Dr H. Harish Hande—SELCO
SELCO’s innovations rely on three tenets: the poor can afford sustainable technologies; the poor can maintain sustainable technologies; and it is possible to run a commercially viable venture serving the needs of the poor. Photograph courtesy SELCO
The Organization
Harish Hande has pioneered access to rural solar electrification for below poverty line families through a combination of customized lighting systems, innovative doorstep financing, and an understanding of market needs of different user groups. To further the effects, he has created SELCO entrepreneurs who distribute solar powered lights to low-income communities. His company SELCO pioneers linkages between technology, financing, energy services, income generation and the quality of life for its customers.
The commercial sector has traditionally avoided the rural sector, deeming it un-profitable and risky. This has led many of the 800 million poor to turn to exploitative moneylenders. While the India microfinance industry has thus far provided approximately Rs 200 billion in capital already, it is estimated that the poor still need 10 times this amount!
The Innovation
SELCO’s innovations rely on three tenets: the poor can afford sustainable technologies; the poor can maintain sustainable technologies; and it is possible to run a commercially viable venture serving the needs of the poor.
SELCO creates low-cost customized lighting solutions for the poor. Its core business is the sale of photovoltaic (PV) solar-home-systems (SHS) that provide lighting but also are suitable for radios and fans. A system is customized and installed by a SELCO technician to meet the needs and budget of a customer.
A standard four light SHS costs approximately INR 18,000. To bring this technology to Base of the Pyramid communities, SELCO works with banks and local MFIs to develop innovative doorstep financing for its customers. For example, a user will pay a small down payment and then pay monthly installments of INR 300 to 400 over five years. The user can pay from extra income generated through additional work made possible with the solar light and through savings from eliminating costly kerosene (as much as INR 420 a month). Collection schemes are also fitted. While farmers prefer to pay annually after their crop cycle, street vendors choose to pay INR 10 a day instead of INR 300 a month.
SELCO has forged partnerships with nine regional rural banks, commercial banks like Canara and Syndicate Banks, rural farmer co-operatives and nine NGOs to develop financing solutions.
In addition, SELCO creates livelihoods by creating ‘business associates’. More than 22 business solar entrepreneurs purchase 40 to 160 solar kits on a five year loan from banks. They then lease these batteries and the light fixtures to local night vendors who sell their wares in open markets (for example, vegetable and fruit sellers). The vendors normally spend INR 14 a day for kerosene. But the solar vendor is able to secure more business due to better lighting under safe conditions for only INR 12 a day.
Recently, SELCO entered into a partnership with SEWA Bank to innovate products for its 300,000 women clients. The products developed for SEWA members include a miner’s cap that is rechargeable with solar power. The response has been tremendous, especially from rose cutters, masons, and midwives who work at night and/or pre-dawn.
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