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SELCO India
Bangalore, Karnataka, India

SELCO India: Proving the Poor Could Pay for Solar

Energy & UtilitiesClimate Tech

An IIT engineer returned from the US to disprove three myths: that the poor can't afford solar, can't maintain technology, and social enterprises can't be profitable. 29 years and 2 million installations later, the myths are dead.

The Shift

The Old Way: Wait for the Grid (or Burn Kerosene)

India's approach to rural electrification was centralized: extend the grid decade by decade. Meanwhile, hundreds of millions burned kerosene.

  • 800+ million people globally without electricity access
  • Grid extension takes decades and billions in infrastructure
  • Kerosene burns 8-10% of rural household income
  • Indoor air pollution from kerosene kills 4+ million annually

The New Way: Decentralized Solar + Microfinance

SELCO designs solar systems customized to each customer's needs—street vendors, midwives, farmers, tailors—and partners with microfinance institutions for loans matching customers' cash flows.

  • 50+ customized solar products for different livelihoods
  • Microfinance partnerships match loan payments to cash flows
  • Local youth hired and trained for maintenance
  • Healthcare focus: solar vaccine carriers, maternal care kits

The Story

Founded in 1995 by Dr. Harish Hande (IIT, U-Mass) after seeing standalone solar panels in Sri Lanka powering houses for farmers.

SELCO provides solar energy solutions customized for rural India's underserved populations.

Proof Points

2M+
households electrified

With solar since 1995

450K+
systems installed

Paid for by rural poor customers

50%
income increase

Reported by bike garage owner after installation

20%
annual growth

While remaining profitable for 8+ years

Deep Dive

Innovation

SELCO's breakthrough wasn't technology—it was proving the market existed. They conducted deep needs assessments, designing specific solar solutions for each use case and structuring financing to match income patterns.

Circular Model

Customers pay 25% upfront and monthly installments—often less than kerosene spending. SELCO convinced rural banks the poor were creditworthy. 100% repayment rates changed bank attitudes.

Community Impact

Children study at night, improving education. Street vendors extend working hours by 3-4 hours. Healthcare clinics maintain vaccine cold chains. Women's self-help groups operate solar-powered enterprises.

Business Results

SELCO has grown 20% annually while remaining profitable for 8+ consecutive years—disproving the myth that serving the poor requires charity.

Key Takeaway

The poor don't need charity—they need products designed for their lives and financing designed for their cash flows.

Founder Pathway

Capital
Seed Funding

Can start with modest inventory; microfinance partnerships reduce capital needs

Entry Point
New Venture

Best for energy entrepreneurs willing to deeply understand underserved markets

Regulatory
Emerging

Solar regulations vary; microfinance regulations require navigation

Skills Needed
OperationsFinanceCommunity Building

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