Upya Notes from the Last Mile: Mid-project Energy Catalyst update
By: Upya Technologies
Tags: Solar, Africa, Software, Green Energy, Environment

Givewatts sales agents in action

What happened this year?

In March of last year, we announced our latest off-grid electrification initiative. The project would be in partnership with Givewatts, a Kenyan social enterprise and last-mile distributor, and funded by an Innovate UK Energy Catalyst grant. Upya would undertake a 12-month pilot in coastal Kenya, in order to demonstrate how our technology can reduce the cost of off-grid solar power for bottom-of-the-pyramid households in rural parts of Africa. The initiative would also help address the 7th Sustainable Development Goal (‘affordable, reliable, sustainable and modern electricity for all’) helping households gain access to and progress higher up the energy ladder.

In April, we discussed our methodology for selecting our pilot site, including overcoming socioeconomic, logistical, and cultural barriers. We outlined that our ideal pilot site should have a cohesive and close-knit community, with appropriate topographical and geographical conditions, as well as a willingness to change. We identified sites in Kilifi, on Kenya’s coast, as an ideal area to target. Residents here have an average income of 300–800KES (3–8 USD) per day, enough to consider making the switch to a solar home system. Kilifi is also within reach of both Upya and Givewatts teams, meaning that time and money are saved in not having to transport stock or agents inland.

Latest summary

We are happy to report that despite the coronavirus pandemic sales have been successful. By December, we had reached our initial target of 50 SHS sales, with end-users tracked using our CRM software. While we anticipate a decrease in sales over Christmas and the New Year we are now aiming for a revised total of 90 by the end of March. Notable achievements this year include:

- Our second order of solar home systems purchased and delivered to our Kenya warehouse

- 100% of sales and monthly payments were processed using the Upya web platform and mobile app

- Pricing Structure and sales determined by Share Scheme mechanism, where larger deposits are utilised to fund low down-payment deals for those customers who are closer to the bottom of the pyramid.

- Impact interviews are underway with customers who have been with us longest

- A process to allow roaming customers to make use of the fleet of solar home systems is undergoing early testing

What is the typical end-user demographic?

Below are two examples of end-users benefiting from our software.

‘Grace’: teacher and carer

‘Grace’ signed up to a 10-month payment plan for a small solar home system. She works multiple jobs, including as a teacher at a local primary school and is also a carer. Between ‘Grace’ and her husband, they earn and spend between $1.50 to $3.00 daily, totalling just under $90 per month. Of this, up to 45 cents per day ($14 per month) would have been spent on kerosene, which would have provided only 3 hours’ worth of additional lighting. Kerosene is also a fossil fuel and known to cause rashes, breathing complications and sore eyes. By purchasing a solar home system through the Upya and Givewatts collaboration, ‘Grace’ and her husband are able to extend the amount of artificial light they receive to 12 hours per day. Her solar home system contract cost her a few dollars in deposit and will cost her less than $10 per month for the duration of ten months. Once she has paid off her contract the solar home system will run for free with an expected product lifetime of 5–7 years.

‘Adam’: charcoal dealer

‘Adam’ is a charcoal dealer and the breadwinner of his family. His household contains a large number of men, women and children, with a monthly household income of $45–90 per month. He spends up to $1 per day on kerosene, alongside which he and his household would spend one hour collecting firewood; this typically provides him with four hours of additional light. ‘Adam’ suffers from breathing difficulties, red eyes and the occasional burn as a consequence of his work as a charcoal dealer and kerosene user. ‘Adam’ purchased the solar home system for him and his household to use. He is signed up to a ten-month payment plan, costing him $0.36 per day, which he makes in daily/weekly/monthly instalments. In doing so, ‘Adam’ has extended the amount of artificial light he receives to up to 12 hours per day, during which he can trade for longer to increase his income or help around the household.

Kenya coronavirus update

Kenya is currently experiencing its second wave of the pandemic, having seen 71,000 cases and over 1,300 deaths during the period between March and November. It is difficult to gauge the impact on the Kenyan economy, though it is estimated that the growth of real GDP will be 1.5% in 2020, versus 5.4% growth seen in 2019.

We are pleased to inform that none of our project staff or field agents on-the-ground have suffered any health issues as a result of the global pandemic. While both Upya and Givewatts teams have been challenged in terms of reaching last-mile customers, we have worked within the confines of the coronavirus restrictions to continue making sales. These extend to mandatory mask wearing in public, the banning of large gatherings, meetings and conferences, a state-wide curfew, and a limit to hospitality and religious gatherings. Given the project’s emphasis on mobile money transactions, limited cash transactions reduced the requirements for physical contact between agents and customers. While the school year will only resume in January 2021 (limiting our reach to parents and families) fortunately domestic air travel resumed in July, and international flights resumed in August, allowing the Upya and Givewatts teams greater movement and an ability to visit sites in person.

Upya and Givewatts have made use of virtual technologies and have continued to successfully coordinate the initiative using Zoom, Slack, WhatsApp and Email.

Achieving our deliverables

The London and Kilifi teams worked well together to overcome both technological and operational barriers. Sales within Kilifi have grown, spanning an area of almost 300 kilometres, owing to the determination of our sales agents. In spite of the challenges posed by the pandemic, we have engaged with rural end-users through a variety of engagements including training workshops, impact interviews and sales events. We have gained valuable feedback in order to implement changes within our operations, including expanding our sales area and product choice, and revisiting our pricing model to make longer-term deals more attractive and flexible. We are aiming to roll out referral-led sales in the coming weeks, alongside driving organic sales thanks to the high-quality manufacturing and performance of the last mile products.

We will provide another update at the end of the project to celebrate the success of our latest initiative. Thanks especially to the team on the ground who interact with the project customers on a daily basis, without them none of the work would be possible!