Lower tariffs significantly increase consumption, and these high consumption levels are sustained over time. We are seeing that mini-grids customers have maintained ~1.5-3x their baseline consumption 3+ years after tariff reduction. This is good news for developers and donors: it means tariff reduction programs can sustainably be launched at scale; since customers will maintain the high consumption levels required to justify such programs.
Mini-Grid Tariff Reduction Innovation Insight – CrossBoundary Innovation Lab