The Great Ethiopian Solar Scam—PAYG Model

Ethiopia’s push for renewable energy solutions is noble, but it’s become an unfortunate playground for exploitation. The solar revolution promised to bring light to the dark corners of the country, but instead, it has given birth to a scam that preys on the hopes of the poor. The Pay-As-You-Go (PAYG) solar model, touted as the affordable answer to energy poverty, has turned out to be just another trap, and the victims are the very people who need reliable, sustainable power the most.

It all begins with a good story. A salesman walks into a village, holding up a shiny solar lantern or a sleek solar home system. They pitch the promise of cheap, clean energy that will revolutionize life in rural Ethiopia. No more long nights in the dark, no more reliance on expensive kerosene, and best of all, no more power cuts. But there’s a catch—this solar solution isn’t sold upfront. Instead, it’s pitched through the PAYG model, where customers are promised they can pay for their system in small installments. At first glance, it sounds like a win-win.

The reality, however, is far darker. The products sold through these schemes are often of poor quality—cheap imports made with substandard materials that break down faster than you can say “solar power.” The panels degrade after just a few months, the batteries fail to hold charge, and the lanterns flicker or stop working altogether. But the worst part? The customer is still stuck with a hefty debt for a system that doesn’t work, and there’s no way out. They’ve paid for something that was never going to last.

How can companies afford to offer these so-called “affordable” systems under the PAYG model? Simple: by bringing in compromised, low-quality products at rock-bottom prices and selling them on credit. The companies make their money through interest and ongoing payments, but the customers? They end up paying for something that barely functions.

And what happens when these systems fail? The company has already moved on, often with little to no accountability or support. If a solar panel stops working after six months, you’re still expected to keep paying, even though the system is useless. The product is no longer functional, but the debt remains, with no recourse for the customer.

To make matters worse, the regulatory bodies that should be overseeing the solar industry are either absent or ineffective. Without proper checks and standards, subpar solar products flood the market, and consumers are left with broken promises. The government, which should be protecting consumers and ensuring the quality of products, is either too slow to act or too overwhelmed to keep up. Meanwhile, private solar companies continue to profit by exploiting the system, selling dreams to rural families and leaving them in debt.

In the process, the very people who should be benefiting from solar energy end up disillusioned. After a few failed attempts, the trust in solar power begins to erode. Communities that could have been lifted out of energy poverty now regard solar as just another scam. "We tried it. It’s a lie," they’ll say. And who can blame them?

The great Ethiopian solar scam is built on a foundation of broken promises. The PAYG model was supposed to be the key to affordable solar energy, but instead, it has turned into a mechanism for exploitation. It preys on the poor, offering them hope and a chance at a better life, only to leave them with debt and useless products. Until the government steps in, cracks down on the fake solar products flooding the market, and ensures proper regulations are in place, the solar dream in Ethiopia will remain nothing more than a mirage.

For now, rural Ethiopians keep paying for the light that never comes. The only thing that’s truly “pay-as-you-go” is their debt, and it’s a cost that many can’t afford to bear.