.

Asian Development Bank (ADB) (2005) Republic of the Fiji Islands: Rural Electrification Project, Technical Assistance Consultant’s Report, Manila, Philippines: ADB.

Beck, F. and Martinot, E. (2004) ‘Renewable energy policies and barriers’, in C.J. Cleveland (ed.), Encyclopedia of Energy, pp. 365–83, New York: Elsevier.

Chakrabarti, S. and Chakrabarti, S. (2002) ‘Rural electrification programme with solar energy in remote region: a case study in an island’, Energy Policy 30(1): 33–42 <http://dx.doi.org/10.1016/S0301-4215(01)00057-X>.

Chaurey, A. and Kandpal, T.C. (2010) ‘Assessment and evaluation of PV based decentralized rural electrification: an overview’, Renewable and Sustainable Energy Reviews 14(8): 2266–78 <http://dx.doi.org/10.1016/j.rser.2010.04.005>.

Craine, S., Mills, E. and Guay, J. (2014) Clean Energy Services For All: Financing Universal Electrification, San Francisco: Sierra Club.

Cust, J., Singh, A. and Neuhoff, K. (2012) Rural Electrification in India: Economic and Institutional Aspects of Renewables, Cambridge, UK: University of Cambridge.

ESMAP (2000) Reducing the Cost of Grid Extension for Rural Electrification, ESMAP Report 227/00, Washington, DC: World Bank.

International Energy Agency (IEA) (2011) World Energy Outlook: Executive Summary, Paris: OECD/IEA.

Kumar, K. and Winiecki, J. (2014) Access to Energy via Digital Finance: Overview of Models and Prospects for Innovation, Washington, DC: CGAP.

Legros, G., Havet, I., Bruce, N. and Bonjour, S. (2009) The Energy Access Situation in Developing Countries: A Review Focusing on the Least Developed Countries and Sub-Saharan Africa, New York: United Nations Development Programme (UNDP); Geneva: World Health Organization.

Levaï, D., Rippey, P. and Ryhne, E. (2011) Microfinance and Energy Poverty: Findings from the Energy Links Project. Final Report to AED (now FHI 360) and USAID under the FIELD Project, Boston, MA: Center for Financial Inclusion at ACCION International.

Microfinanza (2013) Country market study on microfinance and energy, unpublished material, Vicenza, Italy: Microfinanza.

Morris, E., Winiecki, J., Chowdhary, S. and Cortiglia, K. (2007) Using Microfinance to Expand Access to Energy Services: Summary of Findings, Washington, DC: The SEEP Network.

Msimanga, B. and Sebitosi, A.B. (2014) ‘South Africa’s non-policy driven options for renewable energy development’, Renewable Energy 69: 420–7 <http://dx.doi.org/10.1016/j.renene.2014.03.041>.

Pepermans, G., Driesen, J., Haeseldonckx, D., D’haeseleer, W. and Belmans, R. (2005) ‘Distributed generation: definition, benefits and issues’, Energy Policy 33(6): 787–98 <http://dx.doi.org/10.1016/j.enpol.2003.10.004>.

Pode, R. (2013) ‘Financing LED solar home systems in developing countries’, Renewable and Sustainable Energy Reviews 25: 596–629 <http://dx.doi.org/10.1016/j.rser.2013.04.004>.

Pope, C. (2012) ‘Solar power off the grid: energy access for world’s poor’, Yale Environment 360 [online] <http://e360.yale.edu/feature/solar_power_off_the_grid_energy_access_for_worlds_poor/2480/> [accessed 21 July 2015].

Rebane, K. and Braham, B. (2011) ‘Knowledge and adoption of solar home systems in rural Nicaragua’, Energy Policy 39: 3064–75 <http://dx.doi.org/10.1016/j.enpol.2011.02.005>.

Sharif, I. and Mithila, M. (2013) ‘Rural electrification using PV: the success story of Bangladesh’, Energy Procedia 33: 343–54 <http://dx.doi.org/10.1016/j.egypro.2013.05.075>.

Srinivasan, S. (2005) ‘Solar home systems: offering credit and ensuring recovery’, Refocus 6(1): 38–41 <http://dx.doi.org/10.1016/S1471-0846(05)00293-3>.

Srinivasan, S. (2007) ‘Microfinance for renewable energy: financing the former poor’, World Review of Entrepreneurship, Management and Sustainable Development 3(1): 79–89 <http://dx.doi.org/10.1504/WREMSD.2007.012132>.

Truran, G. (2004) ‘The poor man’s fuel: the continued use of paraffin for domestic energy requirements in low income households’, 8th World Congress on Environmental Health. Durban, South Africa, p. 11.

Winiecki, J., Morris, E. and Armacost, N. (2009) End-user Finance: A Guide for Sustainable Energy Enterprises and NGOs, London: Ashden Awards for Sustainable Energy.

World Bank (2008a) Costing Power Infrastructure Investment Needs in Southern and Eastern Africa, Econ Pöyry Report, Washington, DC: World Bank.

World Bank (2008b) Designing Sustainable Off-Grid Rural Electrification Projects: Principles and Practices, Washington, DC: Energy and Mining Sector Board.