Making Solar Affordable Is Becoming the Real Competition in Kenya

Pay-as-you-go financing is emerging as the next competitive edge in Kenya’s solar market as manufacturers look beyond panel technology and battery capacity to win customers. Rather than relying on outright sales, companies are introducing instalment payment models that lower the upfront cost of owning a solar system, making renewable energy more accessible to households and small businesses while opening new opportunities for distributors.

The approach is gaining traction as electricity costs continue to rise and demand grows for dependable power in homes, shops and rural communities that either lack reliable grid connections or want an alternative source of energy.

Global clean energy company Bluetti is among the latest manufacturers to anchor its Kenya expansion on pay-as-you-go (PAYG) financing, allowing customers to spread payments over time instead of making a single large purchase.

The company is also redesigning how it works with local distributors by providing financing, technology support and risk-sharing arrangements to help them serve markets that have traditionally been difficult to reach.

“We are using pay-as-you-go products because they are easier to sell, especially in areas far from urban centres. We can support distributors through technology, financial support and risk-sharing depending on their situation,” said Bluetti Kenya Business Manager Barry Yang.

The strategy reflects a broader reality across Kenya’s solar market. While the price of solar equipment has fallen over the past decade, paying the full amount upfront remains a barrier for many households and micro-businesses.

Entrepreneurship and business management expert Professor Abel Meru argues that financing is now becoming the main point of competition.

“The market is ready. People are already using their mobile phones to conduct business. Once affordable financing is available, solar adoption could happen much faster than many people imagine,” he said.

Bluetti estimates that about 600 million people across Africa still lack access to electricity, making off-grid solar one of the continent’s largest clean energy opportunities.

The company sees Kenya as a particularly attractive market because of its strong demand for reliable electricity and widespread adoption of digital payments.

Its PAYG model was first introduced in Nigeria, where company executives say flexible repayment plans improved customer uptake by removing one of the biggest barriers to purchasing solar systems.

Those lessons are now shaping its Kenyan strategy as competition for new customers intensifies.

Research and Markets estimates the Kenya renewable energy mini-grids market is worth about $1.2 billion (approximately Sh155 billion), with off-grid solar and hybrid systems accounting for a significant share of investment in rural electrification.

Kenya’s mature mobile money ecosystem gives solar companies an advantage that many other markets are still developing.

Customers can make regular digital instalments without needing conventional bank loans, allowing families and small businesses to access electricity while paying for their systems over time.

That combination of digital finance and renewable energy has created conditions where financing models can scale alongside growing demand for clean power.

Kenya already has a well-established PAYG solar market, but the competitive landscape is evolving.

Manufacturers entering the country are no longer focusing only on selling equipment through distributors. They are also helping finance inventory, sharing commercial risks and providing technology that supports repayment and customer management.

That places financing alongside product performance as a deciding factor for distributors choosing manufacturing partners and for consumers deciding which solar provider best fits their budgets.

Flexible financing could widen access to renewable energy well beyond households that can afford to pay upfront.

If more manufacturers adopt PAYG models, rural communities, small businesses and informal enterprises may find it easier to invest in reliable electricity, supporting both economic activity and cleaner energy use.

For Kenya’s solar industry, the contest is no longer defined solely by who builds the most efficient panels or batteries. It is also about who can make those technologies affordable enough for more people to own.

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