BS: Solar power on. Bharat on: Feb 26, 2008

Entrepreneurs and NGOs find innovative models to take solar energy to rural homes in the country.

As dusk slowly lapses into night, it is time for millions to call it a day. For, before the night falls, farmers with their cattle have to be at home, children have to finish studies, housewives have to finish the household chores, as life comes to a standstill once it is dark.

‘Power on. India on’ might be true for cities. But not for 400 million people in the villages of India.

According to the Central Electricity Authority data, the targeted capacity addition between April 2007 and December 2007 was 13,152 Mw. Of this, only 6,485 Mw could be achieved during the period. But more and more entrepreneurs are trying in different ways to tap solar energy to light up homes in rural hamlets.

Amit Chugh, managing director of CosmosIgnite Innovations India, has already lined up innovative products using solar energy. Mightylight, a solar-powered lamp is already in use in Orissa, Rajasthan and Jharkhand.

“We are not here for charity. Our market is the developing world where 1.6 billion people are forced to use fuel/kerosene-based light,” said Chugh.

Chugh claims that the light emitting diode (LED) technology that is being used by them is best suited to the rural population due to its long-life.

“We have to cater to our customer base that is the rural India. Our R&D in 2003-2004 showed that a technology that is truly different and scalable is required. The technology was LED. It will not fuse for twenty years and is validated from the US department of energy, World Bank, and IFC,” said Chugh.

However, striking a balance between the huge R&D budget and pricing the product for the rural poor was a challenge for Chugh.

“When we started, we had a huge R&D budget. But our target is to provide the lamp for Rs 1,000 less than the Government of India’s solar lamp at Rs 3,600. So, our product at Rs 2,600 is now marketed through two models, installment and micro finance,” said Chugh.

“Installment payment involves having a revolving fund mechanism by partner organisations. Micro finance entails having micro credit by partner organisations which is paid back in sums of only about Rs 100-150 per month — only Rs 5 per day), which is less than or equal to the amount spent on buying kerosene oil daily,” said Chugh.

Apart from the two commercial modes, the product is distributed with the help of partner NGOs and charitable organisations.

Chugh says, “We have benefited 35,000 people so far and are targeting 400,000 people next year and then 2 million rural people in the future.”

The company’s solar lights have brought a ray of hope to the lives of the forest dwellers of Ranthambhore National park who were rehalibilitated in Kailashpuri in Rajasthan three decades ago.

“Even though they left their homes, the government has not done anything for them. They have been devoid of all amenities for years. In the first phase, we distributed the lights on a priority basis to families which have children who study. By now, we have distributed 100 lamps in the area,” said Madhu Bhatnagar, head (environment programme), Shriram Schools.

A similar initiative, though in a different model, is being taken by The Energy Research Institute (TERI).

The solar part is segregated from the lantern. A charging station is installed at the village where villagers can come and get their batteries charged at an amount ranging from Rs 3 to Rs 5, varying from place to place. The villagers do not own the lamp, rather take it as and when required after paying the charging fee.

“Our 500 lamps are operational in around ten villages in the country. As of now, four villages are being benefited in West Bengal. There are 200 lamps rotating among a population of 4,000 people. We are planning to enter Haryana and Assam also,” said Akanksha Chaurey, associate director (rural electrification), TERI.

The distribution model of TERI is based on a sponsorship system. A corporate house can sponsor 50 lamps a village at Rs 300,000. TERI has recently got sponsorship for one village each by DFID and GE. Swiss Agency for Development cooperation and HSBC have sponsored two villages each ie. 200 lamps.

“Installation of the battery charging station and distribution of the lamps costs around Rs 2.5 lakh to Rs 3 lakh,” said Chaurey.

TERI is also ensuring to scale up its initiative and operations through entrepreneurship development and make it sustainable.

“We identify a village entrepreneur to run the battery charging stations. This creates employment for the individual,” said Chaurey.

TERI, which is bullish on solar energy as an alternative source for energy, has approached the Government with measures to address the problem of darkness in the rural areas. “We will approach the government to provide this as a lighting option in the villages where there are no other means,” she said.

“We are, however, not promoting that lighting is electrification. But in the remote areas where the people do not have any other means, there is no rationale behind installing grids just to provide basic lighting. This can be done even by solar lamps,” she added.

Harish Hande, the founder of Solar Electric Company or SELCO and winner of the Social Entrepreneurship award this year, has found a unique model to popularise solar energy in 91,000 un-lit villages in Karnataka.

His model for making solar light affordable is to tailor energy products to the need of the customer. So, if a family can afford to spend only Rs 3,000 then he provides them a single light system. This is then upgraded gradually as and when the family is able to spend more.

SELCO is planning to target villages in Gujarat where it has tied up with SEWA Bank to use micro-credit to take solar energy to villages. SELCO has 25 service stations in Karantaka where it has placed trained technicians who are always at the beck and call of customers for servicing.

Hande feels that it is important that the company stays in touch with the end user rather than use dealers to push products.

“For, if a system does not work in these initial days, then the blame will come to solar energy not our company. And we should not allow that,” says Hande.