Tuesday, March 11, 2014: With the not-so-efficient power supply in rural areas, solar home lighting systems have proven to be a successful alternative. The Ministry of New and Renewable Energy (MNRE) has made it possible for the solar energy to reach the rural areas by providing subsidies and easy loans via National Bank for Agriculture and Rural Development (NABARD). According to Loop Solar, independent solar initiatives can add nearly 3,000 MW of solar in solar home lighting systems.
Loop Solar is an entrepreneurial venture based in the National Capital Region (NCR) of India. The company via a fresh market approach found that if the market is allowed to grow outside of all government subsidies, it can add nearly 3,000 MW of solar, to small solar home lighting systems and lanterns, in the next five years. It identified key issues in the market and further worked out ways to address them, which are product quality, simplicity of use, financing, customisation of products, last mile reach of distribution and after-sales service.
It is to be noted that the solar costs have fallen by 54 per cent in the past three years, but the cost and technology options for rural solar market in India are bound in the government stipulated specifications and service models.
According to PV magazine report, Loop Solar acknowledged that the challenge-at-hand is to address all these issues within a single business model. Current distribution models of institutional (profit or non-profit) partnerships, company owned branches, micro-franchising and traditional distribution share many shortcomings.
The new model suggested by the company, ‘Open Loop Network’, is an product design that is likely to cater to quality, simplicity and ease of customisation. While, traditional distribution channels will provide the competition, volumes and outreach. The aim is to build a ‘pan-India entrepreneurial’ rural solar specific assembly, distribution, installation and service network. Loop Solar plans to begin its sales operations in June 2014, and has already received a considerable interest.
