This briefing paper explores how to design subsidies, as a form of public finance, for distributed renewable electricity and clean cooking, and how to deliver them effectively to accelerate universal access to energy. The paper draws on country examples of subsidy schemes and identifies the characteristics of effective subsidies that will catalyse a sustainable energy market delivering energy access for the long term. The paper aims to provide a discussion point for policymakers, particularly for multilateral development banks (MDBs), donors and governments, who are increasingly financing subsidy schemes.