Is Rent-to-Own Solar Power the Answer?

Jason Overdorf for SMITHSONIAN.COM:  For a little more than a year, the family has been supplementing the sporadic electricity the village gets from the grid with solar energy, thanks to a new pay-as-you-go business model pioneered by Canadian entrepreneur Paul Needham and his company, Simpa Networks. Call it “rent-to-own solar.”

Needham is a serial tech entrepreneur whose online advertising company BidClix made its way into the portfolio of Microsoft. As a doctoral student in economics at Cambridge, he was obsessed with the reasons customers will shell out for certain products and not others. One of the questions that always bugged him was, “Why don’t I own solar panels?” The reason, he determined, was the high up-front costs.

Imagine if mobile phone service was sold like solar energy. From an operator’s perspective, it would have made great sense to try to sell customers 10 years of phone calls in advance, so as to quickly earn back the money invested in building cell towers. But the person who suggested such a strategy would have been fired immediately, Needham says.

“You want to charge people for what they value, not the technology that’s providing it,” he says in a telephone interview.  Cont'd...

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

Bonfiglioli - Integrated AGILE frequency inverter for wind turbines

Bonfiglioli - Integrated AGILE frequency inverter for wind turbines

Integrated Agile, Bonfiglioli's frequency inverters for wind turbines, are available as custom design products on request, for Wind Solutions system integrators. Integrated Agile inverters can be mounted directly to the motor and represent a very compact alternative to the traditional yaw system without inverter or with the motor supplied by a standard frequency converter installed in a cabinet.