Many underprivileged communities of rural India lack access to reliable energy services, forcing the poor to rely on traditional sources for their daily energy needs. Renewable energy (RE) development is hampered by a lack of access to financing and a lack of suitable products that directly help generate income.
In 2006-2007 an earlier REEEP-funded project began to address the issue. SELCO Solar Light Pvt. Ltd. worked in tandem with local financial institutions to understand individual energy needs, and to create products and give loans accordingly.
For example, sewing machines were redesigned to work on solar energy. Financial models were created around entrepreneurs who could rent lights for a pay-for-use basis to users who could not otherwise own a system.