Angaza Design

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Overview

Eradicating energy poverty by removing the upfront cost barrier of solar energy systems through the implementation of Pay-As-You-Go technology.

 

Overview

Headquarters: San Francisco, CA
Established: 2010
Impact Areas: Tanzania, Kenya
Type: For Profit
Energy Sectors:
Business Model Types:
Staff Size: 9 full-time, 2 part-time
Major Funders: Clinton Global Initiative University, Haas Center for Public Service, Woods institute for the environment, USAID Development Innovation Ventures, Renewable Energy and Energy Efficiency Partnership, other angel investors
Awards: 2010: Harvard University Pitch for Change Competition Award; Stanford University Social Entrepreneurship Business Plan Competition Award2011: British Airways Face of Opportunity Grant Recipient; Santa Clara Global Social Benefit Incubator2012: The Tech Museum Awards; IGNITE Good/Huffington Post Millennial Impact Challenge; USAID Development Innovation Ventures; REEEP2013: Echoing Green Fellow; Women 2.0 Pitch SF competition

 

ABOUT

angaza

Angaza Design is removing the upfront price barrier of solar devices by enabling off-grid families and small businesses to pre-pay for solar energy over time in discrete, affordable amounts. To do this, the enterprise has developed a proprietary Pay-As-You-Go (PAYG) technology ecosystem, which accepts and manages micropayments from end-customers, and provides robust software services to optimize solar sales and operations.

 

Energy Products/Services

  • Angaza’s “Energy Hub” is a cloud-based software platform that integrates directly with mobile money platforms to accept PAYG micropayments from end-customers. The Energy Hub also provides an intuitive front-end interface to help solar distributors manage and streamline PAYG operations. Through the Hub, distributors can visualize payment status on units in real-time, store customer data, push out reminder and promotion SMSs, and analyze sales and usage data.
  • When necessary, Angaza also provides custom PAYG engineering services to make solar device manufacturers’ current product line PAYG-ready.

Target Market

  • Off-grid individuals, families, and small businesses in East Africa, with plans to scale globally.
  • In East Africa there are 34 million off-grid households who need clean and affordable electricity.

Angaza Design

Revenue Streams

  • Corporate-level financing from a mix of non-dilutive grants and prizes, corporate equity, and sales revenue.

Value Proposition

  • There are over 100 million off-grid individuals in East Africa, and the vast majority of them are dependent on expensive, substandard, and unhealthy energy sources, such as kerosene. These individuals would benefit greatly from clean, renewable energy, but the upfront price of solar devices keeps them out of reach to the average off-grid consumer.
  • A number of manufacturers sell high-quality solar energy products – from small, portable lamps to large single-home systems – to off-grid energy consumers.
  • With Angaza’s PAYG technology, any solar distributor can charge for its product in small weekly increments, removing the upfront price barrier and thus, exponentially increasing their target market.
  • Angaza’s PAYG technology also streamlines distribution by providing the Energy Hub, a cloud-based software platform that integrates directly with mobile money platforms to accept PAYG micropayments from end-customers.
  • The Energy Hub also provides an intuitive front-end interface to help solar distributors manage and streamline PAYG operations. Through the Hub, distributors can visualize payment status on units in real-time, store customer data, push out reminder and promotion SMSs, and analyze sales and usage data.

Problem Addressed

  • Angaza’s PAYG technology primarily addresses the need for energy, but in doing so, also impacts income generation, health, and environmental sustainability. There are more than 1.2 billion off-grid individuals around the world who lack access to clean, reliable sources of energy; Angaza is bringing down barriers to acquire high-quality solar products.
  • The majority of off-grid individuals in emerging markets burn kerosene, light candles, or use disposable batteries to meet their energy needs. These energy sources are extremely expensive; for example, it is common for a villager in Kenya to spend 50 times more than an American for a kilowatt of energy.
  • Access to solar significantly reduces the ongoing costs of energy for those off-grid individuals. Having access to clean, renewable energy also allows an increase in income generating activities by enabling businesses to stay open later and students to study after dark. Thus, users of solar products both decrease energy expenditures and have an opportunity to increase their income.
  • Access to solar also has significant health and environmental benefits. Burning kerosene is dangerous, causing indoor air pollution (which the NY Times estimates kills over 2 million people per year) and a high risk of burns and fires. Furthermore, use of kerosene, candles, and batteries leads to carbon pollution and toxic waste, damaging the environment. In comparison, solar energy is clean and environmentally friendly; thus, the health of both users and the environment improves greatly as off-grid individuals and businesses transition to solar energy.

Where They Are Now

Impact to Date

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Milestones

  • 2009: Began initial user research in East Africa
  • 2010: Incorporated as Delaware C-Corp
  • 2011: Launched SoLite1 solar lamp sales in Kenya, Tanzania and Uganda
  • 2011: Initiated development of PAYG technology
  • 2012: Piloted PAYG technology in Tanzania
  • 2013: Commercially launched SoLite3 sales and the Energy Hub
  • 2014: Scaling PAYG sales through partnerships with 3rd party manufacturers

Growth Plan

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How They Deliver

Product Sourcing

  • The Energy Hub is developed entirely in-house. This PAYG platform is licensed to 3rd party manufacturers to make their existing product line, or existing PAYG products, ready to scale.

Distribution

  • Angaza works closely with manufacturers to integrate our PAYG technology into their existing product line, and provides pico-solar distributors with a suite of software tools to facilitate and manage their sales of PAYG-ready pico-solar products to end-users.

Social Impact

  • Angaza measures social impact based on the amount of lights it sells, as well as the amount of use they get.
  • With the Solite 2, Angaza will be able to track exactly how much power customers are using, and therefore more accurately gauge how much the light is benefiting them.

Revenue & Affordability

  • Angaza’s PAYG technology makes solar products vastly more affordable for end-users, as they have the opportunity to pay for the products in small, weekly increments (rather than one lump sum up front).
  • Angaza is also working with third party financiers to facilitate flow of working capital to pico-solar distributors.

Financing

  • Angaza is financed through a mix of grants, awards, and angel investments.

Scaling

Angaza Solite

Description:Angaza’s “Energy Hub” is a cloud-based software platform that integrates directly with mobile money platforms to accept PAYG micropayments from end-customers. The Energy Hub also provides an intuitive front-end interface to help solar distributors manage and streamline PAYG operations. Through the Hub, distributors can visualize payment status on units in real-time, store customer data, push out reminder and promotion SMSs, and analyze sales and usage data.Angaza also provides custom PAYG engineering services to make solar device manufacturers’ current product line PAYG-ready.How It’s Used:The purpose of Angaza’s PAYG technology is two-fold: 1) increase solar energy access for off-grid individuals and businesses by removing the upfront cost barrier of solar energy systems; and 2) help distributors sell more solar energy products, by allowing them to use our PAYG technology to bring down upfront prices, access analytics of their sales, track payments and sales in real time, and increase communication with end-users.

Product Type:

Our PAYG technology works with any type of solar product, from small handheld lamps to fully installed solar home systems.

 

More Resources

Online Resources

Contact Information

Angaza Design

414 Brannan St

San Francisco, CA, 94107

+1 650 308 9526
sales@angazadesign.com