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Cross-subsidization or bundling services. Because solar home system companies are not offering people enough electricity to cook or boil water, they might consider offering bundled services to offer people gas or other modern means for cooking, or they will may not survive once the grid arrives. Perhaps the Discos (or solar home system companies) could partner with telecom and gas companies to offer people packages that could include pay-as-you-go for mobile phone service, electricity, and cooking gas. What often seems to be a losing proposition, though, is selling a rural customer nothing more than a tiny amount of electricity from the grid.
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Importantly, we should focus less on how much power people use and more on how much productivity a household can get out of a fixed amount of power. Access to an unlimited supply of power at $.10 kWh is a good option only when the power can be used for something. Solar home system companies measure how many productive things a person can do with a fixed-sized solar panel as they become more and more efficient. See my recent blog titled, “Rethinking the Cost of Off-Grid Power: Let’s Do the Math.”
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