Page - 158 - in Clean Water Using Solar and Wind - Outside the Power Grid

158 Clean Water Using Solar and Wind: Outside the Power Grid Pay-as-you-go (PAYG) models are becoming common. The key factor is a finance model that matches affordable pricing for the end user with an adequate return on investment for the supplier. For example, PAYG solar companies seek to provide energy services at a price that can compete with consumers’ current spending on kerosene, candles, batteries and other low-quality energy services. This of course includes the water system equipment and the potential improvement that it provides, for example by increasing agriculture output using irrigation. Two methods for PAYG are typically offered: • The end user pays a fee for the possibility of owning the system, but never actually owns it; • The end user will own the system after paying off the system cost. They will make regular payments on a daily, weekly or monthly basis. Investment in PAYG solar companies has increased from practically zero in 2012 to 223 million USD in 2016 (REN21, 2017). 12.4 FURTHER READING Hoffman (2017b) presents an insightful analysis and description of the role of subsidies, very much talking from his own experience. The rest of the chapter is an informative description of solar PV financing from a US perspective. Varadi et  al. (2018), Chapter 6, is a valuable source of information for anybody who wishes to know more about financing renewable energy in Africa and the Middle East. Huld et  al. (2014) have calculated levelised cost of energy (LCOE) for PV systems in Africa and the Middle East, both grid-connected and off-grid PV systems. IRENA (2017c) presents a lot of facts concerning jobs and renewable energy. IEA (2016b) discusses the system value of solar PV and wind. The report emphasises the importance to maximise overall value to the power and wider energy system rather than minimising the generation cost of wind and solar power in isolation. Downloaded from https://iwaponline.com/ebooks/book-pdf/520710/wio9781780409443.pdf by IWA Publishing user