Worldwide, nearly 1.4 billion peoplelive without access to electricity and nearly 2.7 billionpeople use traditional biomass fuels for cooking. Onechallenge to increasing reliable energy access for the pooris their limited ability to pay the up-front connection feesfor electricity and natural gas. Output-based aid (OBA)approaches in which subsidy payments are linked topredefined outputs, such as installation of a workinghousehold connection or solar home system offers a potentialsolution that has increased energy access for more than 6.8million poor beneficiaries. A recent World Bank review ofOBA concludes that there is a case to adopt OBA more widely,where there is an enabling environment (Mumssen, Johannes,and Kumar, 2010). This note discusses lessons learned andbest practices in implementing OBA in the energy sector.