Lighting lives

OBJECTIVE

– To create a sustainable business by promoting energy services in the underserved and un-served areas.

– To build a strong service network in the rural areas for solar systems.

– To build a sustainable linkage between modern energy services and income generating activities.

WHAT DID SELCO DO TO REACH THE POOR

– Need based Technology

• Designed need based products leading to income generation• Better quality of life.

– Appropriate Financing

• Financing for the poor needs to be designed according to their cash-flow.

– Either on the savings or the extra earnings• Piggy-backed on local Financial Institutions.

– Innovative processes and business models• Created entrepreneurs to deliver energy services to street vendors.• Established local Energy service centers to provide door step services.

SNAPSHOT TILL DATE

• More than 160,000 households as clients

• 5,200 institutions as clients

• 41 Energy Service Centers

• Working with more than 20 Financial Institutions and NGOs

IMPACT

SOCIAL IMPACT

• Energy and financial inclusion of the poor.

• Access to clean light has improved the standard of living, creating opportunities for income generation, better education for children and many more.

• Social businesses powered by SELCO save from their expenditure on kerosene/LPG and get better cleaner light to attract more customers leading to increased business.

ENVIRONMENTAL IMPACT

• Saving thousands of ltr of kerosene every day by use of solar lights.

• Ultimately reducing greenhouse gas emissions and contributing to a greener and cleaner planet.

FINANCING MODEL STAKEHOLDERS

Typical chain of an energy delivery services setup of SELCO.

SELCO’s Role

• Demo of Technology

• Accessing the needs

• Developing the need based

product

• Partnering with local financial

institutions

• Installation of the system

• After Sales Service

User’s Reasons

• Lighting for Study

• Powering small motors

• For Income Generating activities

• Cleaner

• Safer

• No maintenance

Financial Institution’s Role

• Accessing the credit worthiness of the client

• Creating the appropriate financial product

• Partnering with SELCO to meet the needs.

• Collection of loan installments

FINANCING SCOPE/MODELS SMALL BUSINESS

Solar lights for cricket bat makers in Bangalore slums

STUDENT LIGHT- A PROCESS INNOVATION TO PROMOTE QUALITY EDUCATION

GROUP FINANCING-INDIVIDUAL’S BENEFIT

Process-Financial-Service Innovation

END USERNGOSELCO

Customized Solar Home lighting

systems

SHG

Households

Households

Zero interest Loan

Service Associate

Service Training

SHGsSHGsSHGs

CBO,

NGO

Service provider

(Selco)

Nodal Agency NABARD

MFIs,

Fis

(Banks,RRB

s)

Model

Interaction Diagram: Among the Stake holders

Major Financial Innovations

• Margin money facilitation

• Interest Subsidy scheme

• Risk guarantee

• Revolving fund

• Matching the cash flow cycle

Challenges..• Financial linkages

• Process Standardization (Individual/Group/SHG/BPL)

• Micro Loaning (Below 10000/-)

• De-interest among the Line Manager (The Dynamics)

• Stamp Duty

• High interest rates with no subsidy( For private MF agency)

• A good recovery channel (Other stakeholder NGOs, Grass root organisation) Vs Cost

• Subsidy /Bench Mark • Getting Subsidy (NABARD Vs BANK VS CUSTOMER/BENIFICARYIES)

• Clear Instruction/Multiple interference (proper education training)

• Un-organised Vs Organised Market Players• Price sensitive market Quality v/s Cost

Challenges..• Technical Skills

• Utilizing the present resources (a course on solar)

• ITI

• Cost• Module cost is going down is this enough?

• Other accessories

• VAT/CST

• Out reach cost

• Alignment and Protection of Interest of the Stake holders

• “ A focused energy financing wing”

THANK YOU

SELCO Solar Light Pvt. Ltd.

#742, 15th Cross, 6th Phase, JP Nagar, Bangalore 560078, ph- 080- 26654 509 / 510, selco@selco-india.com

www. Selco-india.com