Fortunately, the historic barriers to getting distributed renewable power to scale in poor villages and neighborhoods are rapidly being dismantled by progress in technology, finance, and business models. Getting 1.2 billion people local solar power they can afford is within grasp – if we only think about the problem in a different way. In fact, the world can finish this job by 2020.
The poor already pay for light. They pay for kerosene and candles. And they pay a lot. The poorest fifth of the world pays one-fifth of the world’s lighting bill – but receives only 0.1 percent of the lighting benefits. Over a decade, the average poor family spends $1,800 on energy expenditures. Replacing kerosene with a vastly superior 40 Wp (Watts peak) home solar system would cost only $300 and provide them not only light, but access to cell-phone charging, fans, computers, and even televisions.
Kerosene costs 25 to 30 percent of a family’s income – globally that amounts to $36 billion a year. The poor do not use kerosene because it is cheap – they are kept poor in significant part because they must rely on expensive, dirty kerosene.
And the poor pay in other ways. A room lit by kerosene typically can have concentrations of pollution 10 times safe levels. About 1.5 million people, mostly women, die of this pollution every year, in addition to those who die from burns in fires.
So why do the poor use kerosene? Because they can buy a single day’s worth in a bottle, if that is all they can afford. For the poor, affordability has three dimensions: total cost, up-front price, and payment flexibility. Solar power comes in a panel that will give 10, or even 20, years of light and power – but the poor cannot afford a 10-year investment up front. And many cannot handle conventional finance plans, which require fixed payments regardless of their income that month.