Solar products for poor rural communities as a business

Lessons from a successful project in Uttar Pradesh, India

Johannes Urpelainen, Semee Yoon

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

Can sales of solar products and services be a commercially viable business in poor rural communities? Although enthusiasm for off-grid electrification among researchers and practitioners is widespread, the determinants of commercial success in this domain remain poorly understood. This article reports results and lessons from a successful field project in Uttar Pradesh, India. In collaboration with a local social enterprise, Boond Engineering and Development, a small investment of USD 5000 was made to establish an energy center in the Unnao district of the state. The energy center became profitable immediately and generated seven dollars of business in solar home systems for every dollar invested during the 6-month evaluation period. Factors contributing to the success of the project included robust marketing, a strong banking partnership, the high quality of products, and continuous evaluation of staff performance. Challenges to sales of solar products included a bias in sales toward large solar home systems, the limited access to finance for poor households, and access to working capital. Overall, the energy center model holds considerable promise for alleviating energy poverty in rural India on a large scale.

Original languageEnglish
Pages (from-to)617-626
Number of pages10
JournalClean Technologies and Environmental Policy
Volume18
Issue number2
DOIs
Publication statusPublished - 2016 Feb 1

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Sales
energy
Industry
Finance
electrification
Marketing
banking
finance
marketing
poverty
engineering
project
product
evaluation

All Science Journal Classification (ASJC) codes

  • Environmental Engineering
  • Environmental Chemistry
  • Management, Monitoring, Policy and Law

Cite this

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Solar products for poor rural communities as a business : Lessons from a successful project in Uttar Pradesh, India. / Urpelainen, Johannes; Yoon, Semee.

In: Clean Technologies and Environmental Policy, Vol. 18, No. 2, 01.02.2016, p. 617-626.

Research output: Contribution to journalArticle

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