#36 Mobisol and the Promise—and Limits—of Pay-As-You-Go Solar

DescriptionWhat does it take to bring reliable electricity to rural communities that the grid may never reach?In this episode, we explore the rise, impact, and hard-earned lessons of Mobisol, a pioneering off-grid solar company that helped shape the pay-as-you-go (PAYG) energy model in East Africa. Founded in Germany and scaled across Tanzania, Rwanda, and Kenya, Mobisol provided solar home systems that enabled households and small businesses to replace kerosene with clean, reliable power—often for the first time.We examine Mobisol’s innovative rent-to-own financing model, its focus on higher-capacity solar systems for productive use, and the significant social and environmental benefits it delivered. The episode also takes a candid look at the challenges Mobisol faced as it scaled: customer credit risk, operational complexity, and the realities of financing energy access at the base of the pyramid. Finally, we discuss Mobisol’s 2019 acquisition by ENGIE and what its integration into a global energy company reveals about the future of off-grid solar and public–private collaboration.This episode offers valuable insights for entrepreneurs, investors, and policymakers seeking to understand both the transformative potential—and the structural constraints—of market-based solutions to energy poverty.Key wordsMobisol, Off-Grid Solar, Pay-As-You-Go Energy, Energy Access, East Africa, Solar Home Systems, Energy Poverty, Social Enterprise, Impact Investing, Renewable Energy, Climate and Development, ENGIE Energy Access, Sustainable Electrification, Last-Mile Innovation