There are millions of people in rural/remote areas who are not connected to the grid or do not have reliable electricity in India. It is very difficult to carry electrical wiring to all the parts of the country (or) it is very expensive, as there are small packets of rural settlements spread over large areas. To electrify these places, micro renewable energy technologies like solar, wind and hydro energy is often the best/cost-effective option.
A problem, when closely looked at, always provides an opportunity. An organization called SELCO (established in 1995) has recognized the huge opportunity provided by the current energy scenario in rural/remote unconnected areas of India and has tried to implement solar energy technologies to bring some electrification (predominantly lighting using solar PV) to these places.
The main challenge for implementing renewable energy in rural areas is the upfront investment required for installing RE technologies like solar panels and LED lights. Even though their running costs/maintenance costs are very low, arranging the initial investment might be a big challenge for many customers. This situation is compounded by the lack of willingness by banks/financial institutions to fund such projects.
To tackle this problem, SELCO has partnered with organizations like REEEP (Renewable Energy & Energy Efficiency Partnership) that enables poor consumers to approach and get loans from banks. Since local banks maybe reluctant to fund such projects, SELCO has found that they might be willing to give loans if people form themselves into groups and are backed by organizations like REEEP. Of course, confidence-building measures organized by SELCO, which front-ends the entire process definitely helps.
As mentioned in their about page, SELCO has more than 170 employees and 25 service stations across two Indian states of Karnataka and Gujarat and since their inception, they have sold/serviced/financed more than 1,15,000 renewable energy systems in these two states.
SELCO stands out for not only identifying an opportunity for renewable energy systems in rural/remote areas that are normally overlooked, but also for coordinating with all interested parties to ensure the success of their innovative micro-financing schemes. We clearly need more such initiatives in a power-deprived nation like India.
You can get further information about SELCO and their offerings/activities from their web-page: SELCO
