INNOVATIVE CUSTOMER FINANCING FOR CLEAN ENERGY PRODUCTS
This project will pilot a layaway (savings) customer financing scheme for clean energy products, implemented through a business-to-consumer (B2C) retail channel. For low-income households, purchasing clean cookstoves and solar lighting through layaway and flexible (M-PESA) payments reduces risk margins and rates compared to other financing options. EcoZoom aims to reach 15,300 households at the bottom of the pyramid (BoP) and open 6 retail stores, with a focus on underserved peri-urban regions in northern and coastal Kenya. EEP Africa financing enables EcoZoom to test and refine its savings scheme to best fit customer preferences and ability to pay, while also proving the B2C retail business model.
Outcome and Impact
The project will increase access to affordable clean energy products for low-income households in underserved regions, while proving the viability of a layaway business model through retail stores. The target sales volume will reduce 2,946 tonnes of CO2e, improve household health, and save families about EUR 200 per year on energy-related expenditure. The network of retail stores will hire and train local sales staff, creating new jobs and economic opportunities.