Pay-As-You-Go Solar Energy for Emerging Markets Fiona Mati Angaza Design Inc. East African Project Manager [email protected].

Pay-As-You-Go Solar Energy for Emerging Markets

Fiona MatiAngaza Design Inc.

East African Project [email protected]

MOBILE PHONES: • $0.25 per charge• ~8 charges per month

Household Energy Expenditures

= ~$100 / year

• $17 Billion African annual fuel-based lighting market + $7 Billion African annual mobile charging market

KEROSENE LIGHT: • $1 – 2 per week on kerosene fuel• ~50 weeks / year

~ $75 / year

~ $25 / year

SoLite3 – Angaza’s Pay-As-You-Go Solar Lamp

Affordable: Customers can make micro-payments spread out over time

High Quality: Made with strong materials and has a

long-lasting batteryEasy Payments: using Mobile Money

Cost Competitive compared with alternatives such as

kerosene

Audio-based data transfer

• Receives mobile money payment • Automatically initiates phone call to the

customer’s phone• Transfers payment data embedded in

audible tones to the unit• Receives and stores data from the unit to

unlock a proportional amount of energy output

Voice Call Advantages of Angaza’s Pay-As-You-Go Solar

• Low Cost ($2 to embed)• Fits customers’ cashflow

• Recurring Revenue• Bidirection communication: Usage

and diagnostic data is sent back to Angaza

Angaza’s Mobile Money Account

Customer-Specific Usage and Diagnostic

Data

Send $

Angaza Energy Hub – PAYG Management System

Revenue ($)

Integrated PAYG Technology Ecosystem

Sales and Distribution

DISTRIBUTION PARTNERS

Sell Angaza-branded products

through local entrepreneur

networks or SME retail locations

Sell Angaza-branded PAYG

products through focused projects

(e.g., schools and micro-enterprises)

License into third-party products and sell through larger,

established, branded channels

FUTURE: License PAYG into other

technologies

• Clean water kiosks

• Grid Meters

Agent Sales Project-Based Sales PAYG Licensing

B2B

Traction: Revenue-Generating

• >1,500 PAYG units sold• >$50,000 in upfront

product revenue realized

Sums Raised to Date:• Currently raising $750,000 in addition to $525,000 already raised•Awarded REEEP Grant: $180,000•Tech Awards Laureate: $75,000• Millennial Impact Challenge: $10,000

Milestones:• Expand Kenyan office

• Field local director • Add 6 new distribution partners

• Grow Sales• Lower cost of goods to increase

volume• Drive down cost of distribution partner

acquisition

• Additional Revenue Sources• License embedded payment hardware• Expand data acquisition and

monetization

Mbwana AlliyFounder & Managing Partner:

Savannah Fund

MBA: Stanford Graduate School of Business

Bryan SilverthornCTO

PhD: University of TX (Austin) in CSSignal processing and firmware

Lesley MarincolaFounder, CEO

Worked on first 3 generations of Amazon Kindle

Stanford: B.S./M.S. Mech. Engr.

Victoria ArchDirector of Strategy

PhD: Biology, UCLAExtensive international field research

Angaza Team

Niki ArmacostManaging Director & Co-founder:

Arc Finance15+ years experience in global

development

Greg BeattieAngaza Attorney: MBV Law LLP

Corporate and Technology Law, Specialization in startups

Himanshu ChoksiManaging Director: Pacifica Fund (Venture Capital & Private Equity)

10+ years entrepreneurial, managerial consulting experience

Fiona MatiE. African Project Manager

Successful history in introducing new products to East African market

Angaza Advisors

Fiona MatiEast Africa Project [email protected]

www.angazadesign.com

Q&A slides

Proprietary Technology Audio-based Data Transfer: Transmission of information

through discrete frequency changes in audible tones

High-frequency audible tones are played through the speaker on the

customer’s phone

The tones are received by a microphone in the unit and decoded

by an embedded microprocessor

The unit is unlocked and enabled for energy output proportional to what

the customer has pre-paid

Very low cost – adds only ~$2 to unitOptimized for small-scale energy products that comprise the market majority

Usage and diagnostic data encoded in unit is sent back to Angaza through

speaker embedded in unit

PAYG Two-Way Communication: Data Collection

Light Usage

Mobile charging Usage

Avg Light Used per day (h)

Avg Cell phone charges per week

0.0

1.0

2.0

3.0

4.0

Light (hrs)

Additional revenue stream:

- Usage data can be sold to government or private research organizations (e.g., World Bank) interested in Base-of-the-Pyramid energy consumption patterns

- Per-unit data can be used to validate carbon credit programs

Remote customer support:

- Direct link to customers’ cell phones

- Can collect and diagnose unit performance metrics such as solar panel efficiency and battery life, and communicate with customer via SMS

- Provides distributors with real-time data to support customer service

Single Customer Profile:(Stephano)

Angaza collects usage and diagnostic data from each unit

Pay-As-You-Go Competitive LandscapeCompanies Pay-As-You-Go Solution Angaza Advantage

External keypad locks/unlocks systems

Payment is mediated by physical scratch-card networks

Angaza PAYG technology is completely embedded within product for lower cost, superior tamper-proofing

Integration with mobile money streamlines payment system and provides payment flexibility

Two-way communication via cellular network allows remote data collection from each unit

Embedded GSM module in each unit regulates

lock/unlock

Angaza PAYG adds only ~$2/unit (vs. ~$17/unit for GSM module GSMA

2012) - Optimized for 1-10W systems

Shorter payback time decreases financing risk

Angaza PAYG is not tied to any specific mobile carrier, allowing easy scaling between markets

Azuri IndiGo

Simpa Networks Progressive Purchase

M-KOPA Solar

Other PAYG Applications

Village Water Kiosks

Villagers can pay per liter of water from village-level

water kiosks with Angaza’s Pay-As-You-Go. Flow meter regulates output and shuts

off flow when pre-paid quantity is reached.

Clean Cookstoveswith electrical component

New cookstoves which generate electricity from heat (e.g. BioLite) can be regulated with Angaza’s

Pay-As-You-Go

Grid Meters

Current meters in E. Africa use a keypad-based payment

system and cannot send data back. Angaza’s Pay-As-You-Go

can be cheaply embedded within the meter to provide two-way communication.

Angaza’s Pay-As-You-Go technology can be embedded in a wide variety of products to provide pay-per-use functionality, and we are actively pursuing partners to facilitate this.

Intellectual Property Strategy

Dec 2011

Full U.S. Patent Application and

International PCT Application Filed

U.S. Provisional Patent Filed

Convert PCT to country-

specific patents

Dec 2012 May 2014

What does it cover?

• Audio-based data transfer applied to Pay-As-You-Go model

• Ecosystem involved with Pay-As-You-Go functionality including embedded hardware, embedded firmware, and cloud-based data management system with details on how these parts interact

• Two-way cellular communication with opportunities for data collection

• Is not just restricted to solar products, but rather highlights transferability of technology to many different types of products (water kiosks, grid meters, etc)

Unit Economics

Licensing Assumptions:

- Angaza takes a 15% transaction fee on all energy payments channeled through our

platform -Chart based on expected payment

schedule for 5-watt product with $30 upfront fee and $150 payoff price- Angaza COGS includes airtime and

mobile money fees

Angaza Economic Outcomes:

~$17 in profit per unit sold~75% profit margin=

• Proprietary PAYG Technology• Full U.S. Patent and PCT Applications Filed• SoLite-2 with PAYG sold in Tanzania with

100% payback to date• High-Volume production initiated – 2000

units• Widely applicable for many different types

of products (e.g., clean water kiosks)• Data collection opens avenues for targeted

marketing and unprecedented customer support and retention

• Revenue-Generating Stage• Established manufacturing, Quality-tested

products, PAYG sales in countries to date

• Effective Partnerships• Vodacom Tanzania (MPESA TZ)• MIT/Sloan, Institute for Poverty Action (IPA) • Distributor relationships incl.ToughStuff

International, Barefoot Power, Zamsolar, SunnyMoney etc.

• Strong Team• Stanford/UT Austin/UCLA educated (2 PhDs,

1 Masters in Engineering)• Extensive experience in our target markets

Why Angaza?