Off-Grid Solar Technologies & BitLumens Comparative Advantage
Clean energy is becoming the top most priority for nations worldwide, and more so in developing countries of Africa, Latin America, where access to any form of energy has been a longstanding problem. It is estimated that nearly 15% of the world’s population lives without access to electricity.
Solving this problem has opened up opportunities for companies looking to provide off-grid solar power to the population inhabiting in rural areas.
Let’s take a look at some of them and how BitLumens differentiates itself from the existing solutions -
Angaza — They are a technology platform company that through partnerships with manufacturers and distributors, enables end-consumers to pay for clean energy devices in an affordable manner, over time.
Mobisol — They develop affordable and stand alone solutions for the needs of households and small businesses.
M-Kopa — They provide affordable solar home systems with an initial deposit followed by a recurring payment plan.
Azuri Technologies — They are a commercial provider of PayGo solar systems to rural off-grid communities by paying a small one-off installation fee followed by a recurring payment plan.
While some companies have an upfront fee component, the one trend that is common between all is the pay-as-you-go payment model.
However, BitLumens differentiates itself by not just providing solar hardware at an affordable cost with a pay-as-yo-go payment plan denominated in BLS tokens but by the following two key aspects -
1. Leveraging the Blockchain Technology
The KYC information collected of the user is stored on the blockchain and the device is powered by the BLS token that the agent purchases from the OTC market in proportion to the fiat payment they receive from the user.
2. Eliminating the middleman payment provider
Most solar providers use a telecom or other intermediaries for its payment mechanism. This adds an additional layer of commission thereby reducing profitability. The transaction charges also will be significantly less when a transfer is done via tokens vs the traditional telecom operator.
3. Easy Verification of Green Projects
With the sensors on the device, BitLumens will be able to accurately track and compare the reduction in carbon in each household, thereby increasing its chances of being verified as a Green Project.
4. Greater Empowerment of the User
By having KYC of each user and building the credit score through their recurring payment behavior, the user will have a chance to be included in the financial system and obtain loans from banks and other third party MFIs.
Strategically, BitLumens is targeting a different geography. Most the above players are focused on the African market where knowledge and use of off-grid solar panels is peaking. BitLumens, on the other hand, is targeting the Latin American market which presents a bigger opportunity as competition is limited.
