22 April 2012: Working in collaboration with Simpa Networks, a local Indian company, the Renewable Energy and Energy Efficiency Partnership (REEEP) is helping to accelerate the expansion of “Progressive Purchase,” a pay-as-you-go pricing model that enables users to access solar energy in India.

As traditional sources of energy become more expensive, REEEP explains that Simpa Networks invented, built and tested the pay-as-you-go pricing model “Progressive Purchase” which combines solar-power system hardware and mobile phone software that enables users to buy prepaid energy credits to slowly pay of installed energy systems. The model was tested in informal settlements around Bangalore. REEEP has partnered with Simpa Networks to accelerate the expansion of the use of this model to six more towns, in hopes of taking the project nationwide. The project aims, over a 24-month period, to install 1,000 new systems in previously un-electrified households that will deliver 8-10 years of free renewable energy after the system is paid off using the Progressive Purchase system.

In order to achieve this, Simpa Networks is working with SELCO Solar Light to create solar energy systems for homes and small businesses that are equipped with integrated Simpa hardware. To enhance financing for the project, Simpa Networks has signed a Memorandum of Understanding with the International Finance Corporation (IFC) Lighting Asia Initiative to support the management of credit risk. [REEEP Press Release]