DIL State of the Lab Winter 2014-2015 - Page 7

WINTER 2014 new income-generating activities. In one of our study sites, we met a woman who had already begun selling cold fruit smoothies to her neighbors, within a month of gaining an electricity connection. as much as $200 over the course of a year to finance a limited solar home system product. What makes their financial model work is that the daily payments can be processed through the M-PESA mobile money platform. Given the high cost of rural electrification, there is a need to rigorously document the socioeconomic impacts of modern energy. There is also a need to better understand how newly connected households will consume energy moving forward. Our research team is currently implementing a randomized evaluation of grid connections in Western Kenya, and through this project, we hope to shed additional light on these questions. So while there is a general need for additional financing options for grid connections, the example illustrates that there is an equal need to develop innovative billing and collection technologies for financed grid connections that will incentivize both lenders and borrowers in a sustainable way. 4. What are the options available to poor rural Kenyan households to finance electricity installation and continued use? Currently, the options available for households to finance installations and appliance purchases are limited. Although the national utility had offered a financing plan in the past, the program encountered many challenges. There is, however, high demand for financed ene ɝ