Today, mobile phone subscriptions are more common than grid connections in Sub-Saharan Africa. About 700 million people in the region have a mobile phone, while only 450 million have access to reliable electricity.That’s because wireless telecommunication companies allowed countries to skip over 19th-century architecture to 21st-century cellular towers and cheap handsets. Now energy startups like Bboxx, d.light and Niwa are betting they can do that for electricity.Mansoor Hamayun, one of three co-founders at Bboxx, said he started the company in 2010 because about 1.2 billion people around the world still lacked access to reliable electricity and plans to change that would take decades. Bboxx claims it will deliver electricity to 20 million people by 2020, and it’s only getting started. “Africa has a history of leapfrogging,” says Hamayun. “[Although] it will take longer to for everyone to get power than a phone, Africa absorbs innovation so quickly because it’s desperate for it.”

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Bboxx is effectively an energy utility. In a world used to government-run or -regulated agencies that build out cables, wires, and power plants, a new distributed model is evolving. In rural areas with little or no infrastructure, Bboxx uses pay-as-you go mobile payments and cellular connections to install cheap batteries and solar panels on buildings without selling any equipment. Customers buy electrification packages.Only a few US dollars per month is enough to lease solar panels, batteries, and high-efficiency appliances. Local installers wire up the buildings.A remote cellular connection (2G or an SMS backup connectivity) turns the system on or off based on payments, not unlike a cellular package. Taxi drivers may pay daily, while farmers can pre-pay months ahead after a good harvest.

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Homes and businesses can generate and store much of their own power. Microgrids will share and store power among customers rather a hub-and-spoke model dispatching electricity from large power plants. The grid will repurpose itself to ensure reliability and aid transmission, as solar and battery account for most daily consumption (also known as partial-grid defection).A competitive market to generate one’s own electricity has never existed as a real alternative to the grid. Now it’s everywhere.In relatively affluent countries, companies like Sunrun and Sunova are installing home solar and storage systems from the US to Europe as falling prices have made them cost-competitive or cheaper than grid electricity while improving reliability. For the 1.1 billion poor still without electricity, Africa is leading the way.