Predicting Payment Behavior in PAYGo: Machine Learning Can Power Customer Retention

Customer churn is a major headache for most companies and threatens to put the brakes on the red-hot growth of the pay-as-you-go (PAYGo) solar sector. With over 1 million units sold in the last 5 years and over 50,000 units installed each month, the PAYGo model makes solar affordable for end-users and provides sufficient margin for providers to scale last-mile distribution. However, for the model to succeed PAYGo operators must retain customers and build a base of loyal and engaged customers. Our project with Zola Electric (formerly Off Grid Electric) demonstrates that machine learning can help them do so. PAYGo operators make money from installments and/or fees as end-consumers pay off solar assets over 1 to 3 years.