The Challenge

Almost a third of Pakistan’s entire population (55 million people) live in hard-to-reach places without access to electricity. Even for grid-connected customers, electricity is increasingly unreliable and expensive — power outages can last upwards of 22 hours in rural areas. For those living off the grid, households spend on average $20-30 a month on traditional energy sources such as kerosene and firewood to meet basic needs. Small capacity solar systems are clean and reliable, however distribution and affordability hinders bringing modern energy to off-grid communities.

The Innovation

Nizam Energy is a rapidly growing solar distribution company that serves both on-grid and off-grid customers. In the off-grid segment, the company has rolled out a pay as you go model to provide affordable solar home solutions to low-income customers with a last-mile distribution network. The company’s diversification across multiple market segments gives it the financial cushion to make a long-term sustained commitment to the development of the capital intensive off-grid segment. The off-grid segment is largely untapped by solar distribution companies in Pakistan, therefore, Nizam will be able to get a significant early mover advantage which will put it in a strong position for increased competition in the segment.

The Impact

Nizam Energy is creating a pathway out of energy poverty for those living off the grid in hard to reach places. Nizam’s solar home systems provide a cheaper, cleaner and more reliable source of energy to off-grid households as compared to traditional energy sources. Households will save on average $200-300 a year on energy spending in addition to long-term health and educational benefits.