PRESENTED

BY -
ROLL NO’s-

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23039 Empowering Communities Through Sustainable Lighting: A
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Case Study of SELCO
 WHAT IS SELCO…. Founded in 1995 by Dr. H. Harish Hande

1 4
SELCO India is a Bangalore-based
social enterprise that makes solar
lighting technology accessible to
the economically impoverished
people in India
Mission is based on the idea that the
economic conditions of the
impoverished can be improved
substantially if they are made
productive.

an average rural upfront investment in

income of less than 2 5 solar lighting, ranging
US$50 per month from US$200 to US$500

SELCO has sold solar lighting to

more than 100,000 rural homes and
Employing about 170 people, institutions in the Indian state of
from 25 service centres.
3 6 Karnataka
Selco aims to bust three myths
 SELCO - FORMATION
1993 1995 & 1996 2003
• Harish visits • Trained local
Dominion Republic • Loan from IFC
technicians & created
and Srilanka (International Finance
a pool of skilled
• Meets the founder of Corporation) provides
individuals
SELF(Solar Electric additional resources.
• Loan from USAID
Light Fund)

1994
• He founded SELCO
in India
• Challenge: Myth
1999-2002
about solar lights
lasting only 3-4 • Equity investments
months from various sources
STP Analysis
 Cost Breakdown of a Four Light System
INR US$

Photovoltaic module 8,000 160

Battery 4,500 90
4 Lights @ 800 3,200 64
Installation & Wiring 1,300 26
Total 17,000 340

The sale price of the above system will be ~ INR 20,000 (US$400).

SELCO charges INR 250 as annual maintenance contract for a four-light system, which entitles the customer to two
maintenance services and one emergency service on call
“One of the best financial lessons that I learnt was from a street vendor who told me that she can afford to pay
INR 10 (US 20 cents) a day but would find it difficult to pay INR 300 (US$6) every month!
This was when I realized that to sell solar lights, the poor needs to be provided with doorstep
financing that ensured that payback patterns were synchronized with their income patterns.”
- By Harish Hande
 SELCO’s Profit & Loss Account (all figures in INR Million)
FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09
Revenue 130 66 63 78 120
Material Cost # 86 43 42 53 77
SG&A 8 4 4 5 8
General Admin 32 29 36 28 32
Costs
Financing costs 2 3 4 2 0.5
Profit / Loss 3.15 -12.3 -23.13 -8.39 1.36

# includes Market Awareness creation programs, Demos, Interest Subsidy costs,

Sales Commission etc.
 Benefits & Impact
•Strong partnerships with socially-aligned
investors
•Viable business model serving the
SELCO underprivileged
•Award recognition & secured funding for
expansion
• Lower energy costs than kerosene&
Improved health from reduced smoke
inhalation
Customer • Income for vendors & flower pickers.
Increased income from fuel-efficient
smokeless stoves

•Empowered 110,000+ homes & institutions with solar

lighting
Impact •Improved lives, education & women's livelihoods.
Created rural jobs & reduced reliance on polluting fuel
 CONCLUSION -

o SELCO demonstrates a commercially viable social

enterprise model delivering significant social and
environmental impact.
o It empowers communities with clean energy,
improved livelihoods, and financial inclusion while
promoting sustainable development.
o Challenges include scalability and navigating policy
landscapes.
o Overall, SELCO serves as a paradigm for integrating
business and social responsibility for positive
change
THANK YOU

Sacrifice, We
Sustain !!