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Pay-As-You-Go Solar Energy for Emerging Markets

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Presentation on theme: "Pay-As-You-Go Solar Energy for Emerging Markets"— Presentation transcript:

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

2 Household Energy Expenditures
KEROSENE LIGHT: $1 – 2 per week on kerosene fuel ~50 weeks / year ~ $75 / year MOBILE PHONES: $0.25 per charge ~8 charges per month ~ $25 / year Possibly consolidate with previous slide to show “micro” view of per- off grid household expenditures on energy per year. = ~$100 / year $17 Billion African annual fuel-based lighting market + $7 Billion African annual mobile charging market

3 SoLite3 – Angaza’s Pay-As-You-Go Solar Lamp
High Quality: Made with strong materials and has a long-lasting battery Affordable: Customers can make micro-payments spread out over time Easy Payments: using Mobile Money Insert slide with brief summary of the SoLite3, as the first product with which we’re demonstrating our PAYG technology Cost Competitive compared with alternatives such as kerosene

4 Advantages of Angaza’s Pay-As-You-Go Solar
Integrated PAYG Technology Ecosystem Revenue ($) Angaza’s Mobile Money Account Angaza Energy Hub – PAYG Management System Customer-Specific Usage and Diagnostic Data 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 Send $ 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 Sub out “tones” for anywhere it says “FSK” Add “energy hub” on “angaza proprietary…” Simplify text, take out right hand box, add in “advantages” in large bullets from Slide 6; remove Slide 6 Add two-way communication as one of the advantages Possibly add animation to emphasize two-way communication and collection of unit-specific data Emphasize very low cost – our major competitive advantage and allows us to embed it in low-cost lamps that are affordable for the majority of the African kerosene-dependent population Animation of Advantages – appear, make test bigger, different font color/background? This is major take-away of the slide Audio-based data transfer

5 DISTRIBUTION PARTNERS FUTURE: License PAYG into other technologies
Sales and Distribution B2B DISTRIBUTION PARTNERS Agent Sales Project-Based Sales PAYG Licensing FUTURE: License PAYG into other technologies Clean water kiosks Grid Meters 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 Update Barefoot to represent current MoU in place and upcoming pilot Cookstove example is the Biolite – has an electrical component that can be controlled by our technology Add one degree solar to licensing – check with lesley

6 Milestones: >1,500 PAYG units sold
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 Get details on current raise

7 E. African Project Manager
Angaza Team Angaza Advisors Lesley Marincola Founder, CEO Worked on first 3 generations of Amazon Kindle Stanford: B.S./M.S. Mech. Engr. 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 Niki Armacost Managing Director & Co-founder: Arc Finance 15+ years experience in global development Victoria Arch Director of Strategy PhD: Biology, UCLA Extensive international field research 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 Greg Beattie Angaza Attorney: MBV Law LLP Corporate and Technology Law, Specialization in startups

8 East Africa Project Manager
New logo, sub in Fiona details Fix lamp … Fiona Mati East Africa Project Manager

9 Q&A slides

10 Very low cost – adds only ~$2 to unit
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 Possibly put in back up slides for Q/A? Usage and diagnostic data encoded in unit is sent back to Angaza through speaker embedded in unit Very low cost – adds only ~$2 to unit Optimized for small-scale energy products that comprise the market majority

11 PAYG Two-Way Communication: Data Collection
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) Light (hrs) Review this information as talking points. Maybe remove this slide, and move to back for Q/A Angaza collects usage and diagnostic data from each unit

12 Pay-As-You-Go Solution Simpa Networks Progressive Purchase
Pay-As-You-Go Competitive Landscape Companies Pay-As-You-Go Solution Angaza 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 If not enough space, move to the back for Q/A M-KOPA Solar

13 with electrical component
Other PAYG Applications 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. Maybe move up by #13 to visually show other applications of technology 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.

14 Intellectual Property Strategy
Full U.S. Patent Application and International PCT Application Filed Convert PCT to country-specific patents U.S. Provisional Patent Filed Dec 2011 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) Remove?

15 = Unit Economics Licensing Assumptions: Angaza Economic Outcomes:
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 = Move to back for Q/A Review for full understanding

16 Why Angaza? Proprietary PAYG Technology Revenue-Generating Stage
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 Change to 3 countries – no current sales in Uganda

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