Case – StudyTitle : SELCO - Bringing Light into People’s Lives

Ms Sheetal Mahendher , Faculty – Systems, Mount Carmel Institute of Mangement, Bangalore.

Aim : The case’s central consideration is to show how well a natural resource can be used to meet the basic human need without disturbing the natural environment. Linking income generating activities with sustainable energy solutions has improved the quality of life for several members of underserved households by providing affordable channels to procure the technology thereby increasing work hours and hence productivity.

Sustainable development is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but in the indefinite future.

SELCO Solar Pvt. Ltd, a social enterprise established in 1995, provides sustainable energy solutions and services to under-served households and businesses .

It was conceived in an effort to dispel three myths

1) Poor people cannot afford sustainable technologies; 2) Poor people cannot maintain sustainable technologies; 3) Social ventures cannot be run as commercial entities.

SELCO’s key features:•Creating products based on end user needs: going beyond just being a technology supplier and customizing their products based on individual needs. •Installation and after-sales service: dedicating regional energy service centers to ensure prompt maintenance and service. •Standardized financing packages: creating channels for end users to afford systems based on their cash flow. •SELCO currently employs about 140 employees in Karnataka and Gujarat spread across 21 energy service centers. Since 1995, we have sold, serviced and financed over 95,000 solar systems to our customers.

A brief about the management team:Dr. H Harish Hande, Managing Director, SELCO-India, which he co-founded with Neville Williams in 1995. Dr. Hande earned his Doctorate in energy engineering (solar specialty) at the University of Massachusetts (Lowell). He has an undergraduate degree in Energy Engineering from the Indian Institute of Technology (IIT), Kharagpur

Thomas Pullenkav, Vice President, has a graduate degree in Physics and is an alumnus of Institute of Rural Management (IRMA), Anand.

The SELCO People

SELCO’s core success lies in its inner circle of dedicated employees across 21 branches.

4 Regional Sales Managers,

8 Senior Managers,

21 Branch Managers, 32 Sales Executives,

40 Customer Support Executives and

18 Office Administrators in addition to the other members of the Projects, Innovations and Finance departments.

Technology

Their systems utilize solar photovoltaic (PV) modules to provide electricity for lighting, water pumping, communications, computing, entertainment, and small business appliances. Apart from their standardized products , they customize their existing products to suit individual customer needs.•Solar lighting (CFL and LED)•Indoor home lighting•Outdoor home lighting•Solar Headlamp

Finance

Over the years, SELCO has forged partnerships with nine regional rural banks, commercial banks, NGOs and rural farmer cooperatives to develop financial solutions.

Credit Terms:Interest rates are based on the credit source and range from 5% to 14%. Customers typically put between 10-25% down, paying the balance over three to five years.

Services Upon the purchase of every system, each SELCO customer receives the following services: •Custom system design •Installation •Training on proper system use •After-sales maintenance and support

•. In the process, they have built long term relationships with over 85,000+ satisfied customers, mostly rural.

Impact

Few examples are :•People using solar light to begin her daily sale of vegetables at a local night market.•Feeding mulberry leaves to silk worms under solar lights instead of smoky kerosene lamps.•A woman entrepreneur selling solar lights to the poor nomadic tribal families in her village.

Solar electricity at highway shops and telephone booths have helped people increase their income.

Better conditions for people to work at night with the installation of solar lights.

•Solar powered sewing machines have helped people to provide high quality training without interruptions from power failures.•Solar lit roadside eateries are a welcome stop for highway travelers.

Challenge

In its nascent stage, it took five years for SELCO to provide solar lighting for 500 houses. Creating awareness about the company was not the challenge, it was generating an understanding about better alternatives to unreliable rural lighting.

Improving quality of life

Providing high quality customized products

Milestone Since 1995, SELCO has: 21 energy service centers in Karnataka and Gujarat, India .

SELCO focuses on its customers and provides them with the best energy products, service, and access to affordable finance.

Why do the under served need Innovation?

Why has it not happened?

Technology Partners Massachusetts Institute of Technology (MIT- D Labs)

D-Lab: Development, Design and Dissemination is a design studio course in which students work on international development projects for underserved communities.

Engines and Energy Conversion Lab, Colorado State University

EECL delivers significant, meaningful solutions to meet the global energy challenges using market driven approaches.

Community Based Organisation 1. Bharitiya Vikas Trust Registered in 1978, the Trust is involved in rural development programs that encourage socio economic changes in India.2. Bangalore Rural Educational and Development Society, BREADS3. Shree Kshethra Dharmasthala Rural Development Project, (SKDRDP)

Finance Institutions Syndicate BankKarnataka Vikas Grameen bank (KVGB)Vijaya BankCanara BankPragathi Grameen bankKrishna Grameen bankVavasahaya Sahakari Seva Sangha Bank Niyamitha

Carbon Trading The Carbon Neutral Company

Works with commercial organizations and individuals to offer services in carbon consulting and carbon offsetting – both designed to help reduce CO2 emissions, and deliver commercial, personal and environmental benefit

International Partnership Global Village Energy Partnership (GVEP)Renewable Energy and Energy Efficiency Partnership (REEEP)UNEPClinton Global Initiative Nand and Jeet Khemka FoundationAshden Awards

Volunteer Engineers Without BordersWorld Research Institute

Academic Institution Manipal Institute of TechnologyINSEADMIT Sloan School of ManagementColumbia Business SchoolStephen M. Ross School of Business, University of MichiganIndian Institute of Management, Ahmedabad

Conclusion:

The case study clearly gives an idea how people can think differently and become successful entrepreneurs by helping many underserved people and also maintaining the environmental balance .

Selco takes up research and development work for other projects and earn good money to keep their business going so that they can help the underserved to be able to get products at bare minimum costs .

They also get some money by trading their carbon points .