How does fee-for-service work?

FRES is using the fee-for-service concept, a standardised commercial business model that can easily be fine-tuned, replicated and rolled-out.

Customers pay a monthly fee for a chosen number of lamps and sockets. FRES companies install and maintain ownership of the installed hardware. FRES companies takes care of maintenance and replacement investments, thereby ensuring a sustainable long-term electricity solution for the customer.

Depending on the situation and the energy demands, we work with two types of solar energy systems: Solar Home Systems (SHS) or mini-grids.

Service levels

SHS customers can choose between service levels depending on the number of lamps and power sockets they require, and the affordability of the associated monthly fee. Customers of mini-grids pay a standard fixed fee for the connection as well as an amount per kWh consumed. The costs for customers of the delivered services are on par with or lower than the traditional alternatives (candles, car batteries or lamp oil). Energy shops are set up for customer service needs and payments.

Benefits of the fee-for-service concept are:

  • Affordability: no initial capital investment and a cost-effective payment structure for the customer.
  • After-sales maintenance and replacement guarantee for at least 20 years, ensuring the client has no (unexpected) expenses for repair and/or replacement.
  • Ease of use: clients do not have to install the system themselves.
  • Easier access to hard to find, expensive new technologies such as efficient lamps.

Read more about the solar energy systems we use within the fee-for-service business model.