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Over 100 million people have gained access to electricity thanks to the PAYGo technology and business model that makes solar energy more affordable. Reaching the next 100 million will require sharper tools, stronger companies, and deeper investor engagement.
In this blog, we explore how the new PAYGo PERFORM KPIs and benchmarks can turn complex data into actionable intelligence, guiding the sector toward stronger companies and brighter futures for millions of consumers. The PAYGo PERFORM v3 Beta release promotes two simple, high-impact KPIs to measure company performance and customer outcomes, shown here with the results from 17 PAYGo country firms[1], representing seven major PAYGo companies:
The average Repayment Rate at 2x contract term for the dataset is 72%.
The average Customer Ownership Rate for the dataset is 78%.
These two KPIs capture both financial performance and social impact, allowing companies to optimize payment plans, track customer success, and build sustainable, bankable businesses. For investors, standardized metrics provide confidence in cashflow forecasts, portfolio valuation, and growth potential.
Our analysis found that the average Repayment Rate at 2x contract term is 72%. In other words, consumers repay $72 of every $100 financed. While there is significant variation across the market (some firms achieve rates above 90% and others below 60%), companies are clearly getting better at recovering payments. Compared to the 2021 to 2023 averages, 2024 data indicate that the sector’s transition to PAYGo 2.0 is gaining momentum as companies adapt their culture, operations, and customer engagement to improve repayments and long-term customer success. The case studies and data from PAYGo Lab demonstrates that rapid progress is possible when businesses put customer success at the centre of their model.
Note: Data is for 17 PAYGo country firms. Looking at the metric at 2x the contract term is a good proxy for the total amount that will be repaid, since few customers pay much beyond double the duration of the contract. The % of contract term method allows PAYGo contracts with different lengths to be aggregated and compared.
The Repayment Rate is higher in West Africa (77%) compared to East Africa (69%), reflecting both company practices and country contexts, such as social behaviours relating to credit. The results also vary by firm size, with larger firms typically performing better than smaller ones, and by product type and cost.
There is a strong correlation between the downpayment percentage and the Repayment Rate that will be achieved. Cohorts where the customer downpayment is greater than 10% display a better repayment rate through the duration of the contract. The lowest repayment performance is observed for cohorts with a downpayment of less than 5%.
Shorter contract terms show a higher Repayment Rate at 2x term, with contracts <1 year a few percentage points higher than 1-2 years. Whilst longer contracts allow for lower payment instalments, the heightened risk of problems or payment fatigue results in less money being recovered.
Repayment Rate is a powerful tool for companies to fine tune consumer finance plans and for investors to verify the assumptions in the business plan.
Repayment Rate at 90 days is a valuable early signal of sales quality. It helps companies monitor operations, spot potential issues, and assess the impact of new approaches. Across the 17 country firms, results vary widely: top performers consistently achieve close to 100%, while others fall below 60%. The decline in the median firm’s rate in Q3 2024 is a warning sign – suggesting lower-than-expected revenues from that sales cohort and highlighting areas that may need corrective action.
The Repayment Rate at 90 days KPI is also a good predictor of long-term outcomes. Customers who make substantial repayments in the first 90 days are far more likely to pay faster and complete their contracts, while those who lag early tend to remain slow payers and face higher risks of default.
Strengthening this metric improves confidence in cashflow forecasting and portfolio valuation. That means investing in more robust data collection, better software, and adherence to standardized industry methods, alongside larger sample sizes. The PAYGo PERFORM v3 Beta establishes a clear method for calculating this KPI, and relates it to alternative approaches with varying levels of complexity and precision. This standardization is a key step toward greater transparency and investor confidence.
In 2024, the Customer Ownership Rate stood at 78%—meaning nearly four out of five customers who reached twice their contract term had fully completed payments and gained full ownership of their system.
This KPI measures the share of customers who successfully complete their payment plans and unlock free, ongoing use of their product. Beyond repayment, it provides insight into social impact, product–market fit, business model efficiency, and opportunities to extend customer lifetime value at a lower cost base.
It also serves as a practical baseline for setting targets and tracking progress over time. Each company and their partners should define the level of impact it aims to achieve and the pace at which it wants to raise ownership outcomes.
Whilst challenges clearly remain, the PAYGo model is showing real signs of maturity. Leading companies are strengthening unit economics and delivering returns for investors. Data from the PAYGo PERFORM Monitor reveals that a handful of country-level firms are already profitable, with positive EBT margins (cashflow) and healthy cash flow – though the median firm is still operating at a loss.
The trends are encouraging: contribution margins have climbed steeply and consistently, and the Cost of Goods Sold ratio has dropped by more than half between 2021 and 2024. However, rising financial expense ratios warrant attention, and more cautious provisioning for potential credit losses remains essential.
Companies and investors should adopt the PAYGo v3 KPIs to achieve better consumer outcomes and business performance.
For companies not yet using these KPIs and methods, this is a prime opportunity to transform how you analyse, manage, and grow your operations. For those already using them, our shared goal is to achieve greater standardization with clearer definitions and methodologies that lead to sharper benchmarks and more trust.
Fund managers can accelerate progress by embedding PAYGo PERFORM KPIs and methods into investment agreements (detailed guidance will follow later this year), and by supporting companies to build stronger operations and credit cultures.
Our ambition is to bring every company onto a shared, accessible data platform – one powered by reliable source data and near real-time insights. With a streamlined, industry-wide data infrastructure we can unlock high-quality results, meaningful benchmarks, and actionable intelligence. This will strengthen everything from company analysis and digital monitoring, reporting and verification, to customer scoring and company credit ratings. This lays the groundwork for financial innovation – from data-backed lending to warehouse securitisations and green bonds.
We’re excited to work with companies, fund managers, and software and data providers to raise transparency and strengthen trust across the sector. By working together, we can reach the next 100 million people faster and with more lasting impact.
[1] A PAYGo country firm is a company’s in-country operational entity that provides PAYGo solar services. It is the unit of measurement used in the PAYGo PERFORM dataset.
Acknowledgement: Thanks to the African Development Bank, British International Investment, Cygnum Capital, and IFC for the funding support to the PAYGo PERFORM Monitor.
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