Across the world, solar home systems are an effective standalone power source for off-grid homes and businesses. However, until now, customers have typically had to buy their own systems through hire-purchase arrangements. The deposit and monthly payments involved make them unaffordable to the poorest, most remote communities who stand to benefit the most from energy access.

And once these systems have been paid for, responsibility for keeping them running lies with the customer. Many don’t have the means to do so. This is a key reason why an estimated 75% of solar home systems sold across the Global South are in disrepair, causing significant financial and environmental costs.

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An innovative energy access solution

REAL, a not-for-profit organisation, is driving a systemic shift through its energy-as-a-service model. Under this approach, customers do not need to buy a solar home system, or take on debt to finance it. Instead, they gain first-time access to power by paying a small monthly fee, more like the way people in the Global North access utilities such as electricity, gas, and water.

Its typical operational model combines an asset company, that owns the equipment, with a local private operator trained by REAL, responsible for installation, customer service, and maintenance. The specific partners involved will vary from country to country.

Separating asset ownership from operations is both innovative and practical. One reason is that it allows different types of funders to invest in different parts of the process. Governments are also more likely to participate when assets are independently secured. And the model ensures operators can be replaced if they exit or fail to deliver adequate service.

The result? More people benefiting from modern lighting, household appliances, internet access, and devices that support income generation.

REAL’s early work has demonstrated that this approach can succeed across a range of countries and contexts, gaining support and recognition from governments, global associations, and the World Bank. More than 660 million people worldwide still lack access to electricity, 85% of them in sub-Saharan African. REAL has designed and implemented a scalable model with global relevance for universal energy access.

Affordable, high-quality service with long-term impact

REAL has piloted its model in Sierra Leone, Malawi, and Senegal. In remote off-grid communities, the impact of solar home systems includes longer opening hours for small businesses, more reliable energy for essential services such as clinics and hospitals, and reduced reliance on dangerous kerosene lamps, lead-acid batteries, and fossil fuel-based lighting. Increased access to local phone charging has also improved access to financial services.

REAL designs its programmes with a long-term perspective. A strong focus on customer service, repair, and maintenance is central to the model. Its financial planning covers repair and replacement costs over ten years or more, far longer than the two or three year warranties normally offered to solar home system customers.

A key feature is its ‘village-by-village’ approach, which enables entire communities to be electrified within months through bulk purchasing and installation. Once systems are installed, households pay a modest monthly fee that 80% or more of people in a community can afford. The process begins by demonstrating the value of affordable clean energy, followed by securing sign-ups and installing hundreds of systems within days.

Crucially, the service-based model supports long-term system performance through extended warranties, improved hardware such as better batteries and rat-resistant cables, and ongoing community-based customer support, maintenance, repair, and end-of-life product management.

Local engagement and operational model

REAL Programme Catalyst works closely with local private operators, community leaders, and organisations to design projects that can scale into profitable rural utilities serving rural customers. The programme recruits community representatives, prioritising women for these roles.

REAL gives catalytic support by developing and implementing programmes that fully demonstrate the model at a targeted regional level, while mobilising governments and funding partners around a national scaling vision. It establishes programme structures designed for scalability, laying the groundwork for expansion.

REAL’s approach needs a capital subsidy for hardware but is expected to reach operational sustainability at around 25,000 systems per country. The first connections were delivered in 2023, and the programme has since grown rapidly. In Malawi, customers save an average of 12% on their monthly energy spend, and 97% of surveyed customers report satisfaction with the service.

Sierra Leone has expressed interest in scaling the model to connect 400,000 rural households, while other African governments are in discussion with REAL. The organisation has also been invited to share its expertise with the World Bank and the Global Off Grid Lighting Association. It aims to catalyse programmes in 10 countries by 2030.

REAL Programme Catalyst stands out for its ability to rapidly electrify entire communities, delivering a durable solution that is affordable for most, and in many cases all households and businesses.