The document compares business models for off-grid energy systems in India, Kenya, and the United States. In India, models include a micro-utility providing solar power to 50 households and an anchor business supplying power to telecom sites and surrounding communities. In Kenya, M-KOPA sells pay-as-you-go solar home systems financed through mobile payments. In the US, rural electrification in the early 20th century was achieved through electricity cooperatives established with initial loans from the Rural Electrification Administration.

1. Business Models for Off-grid
Systems
Comparative Study

2. India
1. Micro-utility Model
● Solar-powered micro-grid system sized 120-800 Wp to serve 50 households in rural areas
● Mera Gao Power (MGP) provides two LED light bulbs and a phone charger for each household and is
responsible to maintain microgrid.
● Low service fee: each household has to pay USD $0.5 collected weekly by joint liability groups set by the
MGP.
● 2.5 to 3.5 years of payback period for each installation.
● 30% of capital came from grants (international donors).
2. Anchor-Business-Customer Model
● OMC Power provides power to telecom base stations in rural areas by using renewables (solar, wind, and
biogas) to replace diesel. While serving telecommunication companies, the company also serves communities
surrounding the stations. There are 70 power plants with a total installed capacity of 3 MW.
● The company sells the electricity to telecom companies with fixed per kWh price and offers power to
households at low prices depending on customer needs and economic capability.
● Type of services: pre-charged products (such as lanterns for one day use or a powerbox to power several
appliances & mobile phones) and direct wire connection to houses.

3. Kenya
● M-KOPA sells a solar-powered system that can charge a mobile phone and a package provided by the company that
includes two lights, a torch, a radio. The company has served over 600,000 houses.
● The system has a control unit which controls the use of power from the solar system. A platform called M-Kopanet is
communicating with this control unit to allow the use of power if customers have paid the power credits through their
mobile phones.
● The customers pay a down payment of 3,500 Kenyan shillings and daily installments of Ks50, which can be paid
daily or in advance until the total purchase price is paid off within the maximum payment period. The electricity tariffs
are progressive, meaning more power is used, more expensive the unit cost of electricity.
● The company is offering an M-Kopa-powered television to boost the business.

4. The United States
● The use of cooperatives to electrify rural areas. The cooperatives were initiated by local rural communities that
mainly worked as farmers. The cooperative charged $5 as a membership fee.
● The Rural Electrification Administration (REA) established in 1935 provided long term (maximum 35 years) loans
with a low-interest rate at 2% to electricity cooperatives. The federal loans were only available as an initial
investment to build the infrastructure before cooperatives became fully owned, operated, and funded by local
communities.
● A power cooperative is a type of power utility owned by consumers of electricity. A cooperative serves one area as
an unregulated monopoly with no governmental supervision and has the authority to set the electricity tariffs. It
operates as a not-for-profit entity (exempt from taxes) and profits must be used to reduce electricity tariffs, reinvested
for infrastructure, or distributed as capital credits/dividends to customer-owners.