‭Energy‬‭Challenges‬

‭Updated‬‭October‬‭2023‬

‭Sell‬‭solar‬‭lamps‬‭to‬‭hard-to-reach‬‭communities‬
‭ e‬‭challenge‬‭you‬‭to‬‭design‬‭a‬‭new‬‭social‬‭enterprise‬‭that‬‭distributes‬‭off-the-shelf‬‭pico‬‭solar‬
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‭lamps‬‭to‬‭underserved‬‭markets.‬‭Millions‬‭of‬‭families‬‭lack‬‭energy‬‭access,‬‭and‬‭a‬‭solar‬‭lamp‬‭is‬‭often‬
‭the‬‭first‬‭step‬‭families‬‭take‬‭toward‬‭energy‬‭security.‬‭D-Prize‬‭will‬‭award‬‭up‬‭to‬‭$20,000‬‭to‬‭teams‬
‭with‬‭a‬‭plan‬‭to‬‭launch‬‭a‬‭pilot‬‭venture‬‭selling‬‭500‬‭pico‬‭solar‬‭lamps,‬‭with‬‭a‬‭vision‬‭to‬‭reach‬‭100,000‬
‭beneficiaries‬‭within‬‭five‬‭years‬‭and‬‭eventually‬‭grow‬‭nation-wide.‬

‭The‬‭Poverty‬‭Problem‬
‭ n‬‭estimated‬‭215‬‭million‬‭people‬‭are‬‭without‬‭access‬‭to‬‭basic‬‭energy‬‭products,‬‭despite‬‭the‬‭fact‬
A
‭that‬‭they‬‭can‬‭afford‬‭them.‬1 ‭This‬‭is‬‭a‬‭significant‬‭constraint‬‭on‬‭their‬‭life.‬

‭ arge‬‭energy‬‭grids‬‭may‬‭be‬‭the‬‭ideal‬‭solution,‬‭but‬‭they‬‭are‬‭slow‬‭to‬‭roll‬‭out.‬‭In‬‭the‬‭meantime,‬‭the‬
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‭most‬‭immediate‬‭lighting‬‭option‬‭for‬‭many‬‭off-grid‬‭families‬‭are‬‭kerosene‬‭lamps.‬‭However‬‭they‬‭are‬
‭dim‬‭and‬‭the‬‭light‬‭produced‬‭doesn’t‬‭lend‬‭itself‬‭to‬‭productive‬‭activities‬‭(like‬‭studying,‬‭or‬‭working).‬
‭They‬‭are‬‭relatively‬‭expensive,‬‭and‬‭cost‬‭a‬‭minimum‬‭of‬‭$35‬‭per‬‭year‬‭to‬‭keep‬‭fueled.‬‭There‬‭are‬
‭also‬‭concerns‬‭about‬‭indoor‬‭air‬‭pollution‬‭and‬‭subsequent‬‭health‬‭problems,‬‭and‬‭a‬‭real‬‭risk‬‭of‬
‭house‬‭fire.‬2‭,‬3‭,‬4 ‭The‬‭problem‬‭is‬‭particularly‬‭acute‬‭in‬‭rural‬‭Africa,‬‭where‬‭kerosene‬‭prices‬‭can‬‭be‬
‭35%‬‭higher‬‭than‬‭in‬‭urban‬‭areas.‬5

‭1‬
‭Hardest-to-Reach:‬‭Unlocking‬‭Clean‬‭Energy‬‭Investments‬‭for‬‭Those‬‭Living‬‭Beyond‬‭the‬‭Grid.‬‭Acumen‬‭Energy‬‭Investments,‬
‭2022.‬‭https://acumen.org/wp-content/uploads/Hardest-to-Reach-White-Paper.pdf‬‭(‬‭a‭)‬ ‬
‭2‬
‭Lam,‬‭Nicholas;‬‭Smith,‬‭Kirk;‬‭Gauthier,‬‭Alison,‬‭Bates,‬‭Michael.‬‭Kerosene:‬‭A‬‭Review‬‭of‬‭Household‬‭Uses‬‭and‬‭Their‬‭Hazards‬‭in‬
‭Low-‬‭and‬‭Middle-Income‬‭Countries.‬‭J‬‭Toxicol‬‭Environ‬‭Health‬‭B‬‭Crit‬‭Rev.‬‭2012;‬‭15(6):‬‭396–432.‬
‭3‬
‭Howe,‬‭Charles;‬‭Lawrence,‬‭Joanne;‬‭Patel,‬‭Hitendra.‬ ‭SolarAid:‬‭Revolutionizing‬‭the‬‭Way‬‭to‬‭Make‬‭Energy‬‭Affordable‬‭for‬
‭Everyone.”‬ ‭Hult‬‭International‬‭Business‬‭School‬‭Publishing.‬ ‭January‬‭2012.‬
‭4‬
‭E.‬‭Mills,‬‭"The‬‭Specter‬‭of‬‭Fuel-based‬‭Lighting,"‬‭Science‬‭301,‬‭1263‬‭(2005).‬
‭5‬
‭Cost‬‭of‬‭Kerosene‬‭in‬‭Africa‬‭Threatens‬‭Access‬‭to‬‭Lighting.‬‭Lighting‬‭Africa,‬‭2012.‬
‭http://lightingafrica.org/cost-of-kerosene-in-rural-africa-threatens-access-to-lighting‬‭(‬‭a‭)‬ ‬

‭1‬
‭The‬‭Proven‬‭Intervention‬
‭ olar‬‭home‬‭systems‬‭and‬‭pico‬‭(handheld)‬‭solar‬‭lamps‬‭are‬‭better‬‭alternatives‬‭than‬‭kerosene‬
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‭lamps,‬‭and‬‭are‬‭immediately‬‭available.‬

‭ he‬‭primary‬‭benefit‬‭of‬‭solar‬‭lighting‬‭is‬‭related‬‭to‬‭income.‬‭Families‬‭see‬‭cost-savings‬‭in‬‭their‬‭fuel‬
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‭costs.‬‭They‬‭can‬‭be‬‭more‬‭productive‬‭with‬‭brighter‬‭lighting.‬‭Solar‬‭also‬‭erases‬‭many‬‭of‬‭the‬
‭concerns‬‭around‬‭pollution,‬‭health‬‭problems,‬‭and‬‭house‬‭fire.‬‭Although‬‭there‬‭is‬‭not‬‭yet‬‭a‬‭large‬
‭body‬‭of‬‭rigorous‬‭evidence‬‭in‬‭favor‬‭of‬‭this‬‭intervention,‬‭we‬‭find‬‭the‬‭existing‬‭evidence‬‭of‬
‭household‬‭benefits‬‭and‬‭cost‬‭effectiveness‬‭promising.‬

‭ ‬‭2017‬‭Acumen‬‭study‬‭found‬‭that‬‭pico‬‭lamps‬‭are‬‭a‬‭cheaper‬‭lighting‬‭solution‬‭in‬‭the‬‭long-run‬‭than‬
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‭kerosene.‬‭Households‬‭usually‬‭break‬‭even‬‭on‬‭costs‬‭within‬‭a‬‭few‬‭months‬‭of‬‭switching.‬6 ‭Pico‬
‭lamps‬‭cost‬‭around‬‭$10-20‬‭per‬‭unit,‬‭and‬‭provide‬‭up‬‭to‬‭20‬‭times‬‭more‬‭illumination‬‭than‬‭kerosene‬
‭lamps.‬7

‭ e‬‭also‬‭know‬‭that‬‭there‬‭are‬‭benefits‬‭to‬‭quality‬‭of‬‭life,‬‭study‬‭hours,‬‭and‬‭safety.‬8 ‭A‬‭randomized‬
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‭control‬‭trial‬‭(RCT)‬‭of‬‭larger‬‭home‬‭solar‬‭lighting‬‭systems‬‭was‬‭conducted‬‭in‬‭Uganda‬‭in‬‭2023.‬9 ‭It‬
‭estimated‬‭that‬‭installing‬‭solar‬‭home‬‭systems‬‭improved‬‭the‬‭quality‬‭of‬‭life‬‭for‬‭consumers‬‭about‬‭as‬
‭much‬‭as‬‭having‬‭access‬‭to‬‭government‬‭healthcare‬‭(the‬‭study‬‭found‬‭a‬‭cost‬‭effectiveness‬‭of‬
‭$2000/QALY‬‭gained).‬‭We‬‭expect‬‭pico‬‭solar‬‭lamps‬‭to‬‭similarly‬‭improve‬‭quality‬‭of‬‭life‬‭relative‬‭to‬
‭its‬‭lower‬‭cost.‬‭(Because‬‭pico‬‭lamps‬‭are‬‭cheaper‬‭than‬‭solar‬‭home‬‭systems‬‭we‬‭expect‬‭a‬‭higher‬
‭marginal‬‭benefit‬‭per‬‭dollar,‬‭though‬‭not‬‭a‬‭higher‬‭total‬‭benefit,‬‭making‬‭pico‬‭lamps‬‭likely‬‭more‬‭cost‬
‭effective‬‭than‬‭$2000/QALY).‬

‭ ore‬‭importantly,‬‭developing‬‭a‬‭delivery‬‭network‬‭of‬‭pico‬‭solar‬‭lamps‬‭is‬‭a‬‭leverage‬‭point‬‭to‬‭larger‬
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‭energy‬‭access.‬10 ‭Many‬‭of‬‭the‬‭solar‬‭distribution‬‭networks‬‭started‬‭a‬‭decade‬‭ago‬‭began‬‭with‬‭pico‬
‭lanterns,‬‭and‬‭have‬‭since‬‭expanded‬‭to‬‭include‬‭solar‬‭home‬‭systems‬‭and‬‭other‬‭up-market‬
‭products‬‭that‬‭have‬‭even‬‭greater‬‭impact‬‭on‬‭a‬‭household’s‬‭cost‬‭savings‬‭and‬‭productivity.‬

‭ or‬‭instance,‬‭in‬‭regions‬‭such‬‭as‬‭West‬‭Africa,‬‭solar‬‭lamps‬‭have‬‭gone‬‭from‬‭being‬‭almost‬‭entirely‬
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‭unheard‬‭of,‬‭to‬‭widespread‬‭rural‬‭adoption‬‭in‬‭under‬‭20‬‭years.‬11 ‭Major‬‭efforts‬‭in‬‭this‬‭space‬‭include‬
‭the‬‭World‬‭Bank‬‭Group’s‬‭Lighting‬‭Global‬‭,‬‭which‬‭has‬‭helped‬‭nearly‬‭60‬‭million‬‭households‬‭meet‬
‭basic‬‭energy‬‭needs‬‭through‬‭off-grid‬‭solar.‬

‭ hile‬‭these‬‭trends‬‭are‬‭encouraging,‬‭some‬‭households‬‭in‬‭some‬‭regions‬‭are‬‭likely‬‭to‬‭be‬‭left‬
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‭behind.‬‭There‬‭are‬‭many‬‭countries‬‭without‬‭growing‬‭energy‬‭access.‬‭And‬‭even‬‭in‬‭countries‬‭with‬
‭encouraging‬‭trends,‬‭there‬‭are‬‭some‬‭segments‬‭of‬‭households‬‭(like‬‭rural‬‭households,‬‭and‬
‭households‬‭without‬‭mobile‬‭phones)‬‭likely‬‭to‬‭be‬‭left‬‭out.‬

‭6‬
‭ ttps://acumen.org/wp-content/uploads/2018/02/Acumen-Energy-Impact-Report.pdf‬‭,‬‭page‬‭7.‬
h
‭7‬
‭https://sunking.com/solar-lanterns/sun-king-pro-200/‬‭(a‬‭)‬
‭8‬
‭https://acumen.org/wp-content/uploads/2018/02/Acumen-Energy-Impact-Report.pdf‬‭,‬‭page‬‭28.‬
‭9‬
‭https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8923618/‬
‭10‬
‭https://d-lab.mit.edu/sites/default/files/inline-files/First-Steps-How-Early-Adopters-Climb-the-Solar-Energy-Ladder_White-Paper-1.pdf‬
‭11‬
‭https://www.sciencedirect.com/science/article/abs/pii/S0973082616310444‬

‭2‬
‭Your‬‭Distribution‬‭Challenge‬
‭ e‬‭will‬‭award‬‭up‬‭to‬‭$20,000‬‭to‬‭a‬‭team‬‭that‬‭creates‬‭a‬‭new‬‭social‬‭enterprise‬‭distributing‬‭pico‬
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‭solar‬‭lanterns‬‭to‬‭the‬‭most‬‭underserved‬‭communities‬‭outside‬‭existing‬‭solar‬‭delivery‬‭networks.‬

‭ ou‬‭must‬‭have‬‭a‬‭big‬‭vision.‬‭We‬‭wish‬‭to‬‭support‬‭entrepreneurs‬‭who‬‭have‬‭a‬‭goal‬‭of‬‭reaching‬‭at‬
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‭least‬‭100,000‬‭customers‬‭within‬‭5‬‭years,‬‭and‬‭ideally‬‭growing‬‭into‬‭a‬‭national‬‭or‬‭multi-national‬
‭scale.‬‭For‬‭example,‬‭in‬‭the‬‭past‬‭D-Prize‬‭has‬‭supported‬‭Altech‬‭(now‬‭the‬‭nation’s‬‭largest‬‭pico‬
‭distributor‬‭in‬‭the‬‭DRC),‬‭Easy‬‭Solar‬‭(now‬‭the‬‭nation’s‬‭largest‬‭pico‬‭distributor‬‭in‬‭Sierra‬‭Leone),‬
‭and‬‭many‬‭others.‬‭Our‬‭award‬‭is‬‭meant‬‭to‬‭be‬‭a‬‭first‬‭step‬‭toward‬‭this‬‭vision‬‭so‬‭that‬‭you‬‭can‬‭test‬
‭your‬‭idea‬‭on‬‭a‬‭small‬‭scale.‬

‭Designing‬‭Your‬‭Social‬‭Enterprise‬
‭ e‬‭believe‬‭a‬‭successful‬‭social‬‭enterprise‬‭must‬‭eventually‬‭solve‬‭a‬‭handful‬‭of‬‭challenges.‬‭Your‬
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‭pilot‬‭should‬‭plan‬‭to‬‭focus‬‭on‬‭building‬‭and‬‭testing‬‭just‬‭one,‬‭or‬‭at‬‭most‬‭just‬‭a‬‭few‬‭of‬‭these‬‭pieces.‬

‭I.‬‭Choosing‬‭a‬‭market‬‭for‬‭high‬‭impact‬
‭ e‬‭are‬‭most‬‭interested‬‭in‬‭supporting‬‭an‬‭enterprise‬‭that‬‭reaches‬‭communities‬‭that‬‭will‬‭otherwise‬
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‭not‬‭be‬‭served‬‭in‬‭the‬‭next‬‭decade.‬‭We‬‭have‬‭a‬‭bias‬‭for‬‭applicants‬‭targeting‬‭countries‬‭expected‬‭to‬
‭have‬‭the‬‭lowest‬‭electrification‬‭rates‬‭in‬‭the‬‭near‬‭future.‬‭We‬‭further‬‭have‬‭a‬‭bias‬‭for‬‭applicants‬
‭targeting‬‭rural‬‭communities,‬‭and‬‭communities‬‭with‬‭low‬‭mobile‬‭phone‬‭or‬‭mobile‬‭money‬
‭penetration‬‭rates‬‭within‬‭countries.‬

‭ e‬‭recommend‬‭this‬‭market‬‭profile‬‭for‬‭two‬‭reasons.‬‭You‬‭will‬‭capture‬‭the‬‭most‬‭impact‬‭because‬
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‭you‬‭will‬‭serve‬‭those‬‭most‬‭in‬‭need.‬‭You‬‭will‬‭also‬‭position‬‭your‬‭organization‬‭to‬‭be‬‭more‬
‭commercially‬‭successful.‬‭Our‬‭learnings‬‭from‬‭investing‬‭in‬‭this‬‭type‬‭of‬‭work‬‭over‬‭the‬‭last‬‭decade‬
‭suggests‬‭new‬‭solar‬‭enterprises‬‭scale‬‭fastest‬‭when‬‭operating‬‭in‬‭unsaturated‬‭markets,‬‭where‬
‭manufacturers‬‭have‬‭less‬‭control‬‭over‬‭margins,‬‭and‬‭competition‬‭for‬‭outside‬‭growth‬‭funding‬‭is‬
‭light.‬‭There‬‭are‬‭also‬‭larger‬‭funding‬‭opportunities‬‭to‬‭support‬‭your‬‭growth,‬‭such‬‭as‬‭from‬‭Acumen’s‬
‭Hardest‬‭to‬‭Reach‬‭Initiative.‬

‭ ‬‭good‬‭starting‬‭point‬‭for‬‭market‬‭selection‬‭is‬‭to‬‭consider‬‭which‬‭countries‬‭have‬‭the‬‭least‬
A
‭electrification‬‭solutions.‬‭As‬‭of‬‭2021,‬‭World‬‭Bank‬‭data‬‭indicates‬‭that‬‭approximately‬‭715‬‭million‬
‭people‬‭lack‬‭access‬‭to‬‭electricity,‬‭including‬‭over‬‭600‬‭million‬‭people‬‭in‬‭sub-Saharan‬‭Africa.‬‭This‬
‭World‬‭Bank‬‭online‬‭dataset‬‭also‬‭forecasts‬‭what‬‭electrification‬‭rates‬‭could‬‭be‬‭in‬‭the‬‭next‬‭decade.‬
‭You‬‭may‬‭also‬‭consider‬‭mobile‬‭penetration‬‭and‬‭mobile‬‭money‬‭penetration‬‭rates,‬‭as‬‭most‬‭existing‬
‭networks‬‭were‬‭built‬‭to‬‭use‬‭PAYGO‬‭mobile‬‭technology.‬

‭3‬
‭ s‬‭a‬‭second‬‭step,‬‭it’s‬‭worth‬‭considering‬‭that‬‭energy‬‭needs‬‭vary‬‭widely‬‭within‬‭countries.‬‭For‬
A
‭example,‬‭in‬‭Malawi,‬‭only‬‭6%‬‭of‬‭rural‬‭households‬‭had‬‭electricity‬‭access‬‭in‬‭2021,‬‭as‬‭compared‬
‭with‬‭54%‬‭of‬‭urban‬‭households.‬12

‭ inally,‬‭you‬‭can‬‭check‬‭the‬‭size‬‭of‬‭existing‬‭electricity‬‭investments,‬‭and‬‭target‬‭a‬‭country‬‭where‬‭a‬
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‭smaller‬‭amount‬‭of‬‭money‬‭has‬‭been‬‭invested‬‭per‬‭person‬‭without‬‭electricity‬‭access.‬‭Less‬‭money‬
‭currently‬‭invested‬‭in‬‭a‬‭country‬‭may‬‭indicate‬‭a‬‭greater‬‭need‬‭for‬‭more‬‭electricity‬‭solutions,‬
‭especially‬‭in‬‭rural‬‭areas.‬‭In‬‭the‬‭DRC,‬‭Ethiopia,‬‭South‬‭Sudan,‬‭Sudan,‬‭and‬‭Tanzania,‬‭less‬‭than‬‭$1‬
‭USD‬‭is‬‭invested‬‭into‬‭electricity‬‭per‬‭person‬‭without‬‭electricity‬‭access.‬13 ‭More‬‭detailed‬
‭country-level‬‭investment‬‭data‬‭can‬‭be‬‭found‬‭in‬‭this‬‭Sustainable‬‭Energy‬‭for‬‭All‬‭report‬‭.‬

‭II.‬‭Selecting‬‭a‬‭quality‬‭product‬
‭ e‬‭are‬‭most‬‭interested‬‭in‬‭supporting‬‭ventures‬‭that‬‭sell‬‭an‬‭existing‬‭solar‬‭product‬‭that‬‭is‬‭high‬
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‭quality‬‭and‬‭meets‬‭global‬‭industry‬‭standards.‬‭Drawing‬‭from‬‭extensive‬‭field‬‭testing,‬‭D-Prize‬
‭endorses‬‭Sun‬‭King‬‭(formerly‬‭Greenlight‬‭Planet)‬‭solar‬‭lamps.‬

‭ e‬‭are‬‭also‬‭interested‬‭in‬‭ventures‬‭innovating‬‭with‬‭financing‬‭options.‬‭We‬‭think‬‭there‬‭are‬‭two‬
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‭delivery‬‭constraints‬‭that‬‭could‬‭be‬‭solved‬‭by‬‭financing‬‭innovation:‬

‭-‬ ‭ any‬‭solar‬‭products‬‭now‬‭come‬‭equipped‬‭with‬‭PAYGO‬‭technology,‬‭which‬‭allows‬
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‭customers‬‭to‬‭pay‬‭for‬‭their‬‭lamps‬‭using‬‭installments‬‭through‬‭mobile‬‭money.‬‭We‬‭recognize‬
‭the‬‭value‬‭of‬‭PAYGO‬‭technology,‬‭but‬‭also‬‭understand‬‭this‬‭means‬‭communities‬‭without‬
‭high‬‭mobile‬‭phone‬‭and‬‭mobile‬‭money‬‭penetration‬‭could‬‭be‬‭left‬‭out.‬‭We‬‭are‬‭especially‬
‭interested‬‭to‬‭hear‬‭from‬‭entrepreneurs‬‭with‬‭a‬‭solution‬‭to‬‭this‬‭potential‬‭problem.‬

‭-‬ ‭ ome‬‭households‬‭are‬‭reluctant‬‭to‬‭switch‬‭away‬‭from‬‭kerosene‬‭lamps‬‭even‬‭when‬‭solar‬
S
‭options‬‭are‬‭available.‬‭One‬‭reason‬‭is‬‭that‬‭kerosene‬‭is‬‭more‬‭flexible‬‭than‬‭solar‬‭lamps;‬‭a‬
‭rural‬‭consumer‬‭might‬‭not‬‭want‬‭to‬‭pay‬‭for‬‭full‬‭recharges‬‭of‬‭a‬‭solar‬‭lamp‬‭(under‬‭the‬
‭PAYGO‬‭model),‬‭when‬‭they‬‭can‬‭instead‬‭buy‬‭and‬‭use‬‭small‬‭quantities‬‭of‬‭kerosene‬‭for‬
‭short‬‭durations‬‭of‬‭lighting‬‭as‬‭needed.‬‭We‬‭are‬‭interested‬‭in‬‭entrepreneurs‬‭who‬‭can‬
‭design‬‭solutions‬‭to‬‭offer‬‭this‬‭level‬‭of‬‭flexibility‬‭to‬‭customers‬‭who‬‭want‬‭it.‬14

‭-‬ ‭ e‬‭generally‬‭do‬‭not‬‭support‬‭ventures‬‭that‬‭accept‬‭non-financial‬‭forms‬‭of‬‭payment‬‭as‬‭part‬
W
‭of‬‭their‬‭financial‬‭service‬‭program,‬‭such‬‭as‬‭accepting‬‭grain‬‭and‬‭harvest‬‭as‬‭a‬‭form‬‭of‬
‭payment.‬

‭12‬
‭ ttps://data.worldbank.org/indicator/EG.ELC.ACCS.UR.ZS?year=2021‬
h
‭13‬
‭Hardest-to-Reach:‬‭Unlocking‬‭Clean‬‭Energy‬‭Investments‬‭for‬‭Those‬‭Living‬‭Beyond‬‭the‬‭Grid.‬‭Acumen‬‭Energy‬‭Investments,‬
‭2022.‬‭https://acumen.org/wp-content/uploads/Hardest-to-Reach-White-Paper.pdf‬‭(‬‭a‭)‬ ,‬‭page‬‭7‬
‭14‬
‭https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2782302‬

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‭III.‬‭Designing‬‭your‬‭sales‬‭model‬
‭We‬‭are‬‭interested‬‭in‬‭ventures‬‭that‬‭innovate‬‭on‬‭the‬‭field‬‭agent‬‭sales‬‭model.‬

‭ -Prize‬‭recommends‬‭your‬‭sales‬‭model‬‭be‬‭based‬‭on‬‭a‬‭field‬‭agent‬‭network,‬‭a‬‭model‬‭that‬‭our‬
D
‭internal‬‭research‬‭suggests‬‭is‬‭particularly‬‭successful‬‭vs.‬‭alternative‬‭models.‬‭We’ve‬‭seen‬‭that‬
‭deploying‬‭a‬‭team‬‭of‬‭sales‬‭agents‬‭requires‬‭less‬‭upfront‬‭capital‬‭vs‬‭other‬‭models,‬‭like‬‭building‬‭a‬
‭franchise‬‭network,‬‭or‬‭selling‬‭through‬‭existing‬‭shops.‬‭Sales‬‭models‬‭also‬‭meet‬‭other‬‭needs,‬‭such‬
‭as‬‭the‬‭higher‬‭level‬‭of‬‭trust‬‭that‬‭customers‬‭usually‬‭require‬‭before‬‭making‬‭this‬‭purchase,‬‭which‬‭is‬
‭naturally‬‭provided‬‭by‬‭localized‬‭agents‬‭known‬‭by‬‭the‬‭community.‬

‭ e‬‭think‬‭there‬‭is‬‭room‬‭for‬‭innovation‬‭within‬‭this‬‭model.‬‭For‬‭instance,‬‭we‬‭believe‬‭deeper‬
W
‭innovation‬‭on‬‭sales‬‭agent‬‭training,‬‭management‬‭and‬‭support‬‭processes,‬‭or‬‭on‬‭incentive‬
‭structures‬‭could‬‭produce‬‭a‬‭more‬‭effective‬‭enterprise.‬‭We‬‭have‬‭a‬‭bias‬‭for‬‭applicants‬‭who‬‭are‬
‭testing‬‭new‬‭ideas,‬‭and‬‭collecting‬‭data‬‭to‬‭show‬‭if‬‭these‬‭policies‬‭lead‬‭to‬‭more‬‭sales‬‭made‬‭per‬
‭sales‬‭agent.‬

‭IV.‬‭Financing‬‭your‬‭growth‬‭and‬‭sustainability‬
‭ e‬‭support‬‭ventures‬‭that‬‭are‬‭trying‬‭solutions‬‭to‬‭a‬‭financing‬‭challenge‬‭with‬‭working‬‭capital.‬
W
‭Almost‬‭all‬‭distributors‬‭sell‬‭lamps‬‭on‬‭credit.‬‭It‬‭can‬‭take‬‭months‬‭to‬‭collect‬‭full‬‭payments,‬‭and‬
‭during‬‭this‬‭time‬‭distributors‬‭don’t‬‭have‬‭cash‬‭on‬‭hand‬‭to‬‭order‬‭the‬‭next‬‭shipment‬‭of‬‭lamps.‬‭Bank‬
‭loans‬‭often‬‭aren’t‬‭available‬‭or‬‭aren’t‬‭economic.‬‭Without‬‭cash‬‭to‬‭place‬‭the‬‭next‬‭order‬‭of‬
‭inventory.‬‭sales‬‭dry‬‭up.‬

‭ ‬‭successful‬‭enterprise‬‭will‬‭use‬‭their‬‭pilot‬‭to‬‭test‬‭whether‬‭their‬‭financing‬‭structure‬‭can‬‭work‬‭at‬‭a‬
A
‭larger‬‭scale.‬‭An‬‭ideal‬‭applicant‬‭will‬‭have‬‭a‬‭basic‬‭financial‬‭model‬‭to‬‭demonstrate‬‭their‬‭ability‬‭to‬
‭grow‬‭despite‬‭existing‬‭constraints‬‭on‬‭working‬‭capital.‬‭Applicants‬‭who‬‭do‬‭not‬‭address‬‭this‬
‭concern‬‭around‬‭working‬‭capital‬‭will‬‭be‬‭declined.‬

‭Ready‬‭To‬‭Apply?‬
‭ ownload‬‭a‬‭Round‬‭1‬‭application‬‭packet‬‭at‬
D
‭https://www.d-prize.org/Round1Packet‬

‭Need‬‭More‬‭Information?‬
‭ earn‬‭more‬‭about‬‭the‬‭D-Prize‬‭timeline,‬‭evaluation‬‭process,‬‭and‬‭eligibility‬‭at‬‭http://d-prize.org‬
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‭View‬‭other‬‭challenge‬‭topics‬‭at‬‭http://d-prize.org/#challenges‬
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