Improving access to solar water pumps in Ethiopia using PAYGO

This knowledge product presents the Hello Solar business case, which explores improving access to solar water pumps (SWPs) for smallholder farmers in Ethiopia through a pay-as-you-go (PAYGO) financing model. Supported by SEFFA’s Innovation Fund, the project aimed to address affordability barriers while promoting sustainable irrigation practices.

Hello Solar implemented a customer-focused approach, including farmer selection, down payments, installation with training, and ongoing support, supplemented by digital tools for engagement and fee collection. The initiative demonstrated strong technical feasibility and farmer uptake, with most targeted farmers adopting SWPs and experiencing increased productivity through irrigation.

However, the implementation faced challenges, including limited access to foreign currency for importing equipment, inflation-driven cost increases, and inconsistent regulatory frameworks around imports and taxation. Despite these barriers, the Innovation Fund played a critical role in enabling access to equipment and sustaining operations.

The case highlights the importance of flexible financing mechanisms, regulatory clarity, and partnerships in scaling renewable energy solutions for agriculture. It also shows that PAYGO models, combined with training and local engagement, can improve adoption and longterm sustainability of productive use energy technologies.

please reach out to Hiwote Teshome, Energy Sector Lead, Ethiopia

Email: hteshome@snv.org