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Pay-As-You-Go Solar Energy for Emerging Markets Fiona Mati Angaza Design Inc. East African Project Manager

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Presentation on theme: "Pay-As-You-Go Solar Energy for Emerging Markets Fiona Mati Angaza Design Inc. East African Project Manager"— Presentation transcript:

1 Pay-As-You-Go Solar Energy for Emerging Markets Fiona Mati Angaza Design Inc. East African Project Manager

2 MOBILE PHONES: $0.25 per charge ~8 charges per month Household Energy Expenditures = ~$100 / year $17 Billion African annual fuel-based lighting market + $7 Billion African annual mobile charging market KEROSENE LIGHT: $1 – 2 per week on kerosene fuel ~50 weeks / year ~ $75 / year ~ $25 / year

3 SoLite3 – Angaza’s Pay-As-You-Go Solar Lamp Affordable: Customers can make micro- payments spread out over time High Quality: Made with strong materials and has a long-lasting battery Easy Payments: using Mobile Money Cost Competitive compared with alternatives such as kerosene

4 Audio-based data transfer Receives mobile money payment Automatically initiates phone call to the customer’s phone Transfers payment data embedded in audible tones to the unit Receives and stores data from the unit to unlock a proportional amount of energy output Voice Call Advantages of Angaza’s Pay-As-You- Go Solar Low Cost ($2 to embed) Fits customers’ cashflow Recurring Revenue Bidirection communication: Usage and diagnostic data is sent back to Angaza Angaza’s Mobile Money Account Customer-Specific Usage and Diagnostic Data Send $ Angaza Energy Hub – PAYG Management System Revenue ($) Integrated PAYG Technology Ecosystem

5 Sales and Distribution DISTRIBUTION PARTNERS Sell Angaza- branded products through local entrepreneur networks or SME retail locations Sell Angaza- branded PAYG products through focused projects (e.g., schools and micro-enterprises) License into third- party products and sell through larger, established, branded channels FUTURE: License PAYG into other technologies Clean water kiosks Grid Meters Agent Sales Project-Based Sales PAYG Licensing B2B

6 Traction: Revenue-Generating >1,500 PAYG units sold >$50,000 in upfront product revenue realized Sums Raised to Date: Currently raising $750,000 in addition to $525,000 already raised Awarded REEEP Grant: $180,000 Tech Awards Laureate: $75,000 Millennial Impact Challenge: $10,000 Milestones: Expand Kenyan office Field local director Add 6 new distribution partners Grow Sales Lower cost of goods to increase volume Drive down cost of distribution partner acquisition Additional Revenue Sources License embedded payment hardware Expand data acquisition and monetization

7 Mbwana Alliy Founder & Managing Partner: Savannah Fund MBA: Stanford Graduate School of Business Bryan Silverthorn CTO PhD: University of TX (Austin) in CS Signal processing and firmware Lesley Marincola Founder, CEO Worked on first 3 generations of Amazon Kindle Stanford: B.S./M.S. Mech. Engr. Victoria Arch Director of Strategy PhD: Biology, UCLA Extensive international field research Angaza Team Niki Armacost Managing Director & Co-founder: Arc Finance 15+ years experience in global development Greg Beattie Angaza Attorney: MBV Law LLP Corporate and Technology Law, Specialization in startups Himanshu Choksi Managing Director: Pacifica Fund (Venture Capital & Private Equity) 10+ years entrepreneurial, managerial consulting experience Fiona Mati E. African Project Manager Successful history in introducing new products to East African market Angaza Advisors

8 Fiona Mati East Africa Project Manager

9 Q&A slides

10 Proprietary Technology Audio-based Data Transfer: Transmission of information through discrete frequency changes in audible tones High-frequency audible tones are played through the speaker on the customer’s phone The tones are received by a microphone in the unit and decoded by an embedded microprocessor The unit is unlocked and enabled for energy output proportional to what the customer has pre-paid Very low cost – adds only ~$2 to unit Optimized for small-scale energy products that comprise the market majority Usage and diagnostic data encoded in unit is sent back to Angaza through speaker embedded in unit

11 PAYG Two-Way Communication: Data Collection Light (hrs) Additional revenue stream: - Usage data can be sold to government or private research organizations (e.g., World Bank) interested in Base-of-the-Pyramid energy consumption patterns - Per-unit data can be used to validate carbon credit programs Remote customer support: - Direct link to customers’ cell phones - Can collect and diagnose unit performance metrics such as solar panel efficiency and battery life, and communicate with customer via SMS - Provides distributors with real-time data to support customer service Single Customer Profile: (Stephano) Angaza collects usage and diagnostic data from each unit

12 Pay-As-You-Go Competitive Landscape CompaniesPay-As-You-Go SolutionAngaza Advantage External keypad locks/unlocks systems Payment is mediated by physical scratch-card networks Angaza PAYG technology is completely embedded within product for lower cost, superior tamper-proofing Integration with mobile money streamlines payment system and provides payment flexibility Two-way communication via cellular network allows remote data collection from each unit Embedded GSM module in each unit regulates lock/unlock Angaza PAYG adds only ~$2/unit (vs. ~$17/unit for GSM module GSMA 2012 ) - Optimized for 1-10W systems Shorter payback time decreases financing risk Angaza PAYG is not tied to any specific mobile carrier, allowing easy scaling between markets Azuri IndiGo Simpa Networks Progressive Purchase M-KOPA Solar

13 Other PAYG Applications Village Water Kiosks Villagers can pay per liter of water from village-level water kiosks with Angaza’s Pay-As-You-Go. Flow meter regulates output and shuts off flow when pre-paid quantity is reached. Clean Cookstoves with electrical component New cookstoves which generate electricity from heat (e.g. BioLite) can be regulated with Angaza’s Pay-As-You-Go Grid Meters Current meters in E. Africa use a keypad-based payment system and cannot send data back. Angaza’s Pay-As-You-Go can be cheaply embedded within the meter to provide two-way communication. Angaza’s Pay-As-You-Go technology can be embedded in a wide variety of products to provide pay-per-use functionality, and we are actively pursuing partners to facilitate this.

14 Intellectual Property Strategy Dec 2011 Full U.S. Patent Application and International PCT Application Filed U.S. Provisional Patent Filed Convert PCT to country-specific patents Dec 2012 May 2014 What does it cover? Audio-based data transfer applied to Pay-As-You-Go model Ecosystem involved with Pay-As-You-Go functionality including embedded hardware, embedded firmware, and cloud-based data management system with details on how these parts interact Two-way cellular communication with opportunities for data collection Is not just restricted to solar products, but rather highlights transferability of technology to many different types of products (water kiosks, grid meters, etc)

15 Unit Economics Licensing Assumptions: - Angaza takes a 15% transaction fee on all energy payments channeled through our platform -Chart based on expected payment schedule for 5-watt product with $30 upfront fee and $150 payoff price - Angaza COGS includes airtime and mobile money fees Angaza Economic Outcomes: ~$17 in profit per unit sold ~75% profit margin =

16 Proprietary PAYG Technology Full U.S. Patent and PCT Applications Filed SoLite-2 with PAYG sold in Tanzania with 100% payback to date High-Volume production initiated – 2000 units Widely applicable for many different types of products (e.g., clean water kiosks) Data collection opens avenues for targeted marketing and unprecedented customer support and retention Revenue-Generating Stage Established manufacturing, Quality-tested products, PAYG sales in countries to date Effective Partnerships Vodacom Tanzania (MPESA TZ) MIT/Sloan, Institute for Poverty Action (IPA) Distributor relationships incl.ToughStuff International, Barefoot Power, Zamsolar, SunnyMoney etc. Strong Team Stanford/UT Austin/UCLA educated (2 PhDs, 1 Masters in Engineering) Extensive experience in our target markets Why Angaza?

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