Lessons learnt: a more nuanced market segmentation between on grid and off grid
Whereas M-KOPA addresses the off-grid customer base with solar home systems, Kenya Power and Lighting Company (KPLC) addresses the on-grid customer base, providing power through traditional grid infrastructure directly into the homes of those who have been connected.
Much of the discussion around energy access is focused on these two categories, dividing customers and households purely by grid connections.
One of the central findings of M-KOPA’s Shell Foundation funded market analyses is of a much more nuanced market segmentation between on grid and off grid; M-KOPA identified three additional and distinct groups of customers that do not fit cleanly into either category. These three segments have been titled:
- “under grid”,
- “idle grid”,
- “bad grid”,
and each has slightly different customer pain points that M-KOPA and companies like it can address.