WOMEN ENTREPRENEURS LIGHT THE WAY FOR SOLAR PRODUCTS IN INDIA CASE STUDY: WOMEN ENTREPRENEURS LIGHT THE WAY FOR SOLAR PRODUCTS IN INDIA Photos: Meghmani FineChem Limited Project Overview Challenges their participation in energy markets. In India, the early entry of low-quality solar lighting also meant that poten- E In India, 400 million people do not use grid electricity tial customers were wary of spending money on likely very year worldwide, poor households spend $37 billion on as their main source of lighting,2 a gap that dispropor- faulty products. Lighting Asia/India knew that persuading kerosene for lighting, biomass for cooking, and other unsustain- tionately affects women. The lack of efficient energy customers to adopt solar lighting would require creative able and unhealthy fuels.1 This fuel use represents a substantial connections places increased burdens on women’s time approaches. opportunity for private sector advances—chief among these, the development of solar lighting systems. by adding to their household responsibilities, which in turn reduces their opportunities to earn income. Women Building markets for solar lighting, particularly among a widely distribut- are also more exposed to health risks from kerosene oil Gender-Smart Solutions ed, low-income customer base, requires technical and business-model and other fuel-based lighting sources.3 innovation. IFC’s Lighting Asia/India accomplished both by partnering Lighting Asia/India overcame the challenges associat- with solar distributors in India, such as Frontier Markets, to develop a Despite its vast potential, the market for modern off-grid ed with last-mile sales and built the market for off-grid network of women entrepreneurs known as Solar Sahelis. This network solar products in India is severely underdeveloped, with solar lighting by focusing on women as distributors and helped to overcome the cost and awareness challenges of selling in IFC assessments estimating a 5 percent to 7 percent customers. For distribution, Lighting Asia/India partnered last-mile (i.e., remote) markets. As a result, the partnership was able to penetration rate. Two key barriers to market develop- with Frontier Markets, a clean-energy-products increase sales by 30 percent, opening up the market for solar lighting ment are building demand among last-mile customers company, to develop a network of Solar Sahelis. The products. and ensuring delivery to them. network is made up of a group of self-employed women recruited from self-help groups. These women-run The population in rural areas is least likely to have alliances provide access to funds and technical assis- Project Objectives access to safe forms of lighting, yet it also presents sales tance to help women in local villages improve their lives challenges for two reasons: First, last-mile customers and start their own businesses.4 Based on initial results, Lighting Asia/India, part of IFC’s Lighting Global program, accelerates typically have low incomes, and because of their remote Frontier Markets plans to expand the Solar Sahelis access to clean and affordable energy in rural India by promoting locations, it costs more for the private sector to serve network from 250 women to 20,000 between 2016 and modern off-grid lighting products, home systems, and mini-grid them reliably. Second, these customers tend to have 2020. connections. The program works with the private sector to address limited access to information and networks, decreasing barriers to growth by providing market intelligence, fostering business- Solar Sahelis promoted awareness of the benefits to-business connections, strengthening last-mile access, and raising of high-quality solar lights through the Suryoday, or 2 World Bank Group (2015). “Kerosene for Home Lighting: A Key consumer awareness of quality-assured lighting products in the states “Sunrise,” campaign. The campaign highlighted the Indicator to Prioritize Districts for Clean Energy Initiatives in India.” of Uttar Pradesh, Bihar, and Rajasthan. Available at: http://lightingasia.org/india/what_new/kerosene-for-home- lighting-a-key-indicator-to-prioritize-districts-for-clean-energy-initiatives-in- 1 International Finance Corporation (2012). From Gap to Opportunity: Business india/ 4 World Bank Group, “In Rural India, It Takes a Village—and Women’s Models for Scaling Up Energy Access. Available at: http://www.ifc.org/wps/wcm/connect/ 3 Deloitte (2015). “Women, Energy and Economic Empowerment.” Self-help Groups — to Improve Livelihoods.” Available at: http://www. topics_ext_content/ifc_external_corporate_site/ifc+sustainability/learning+and+adapting/ Available at: http://www.theatlantic.com/sponsored/deloitte-shifts/women- worldbank.org/en/news/video/2015/09/04/in-rural-india-it-takes-a-village- knowledge+products/publications/publications_report_gap-opportunity energy-and-economic-empowerment/261/ and-womens-self-help-groups-to-improve-livelihoods economic savings and health benefits of solar lighting. It per month for part-time work, a substantial addition also improved customers’ ability to identify high-quality to what was typically a low or nonexistent income. solar products, ensuring that substandard goods did ■■ Customer trust: While high-quality solar lighting deliv- not discourage the adoption of more reliable products. ers cost savings in comparison to fuel-based lighting The awareness campaign particularly targeted women, over time, in the short term, it can be a substantial reaching 56,000 of them across three states through investment for rural customers. Having a network of self-help group meetings. Solar Sahelis embedded in local communities and available to answer post-sales inquiries built the trust needed to purchase off-grid solar lighting. The Business Case ■■ Market access: Studies across markets show that women are key decision makers in energy purchases, At the end of the 18 months’ partnership between IFC influencing what type of lighting products to buy and and Frontier Markets, the Solar Sahelis network account- how much is spent on them.5 Working with a network ed for 30 percent of all sales. To date, Frontier Markets of female entrepreneurs facilitated sales in a market has sold 115,000 solar lamps and torches and 12,000 segment that male agents might not have been able solar home-lighting systems—bringing the benefits of to access. clean, safe, and affordable light to the homes of approx- imately 630,000 people. This was possible because ■■ Public awareness: Coordinated campaigns and an the network helped overcome the cost and aware- active network of entrepreneurs produced results: ness challenges associated with last-mile distribution. Consumer knowledge of the availability and benefits Specifically, gender-smart solutions helped to build distri- of high-quality solar lighting jumped from 25 percent PUTTING THE BUSINESS CASE INTO ACTION WITH IFC bution networks, increase customer trust and market to 60 percent among consumers in the target area. Recognizing that equality of economic opportunity between women access, and enhance public awareness and recognition. ■■ Public recognition: Frontier Markets recently won and men drives productivity, profitability, and performance, IFC helps ■■ Last-mile distribution: Buying solar products is a the 2016 Ashden Award for Clean Energy for Women clients realize gender-smart solutions to their business challenges. longer-term, one-off financial investment, making it and Girls. We work with clients to better manage talent in their workforce and impractical to maintain a full-time, dedicated sales supply chains and to design products that tap the earning potential staff in remote communities. By working through of the women’s market. Our motivating force is the knowledge that independently employed women, Lighting Asia/India when companies and people—no matter their gender—can reach 5 International Finance Corporation (2011). “Expanding Women’s Role and Frontier Markets gained a flexible network that their full potential, families, communities, and economies can in Africa’s Modern Off-Grid Lighting Market.” Available at: http://www. was also deeply tied to local communities. At the esmap.org/sites/esmap.org/files/gender_lighting_highres_LOW%20RES. achieve sustainable growth and prosperity. same time, Solar Sahelis earned an average of $35 pdf What IFC partners say What entrepreneurs say What IFC says Women are not an impact story, women are actually I really liked the solar products from when I first saw them. Women are not only important consumers and entrepreneurs, smart business. Being a Saheli gives me the chance to earn more money. I am they are also key catalysts of the modern off-grid lighting Ajaita Shah trying to study, so I can buy books and anything the household revolution. CEO, Frontier Markets needs. Anjali Garg Saroj Jat Program Manager, IFC Solar Saheli, Rajasthan Contact Information IFC 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA +1 (202) 458-2262 Bmurti@IFC.org www.IFC.org/gender @WBG_Gender 10953