Pay-As-You-Go Solar Energy
for Emerging Markets
Fiona Mati
Angaza Design Inc.
East African Project Manager
fionam@angazadesign.com
Household Energy Expenditures
KEROSENE LIGHT:
• $1 – 2 per week on kerosene fuel
~ $75 / year
• ~50 weeks / year
MOBILE PHONES:
• $0.25 per charge
~ $25 / year
• ~8 charges per month
= ~$100 / year
• $17 Billion African annual fuel-based lighting market +
$7 Billion African annual mobile charging market
SoLite3 – Angaza’s Pay-As-You-Go
Solar Lamp
High Quality: Made with
strong materials and has a
long-lasting battery
Affordable:
Easy Payments:
Customers can
using Mobile
make microMoney
payments spread
out over time
Cost Competitive compared
with alternatives such as
kerosene
Integrated PAYG Technology Ecosystem
Revenue ($)
Angaza Energy Hub –
PAYG Management System
Angaza’s Mobile
Money Account
•
•
•
Send $
•
Customer-Specific
Usage and Diagnostic
Data
Receives mobile money payment
Automatically initiates phone call to the
customer’s phone
Transfers payment data embedded in
audible tones to the unit
Receives and stores data from the unit to
unlock a proportional amount of energy
output
Voice Call
Audio-based data transfer
Advantages of Angaza’s Pay-As-YouGo Solar
• Low Cost ($2 to embed)
• Fits customers’ cashflow
• Recurring Revenue
• Bidirection communication: Usage
and diagnostic data is sent back to
Angaza
Sales and Distribution
B2B
Agent Sales
Sell Angazabranded products
through local
entrepreneur
networks or SME
retail locations
DISTRIBUTION
PARTNERS
Project-Based Sales
PAYG Licensing
Sell Angazabranded PAYG
products through
focused projects
(e.g., schools and
micro-enterprises)
License into thirdparty products and
sell through larger,
established,
branded channels
FUTURE: License
PAYG into other
technologies
• Clean water
kiosks
• Grid Meters
Traction: Revenue-Generating
• >1,500 PAYG units sold
• >$50,000 in upfront
product revenue realized
Sums Raised to Date:
• Currently raising $750,000 in
addition to $525,000 already
raised
•Awarded REEEP Grant: $180,000
•Tech Awards Laureate: $75,000
• Millennial Impact Challenge:
$10,000
Milestones:
• Expand Kenyan office
• Field local director
• Add 6 new distribution partners
• Grow Sales
• Lower cost of goods to increase
volume
• Drive down cost of distribution
partner acquisition
• Additional Revenue Sources
• License embedded payment hardware
•Expand data acquisition and
monetization
Angaza Team
Lesley Marincola
Founder, CEO
Angaza Advisors
Mbwana Alliy
Founder & Managing Partner:
Savannah Fund
Worked on first 3 generations of
Amazon Kindle
Stanford: B.S./M.S. Mech. Engr.
MBA: Stanford Graduate School of
Business
Bryan Silverthorn
Niki Armacost
CTO
PhD: University of TX (Austin) in CS
Signal processing and firmware
Managing Director & Co-founder:
Arc Finance
15+ years experience in global
development
Victoria Arch
Himanshu Choksi
Director of Strategy
Managing Director: Pacifica Fund
(Venture Capital & Private Equity)
PhD: Biology, UCLA
Extensive international field research
10+ years entrepreneurial, managerial
consulting experience
Fiona Mati
Greg Beattie
E. African Project Manager
Angaza Attorney: MBV Law LLP
Successful history in introducing new
products to East African market
Corporate and Technology Law,
Specialization in startups
Fiona Mati
East Africa Project Manager
fionam@angazadesign.com
www.angazadesign.com
Q&A slides
Proprietary Technology
Audio-based Data Transfer: Transmission of information
through discrete frequency changes in audible tones
High-frequency audible tones are
played through the speaker on the
customer’s phone
The tones are received by a
microphone in the unit and decoded
by an embedded microprocessor
The unit is unlocked and enabled for
energy output proportional to what
the customer has pre-paid
Usage and diagnostic data encoded in
unit is sent back to Angaza through
speaker embedded in unit
Very low cost – adds only ~$2 to unit
Optimized for small-scale energy products that comprise the market majority
PAYG Two-Way Communication: Data Collection
Single Customer Profile:
(Stephano)
Additional revenue stream:
- Usage data can be sold to government or
private research organizations (e.g., World
Bank) interested in Base-of-the-Pyramid
energy consumption patterns
Mobile
charging
Usage
- Per-unit data can be used to validate
carbon credit programs
Light Usage
Light (hrs)
Remote customer support:
- Direct link to customers’ cell phones
- Can collect and diagnose unit
performance metrics such as solar panel
efficiency and battery life, and
communicate with customer via SMS
- Provides distributors with real-time data to
support customer service
4.0
3.0
2.0
1.0
0.0
Avg Light Used Avg Cell phone
per day (h) charges per week
Angaza collects usage and
diagnostic data from each unit
Pay-As-You-Go Competitive Landscape
Companies
Pay-As-You-Go Solution
Azuri IndiGo
External keypad locks/unlocks
systems
Simpa Networks
Progressive Purchase
Payment is mediated by
physical scratch-card networks
Angaza Advantage
Angaza PAYG technology is
completely embedded within
product for lower cost, superior
tamper-proofing
Integration with mobile money
streamlines payment system and
provides payment flexibility
Two-way communication via
cellular network allows remote
data collection from each unit
Angaza PAYG adds only ~$2/unit
(vs. ~$17/unit for GSM module GSMA
2012) - Optimized for 1-10W
systems
M-KOPA Solar
Embedded GSM module in
each unit regulates
lock/unlock
Shorter payback time decreases
financing risk
Angaza PAYG is not tied to any
specific mobile carrier, allowing
easy scaling between markets
Other PAYG Applications
Angaza’s Pay-As-You-Go technology can be embedded in a wide variety of products to
provide pay-per-use functionality, and we are actively pursuing partners to facilitate this.
Village Water Kiosks
Villagers can pay per liter of
water from village-level
water kiosks with Angaza’s
Pay-As-You-Go. Flow meter
regulates output and shuts
off flow when pre-paid
quantity is reached.
Clean Cookstoves
with electrical component
New cookstoves which generate
electricity from heat (e.g. BioLite)
can be regulated with Angaza’s
Pay-As-You-Go
Grid Meters
Current meters in E. Africa use
a keypad-based payment
system and cannot send data
back. Angaza’s Pay-As-You-Go
can be cheaply embedded
within the meter to provide
two-way communication.
Intellectual Property Strategy
U.S. Provisional
Patent Filed
Dec 2011
Full U.S. Patent
Application and
International PCT
Application Filed
Convert PCT to
country-specific
patents
Dec 2012
May 2014
What does it cover?
• Audio-based data transfer applied to Pay-As-You-Go
model
• Ecosystem involved with Pay-As-You-Go functionality
including embedded hardware, embedded firmware, and
cloud-based data management system with details on how
these parts interact
• Two-way cellular communication with opportunities for
data collection
• Is not just restricted to solar products, but rather
highlights transferability of technology to many different
types of products (water kiosks, grid meters, etc)
Unit Economics
Angaza Economic Outcomes:
Licensing Assumptions:
- Angaza takes a 15% transaction fee
on all energy payments
channeled through our platform
-Chart based on expected payment
schedule for 5-watt product with
$30 upfront fee and $150 payoff
price
- Angaza COGS includes airtime and
mobile money fees
=
~$17 in profit per unit sold
~75% profit margin
Why Angaza?
• Proprietary PAYG Technology
• Full U.S. Patent and PCT Applications Filed
• SoLite-2 with PAYG sold in Tanzania with 100%
payback to date
• High-Volume production initiated – 2000 units
• Widely applicable for many different types of
products (e.g., clean water kiosks)
• Data collection opens avenues for targeted
marketing and unprecedented customer support
and retention
• Revenue-Generating Stage
• Established manufacturing, Quality-tested
products, PAYG sales in countries to date
• Effective Partnerships
• Vodacom Tanzania (MPESA TZ)
• MIT/Sloan, Institute for Poverty Action (IPA)
• Distributor relationships incl.ToughStuff
International, Barefoot Power, Zamsolar,
SunnyMoney etc.
• Strong Team
• Stanford/UT Austin/UCLA educated (2 PhDs, 1
Masters in Engineering)
• Extensive experience in our target markets