I have the project going in Karnataka and parts of Gujarat. It will take sometime to drive it since more than technology, it is human resource driven. It took us five to six years to penetrate 500 houses. Convincing FIIs that solar makes sense, will take time. For example, when you sell a TV, you do not sell it telling what its technology is or what its capacitor is. You buy it because it is a Sony or Panasonic. But when you go to villages, you have to first tell them what solar is and what Selco is all about. Solar energy is not a good in itself, it is a need for lighting.
Initially, it was a four-light system but it is actually not that way. People need light for different purposes – children’s study, kitchen, bathroom, corridor etc. Once it is customized, it becomes a need. When the electricity board gives you power, it just gives you two points outside your house, the inside design is done by you. However, in terms of solar power, and especially in rural areas, you need to go inside. When you ask an architect whether he can do 150 houses in the next one year, he might answer in the negative because his ability to do so will depend on what each of those 150 householders want.
How do you deal with issues of scalability?
Scalability is a difficult question to answer. Once a farmer told me, he needs a three-light system. When we made it, he actually bolted, finding it very expensive. One of our technicians visited his place and broke a part of his house (and fixed a light). He needed light in three rooms. He did not need three lights. That reduced the cost by one-third. Had it been a typical company, it would not have sought him out to understand if there was any other option that could be looked at. Now 10 other BPL (Below Poverty Line) houses observed this for six months and finally bought a system. That makes the difference. It is not exactly going across India but making sure the right people get it in the right quantity and at the right price. We need a supply change that will work.
What is the USP of Selco?
It lies in the fact that solar-home-systems (SHS) are low-cost, customized and installed by Selco technicians to meet individual needs/ budgets. Solar energy is environment friendly and saves fast eroding forest cover, shrinking everyday as firewood for the poor. Hande. For a standard four light SHS, a customer pays Rs18,000/, a whopping amount for the financially weak but we now provide cheaper options.
We have forged partnerships with nine regional rural banks, commercial banks, NGOs and rural farmer cooperatives to develop financial solutions. With a force of 78 deeply committed technicians our management holds its fort, even against the cruelest odds. Employee commitment has been the single most reason why we are still around.
If we put solar energy against hydroelectric, thermal or even nuclear energy, where does it stand and how does India fare?
In India, we are definitely not on a level-playing field. When you get thermal energy you are not paying for the power plant that was built, nor are you paying for the pollution it causes. Moreover, we talk about T&D losses, remoteness of many families and plant load factor about supplying electricity to end-user. You take 10 end-users at the village level, where all need different quantity of lights. Without understanding for what and how much power they need we end up giving them surplus, as a result much of it gets lost in transmission.
How do the economics work out?