One of the many challenges to selling in developing countries is getting customers to buy products that cost more up-front but save in the long-term.  Consider solar power in Kenya.   Even a price of $80 for a small portable solar power generator and light bulbs is out of reach for many poor Kenyans used to paying for electricity with monthly bills in smaller increments.  Many use kerosene to light their homes — which is more expensive and more taxing on the environment.

Now a company called eight19 has a new business model that is bringing lower cost solar power into the homes of many of Kenya’s poor.  They use a system where consumers pay a $10 deposit for a portable solar power unit, two LED bulbs, and an adapter to charge cell phones.  Consumers then buy scratch cards which allow them to use the unit — paying for energy as they go, but also paying off the unit over time.  After 18 months they own it, and they can continue to receive electricity for free or they could buy another unit and add more power.  See also “Starting from scratch” (The Economist, January 24, 2012).