Skip to main content
About HEC About HEC Faculty & Research Faculty & Research Master’s programs Master’s programs MBA Programs MBA Programs PhD Program PhD Program Executive Education Executive Education Summer School Summer School HEC Online HEC Online About HEC Overview Overview Who
We Are Who
We Are
Egalité des chances Egalité des chances HEC Talents HEC Talents International International Campus
Life Campus
Sustainability Sustainability Diversity
& Inclusion Diversity
& Inclusion
Stories Stories The HEC
Foundation The HEC
Coronavirus Coronavirus
Faculty & Research Overview Overview Faculty Directory Faculty Directory Departments Departments Centers Centers Chairs Chairs Knowledge Knowledge Master’s programs Master in
Management Master in
Master in
International Finance Master in
International Finance
& Masters MS
& Masters
Ecole Polytechnique
-HEC programs Ecole Polytechnique
-HEC programs
programs Dual-Degree
students Exchange
Certificates Certificates Student
Life Student
MBA Programs MBA MBA Executive MBA Executive MBA TRIUM EMBA TRIUM EMBA PhD Program Overview Overview HEC Difference HEC Difference Program details Program details Research areas Research areas HEC Community HEC Community Placement Placement Job Market Job Market Admissions Admissions Financing Financing Executive Education Executive Masters Executive Masters Executive Certificates Executive Certificates Executive short programs Executive short programs Online Online Companies Companies Executive MBA Executive MBA Infinity Pass Infinity Pass Summer School Youth Programs Youth Programs Summer programs Summer programs HEC Online Overview Overview Degree Program Degree Program Executive certificates Executive certificates MOOCs MOOCs Summer Programs Summer Programs


Schneider Electric’s Pay-As-You-Go Solar Home Systems Fund in Kenya

Case Study
Published on:

Schneider Electric’s pay-as-you-go solar home systems fund in Kenya case, written by HEC Paris Professor Luc Paugam and Sookyoung Lee of HEC Paris S&O Institute has just been released on the Case Centre platform. This case study explores the concept of hybrid organization, which blurs traditional boundaries between nonprofit and for-profit organizations, reconciling profit motives with community needs. 

solar panels

Schneider Electric is a leading provider of energy and automation digital solutions for efficiency and sustainability in homes and buildings worldwide, employing more than 135,000 employees.  The company has an investment fund for electrification projects for countries such as Kenya.  

A key concern in the electricity market of rural areas in developing markets is that potential customers do not have enough cash on-hand to purchase and own solar-home-systems equipment directly.  This is where Schneider Electric’s investment fund comes in to invest in local companies and start-ups in the industry, while requiring a minimal return on investment. 

why this case?

The case examines the concept of hybrid organization, which blurs traditional boundaries between nonprofit and for-profit organizations. The business model of pay-as-you-go solar home systems companies in Kenya is based on social entrepreneurs in the solar energy sector who wish to achieve social and communities’ objectives balanced with a minimal return on investment. 

Two key challenges faced by such these companies are attracting external financing which is critical and balancing the expected returns from capital providers such as Schneider Electric. 

The case describes three different investment opportunities that the Schneider fund is currently considering. Students are asked to make a decision, taking the role of the fund manager on the supervisory board. The students are challenged to analyze the businesses and forecast expected social impact and future financial performance of these companies. 

Subscribe button for Knowledhe@HEC newsletter

Newsletter knowledge

A monthly brief in your email box and 3 issues of the book per year.

follow us

Insights @HECParis School of #Management

Follow Us

Support Research

Our articles are produced thanks to our reader's support