Our Work
Or search all of the site's content.
Quick Links
Our Work
About Us
GOGLA Members
Results-Based Financing (RBF) has helped make energy access a reality for millions. Yet governments, investors and off-grid solar companies have also encountered implementation challenges, including payment delays and potential market distortions. With RBFs embedded as a core delivery mechanism under Mission 300 and other large-scale access initiatives, it is essential to apply these lessons to improve RBF design and implementation in ways that deliver durable access, resilient markets and sustained investment.
Results-Based Financing (RBF) has become an important approach for accelerating energy access. Programmes supporting the deployment of solar home systems, productive-use equipment, mini-grids and clean cooking solutions have enabled millions of households, farms and enterprises to access clean, affordable energy, often for the first time.
Today, more than 30 national or multi-country off-grid solar RBF programmes are in operation or design, supported by governments, donors and implementing partners. As RBFs will continue to be critical to Mission 300 and other major energy access initiatives, it is increasingly important to examine both their potential and the implications for programme design, implementation and coordination.
GOGLA recently engaged several of our member companies that are actively participating in RBF programmes across multiple markets and technologies. After more than a decade of implementation, these companies have accumulated a significant body of practical experience.
Drawing on their experience, our previous industry consultations, and ongoing engagement with governments, funders and implementers, GOGLA is consolidating evidence to help inform the next generation of programme design.
Feedback suggests that design choices matter enormously. In some cases, RBF schemes were considered ‘too hot’, with subsidy levels or structures that distort markets, exhaust funds prematurely or undermine long-term sustainability. In others, programmes were deemed ‘too cold’, with rigid rules, delayed payments or misaligned incentives that fail to reach the most underserved customers or place undue risk on companies delivering access.
Conversations with GOGLA member companies, governments, funders and national associations highlighted several recurring challenges across RBF programmes. While programme contexts differ, the examples below illustrate common design and implementation issues observed in multiple markets.
In some programmes, high subsidy levels have driven rapid uptake but exhausted funds before full access targets were reached. In one recent programme, subsidies for solar home systems were set at around 50% of retail price. Uptake was rapid and targets were exceeded early, but funds were depleted before the full potential market was reached. Moreover, rapid scale-up under high subsidy regimes can lead companies to expand operations and staffing ahead of sustainable demand, creating commercial risks when programmes end or funding is exhausted.
Inflexible programme design can restrict participation or limit companies’ ability to respond to changing market conditions. In some programmes, eligibility has been restricted to a defined set of companies or programme rules have limited the ability to adjust pricing or product offerings in response to currency movements, cost changes or evolving demand. These constraints can slow connections, discourage participation from newer or smaller firms and increase financial risk for companies operating in volatile markets.
Many RBF programmes have been structured primarily around PAYGo, lease-to-own or asset ownership models. While these approaches have delivered strong results, they may not always accommodate models such as cash sales, energy-as-a-service, battery rental, micro-asset financing or community-level solutions. As companies experiment with alternative approaches to improve affordability for the poorest households, RBF frameworks should evolve to ensure that different delivery models can participate on a level playing field.
In parallel, some off-grid energy investors are examining how subsidy structures affect market sustainability, investment confidence and the mobilisation of private capital at scale. We are engaging with these efforts to ensure that industry perspectives contribute constructively to these discussions.
GOGLA member companies shared implementation experience and identified practical improvements to subsidy design and delivery, including approaches such as differentiated subsidies, demand-responsive pricing models, the use of multipliers for specific policy objectives and alternative incentive structures. While the industry is not yet at a single consensus view, inputs from our members and other consultations suggest growing alignment around several broad principles.
Very high subsidy levels may accelerate early uptake but can undermine long-term market sustainability. Based on experience shared by companies participating in RBF programmes, subsidies in the range of approximately 20–30% of end-user cost are, in many contexts, sufficient to address affordability constraints, with companies cautioning against higher levels. Lower subsidy levels can allow available funding to reach more customers while reducing the risk of market distortion.
To respond to changing market conditions, some companies have also expressed interest in exploring dynamic pricing approaches, where subsidy levels adjust at predefined intervals based on programme performance (e.g., connection rates relative to targets). The appropriate level and structure of subsidies will vary depending on market maturity, demand potential and programme objectives.
Clear disbursement timelines, regular communications with companies before and during the RBF programme, real-time visibility of remaining subsidy funds and predictable programme rules help reduce operational risk for participating companies and enable responsible planning and investment. Establishing independent verification agents at programme launch, alongside defined service-level expectations for verification and disbursement, can shorten payment cycles and reduce administrative burden.
Some RBF programmes have introduced requirements related to quality-verified (QV) products, warranties or multi-year service obligations to help ensure systems remain functional and customers continue receiving reliable energy access. These approaches reflect growing policy attention to durability and long-term customer outcomes.
Governments and customers expect off-grid energy solutions to deliver reliable service over many years. This expectation is shared by companies and investors seeking long-term customer relationships and sustainable markets. RBF design should therefore consider how RBF qualification criteria and incentives support system quality, after-sales service and long-term access, not only initial deployment.
Some RBF programmes have used payment multipliers or bonus payments to incentivise companies to achieve additional objectives, such as reaching harder-to-serve communities or targeting specific customer segments. These “top-up” payments are applied on top of standard subsidies, which are typically designed to support efficient delivery of baseline access targets.
As the global off-grid solar association, GOGLA is continuing to work with our member companies, governments and partners to inform the next generation of RBF programmes. We are engaging with the World Bank Group and other partners as new guidance and RBF programme designs are developed.
In parallel, GOGLA is facilitating practical dialogue on specific design questions with our members and via the End User Subsidy Lab. Our intention is to constructively contribute to RBF planning initiatives, particularly via our work with the World Bank’s Energy Sector Management Assistance Program (ESMAP) and at the Global Off-Grid Solar Forum and Expo in October 2026.
GOGLA has published targeted Guidance for PAYGo RBFs: Strengthening how we measure and incentivise sustained energy access, a tool that presents a menu of practical options for adopting industry metrics. It explores how repayment and ownership metrics can be used across the RBF lifecycle to strengthen sustainability and long-term access, while managing operational risk. In addition, the next phase of GOGLA’s Keeping the Lights On study will examine how subsidies and RBFs affect affordability in PAYGo markets, including how companies adjust pricing strategies as programmes evolve.
These insights are already informing ongoing discussions with governments, funders and implementers as new RBF programmes are designed and existing ones are refined.
As new RBF programmes are developed, we encourage governments, the World Bank Group, donors and implementing partners to consider the following guiding principles:
GOGLA will continue working with governments, funders, implementers and member companies to help ensure RBF programmes deliver durable energy access, resilient markets and sustained investment.
The GOGLA newsletter is for everyone who wants to keep abreast of the latest developments in the off-grid solar and electrification sector.
