SELCO Solar Light (P)

SELCO has pioneered energy access to families living below the poverty line through a combination of customized energy service systems, innovative financing and an understanding of market needs of different user groups. Rather than focus on a saturated solar technology production field, SELCO brings the sustainable technology to the base of the pyramid using financing mechanisms that render it affordable and productive for the end user. To do this, SELCO pioneers links between technology, financing, energy services, income generation and quality of life.

The organization runs its grassroots operations through 28 Energy Service Centres (ESCs). The centres market, sell, install and service SELCO’s products. The company’s core business is the sale of energy systems that provide electricity for lighting, water pumping, clean cooking, communications, computing, entertainment and small business appliances. The company works with banks to structure innovative financing for customers. A standard SELCO four-light system, for example, costs users approximately $380. A user will usually pay a small down payment and then monthly instalments of $6-8 over five years. The user can also pay by generating extra income resulting from additional work made possible with the light and savings from eliminating costly fossil fuels with customized payment schedules.

SELCO further spreads the sustainable technology through “business associates.” These entrepreneurs lease solar-powered lights to street vendors in the evening. SELCO has reached 130,000 clients across the Indian states of Karnataka, Kerala and Gujarat. Energy services have led to improvements in the quality of life for thousands of people, including better education outcomes for children who can now study at night.