Simpa Networks, a technology company is trying to improve the lives of many in the state of Karnataka. The company has brought solar panels to many of the villages, providing even low income families making less than $2 a day. Simpa is targeting customers who have limited to no electricity power that are using kerosene lanterns which can be harmful to their health and safety. They are also targeting customers who have limited incomes who are unable to buy solar products, despite Simpa stating that they have a significant savings within ten years.
The question then is how is Simpa able to provide these $200-$400 products to villagers? The answer is product financing. Instead of paying the full price upfront, customers are able to make a small down payment to receive the solar panel and pre-pay for the energy use. Every payment towards energy also contributes to paying off the panel in full. Once the solar panel is paid off in full the system will unlock and the owners will be able to use the energy for the rest of the product lifetime. This type of product financing is giving way to an ability to provide people with more environmentally friendly products and services helping them to adopt new technologies.
Source (Image and article): The Guardian
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