1) What is microfinance?

Small financing or microfinance policy is generally followed by Govt. Banks under certain govt.
policy for promotion of scheme in national interest & to support poor or small income people.
2) How it can be useful in promotion of Renewable Energy usage?
As we have seen farmers buying fertilizers, pumps for increase in crop production supported by
Govt. Bank financing at lower interest rate. The scheme has benefited many farmers throughout
India. Yield from the field has gone up. Farmers financial strength has also improved,
contributing increase in GDP of our country.
We know need of energy is 4 th most important need after food, cloth & house today. Poor
People in rural area has no power & use kerosene for lighting lantern, many times the stay in
dark. Small venders, fruit or vegetable venders use lantern to sell & earn their livelihoods. Many
places in India are such where even in next 10years it would be very difficult to provide
electricity. People of those places finish their work by evening & their days start only after
sunshine. Their children do not know, what is the importance of education? They only
understand, how to earn their livelihood. Unless we make them educated, we can’t explain
them the importance of education & their contribution towards development of our country.
Rural Farmers financed for buying pumps through micro-financing can not run pumps unless
they have energy available to run the pumps. We need to provide them power/electricity to run
pumps & irrigate their farms for increase of crop production.

Providing renewable energy to rural area can help people to educate their children, increase
farm productions, make them financially stable.
3) How & where to implement Micro-financing to promote Renewable energy?
To promote renewable energy through micro-financing, we need to understand the products of
renewable energy which will be useful for the rural people.
a) Solar Lantern: This product is most economical & useful for people of rural area in various
ways. It requires only sun- energy, available free for almost 9-10months in a year. It can be
used to lighten the place. Very useful to hole communities in various ways (can be micro-
financed at lower interest rate).
b) Solar Pumps.: Now a days, solar Pumps are available, though it is costly (can be micro-
financed by banks at low interest rate.), can be very useful for farmers in rural area for field
irrigation.
c) Solar Water Heater: We can use sun heat (free heat) to heat-up water for bathing
application. We can save lot of conventional energy using solar water heater & make rural
people clean & healthy.
d) Solar Street lights: We can use Solar street lights to light-up common place in the village,
village market, hospital etc.
e) Wind Mill: We can also use windmill to generate power to run lights, run pumps. This can
be also promoted at large scale if finance is provided to Gram-Panchayat or any community
formed in village for their development.
 f) Bio-gas: This can provide renewable fuel to the rural area for cooking, can lighten the place
& can generate free fertilizers for farmers. This can be again provided to gram-panchyat or a
community for common usage.
4) Benefits of the scheme:
In rural area, people generally are low in earning & save very little for any investment. They can
invest the same in above said needy products if finance is provided in installments at low
interest rate. Thus micro-finance will help us in promoting use of renewable energy product in
rural area.
a) If use of renewable energy is promoted, education level in rural area can be increased,
which will contribute in development of the community & in turn in contribute in
development of the nation.
b) Agri-Production can be increased, which will increase the living standard of farmers in rural.
c) Making rural area energy sufficient & will make them less dependent on supply of
conventional energy, which will contribute in development of the nation.
d) Use of renewable energy will make their/our environment green, clean & healthy.
e) Will save conventional energy for the use in industrial production & contribute in our nation
growth.
f) Will save in preserving fissile fuel to make us energy sufficient for longer period of time.
5) Conclusion:
We must promote use of renewable energy in rural area & for the speedy growth, micro-
financing is one of the most important tool. This micro-financing can be through govt. bank,
cooperative bank or for the renewable energy company itself to promote their products &
increase their sale.
Thanks & regards.