1. SELCO : The Solar Electric Light Company Mayank Prabhakar - H13086 Roopan Roy John - B13168

2. Energy Services in India 400 million Indians have no access to electricity. More than Half of rural households are not connected to state electricity grids World Bank Report Reliable Energy Services leads to Development of Family. Upliftment of Quality of Life. Better Education. Healthy Working Conditions. Increased Income. Chronic cooking fuel shortages Lack of power to undertake Income Generation Activities Lack of Reliable Lighting Electricity Deficit Distribution Constraints Paradox People who really need alternate energy options cannot procure them. 3. Selco SELCO, for-profit venture, was established in 1995 to disprove the following myths: Myth 1. Poor people cannot afford sustainable technologies. Myth 2. Poor people cannot maintain sustainable technologies. Myth 3. Social ventures cannot be run as commercial entities. Value Proposition Including the financing requirement in the overall product package. Innovate not only in the usage of technology, financing methodology, modes of marketing etc., but also in ways of linkage innovation. 4. Business Model :A for-profit Social Enterprise 5. Business Model: Innovative Linkages Poverty Increased Income Generation Income Generating Activities Energy Services Alleviate By By Surely Require Energy Services Sustainable Technologies Reliable Supply Chain Need Need to be provided By Poverty Alleviation & Energy Services Technology & Energy Services 6. Business Model: Innovative Linkages Sustainable Technology Energy Services End User Finance Sustainable Technology Energy Services End User Third Party Financing End User Energy Services - Technology 7. Business Model: Innovative Linkages User Payment Sources & Loan Repayment 8. Product Design Customized to meet the expectations of the specific clients Philosophy Categories A SELCO photovoltaic solar home system consists of a panel, a battery and a charge regulator. Panels charge during day and works for 12hrs without being charged. 9. Conceptual Tools to measure/assess the impact and effectiveness of Social Enterprise This tool aims to understand the impact of entrepreneurs receiving funds to do social sector work. Ashoka Measuring Effectiveness Questionnaire This tool quantifies a potential investment's social output and compares it to the universe of existing charitable options for that explicit social issue. BACO Ratio Base of Pyramid (BoP) Impact Assessment Framework is a method that helps organizations better understand and improve their on-the-ground poverty alleviation impacts. Base of Pyramid Impact Assessment Framework 10. Need for innovations Q. Why do the under served need Innovation? Q. Why has it not happened? Financial Risk Technology Innovations Lack of Commitment 11. Service SELCO has the potential to utilize its distribution network and customer relationships to be at intersection of product, service, and finance: Selling high quality, branded consumer durable products coupled with after-sales service and consumer financing Product Finance Sustainable High-Quality Branded Consumer Durables Empowering customers Installation and after- sales service at the Customer Home on all company products sold Matching the cash-flow SELCO = Technology + Financial Instruments Expanded SELCO Vision: Moving beyond Strictly Solar 12. Organizational Framework 13. Philosophy MYTH #1 The poor cannot afford technology MYTH #2 The poor cannot maintain technology MYTH #3 Social ventures cannot be commercial entities 14. Growth Story 2008 2009 2010 2011 2012 135,000 121,000 105,000 92,000 81,000 Number of systems installed by Selco 2013 160,000 15. customization Wants can be standardized; needs have to be customized 16. matching needs + market linkage The moral of the story is if you can create a product that matches [people's] needs, it does not matter how poor [they] are, there will be a market for it an increase in productivity, not income; She has no market for those extra baskets. There is no market linkage. * wants SELCO to address the entire supply chain surrounding a product 17. Typical chain of an energy delivery services setup of SELCO. SELCOs Role Demo of Technology Accessing the needs Developing the need based product Partnering with local financial institutions Installation of the system After Sales Service Users Reasons Lighting for Study Powering small motors For Income Generating activities Cleaner Safer No maintenance Financial Institutions Role Accessing the credit worthiness of the client Creating the appropriate financial product Partnering with SELCO to meet the needs. Collection of loan installments 18. : Matching money with missionINVESTORS 19. Continuity Tailor-made Payback/ Financing(Creative Financing) Employees Designing products for the poor (tailor-made solutions) Innovative customization Building Assets for the poor 20. Scaling Up & Challenges Is it about numbers in Decentralized energy? Lateral or deeper? Customization vs. Commoditization? Big SELCO or numerous SELCOs Replicate or scale? 21. Leadership and Personal Qualities Empowering the poor Bank accounts / solar loan/ Siddi community (gujarat/karanataka) Point of View: BOTP as an asset and not a market Views BOTP as money goes IN, product comes OUT Th!nk Sustainable Cross pollinative innovation ~ light in a tiffinbox Multi-pronged problem solving! 22. Open source Model: Replicate, rather than scale up For and By the people who need it Solution is the best form of protest Hands-on Leadership Attention to detail Emotional/Empathetic Leadership and Personal Qualities