By Janine Holloway, CELT Virtual Intern
With 300 sunny days a year, India offers a perfect market for solar energy. However, that market has been relatively untapped until recently, when a range of off-grid and microgrid solar technologies started reaching both urban and rural areas.
Approximately 700 million people in India (a little more than half of the population) have either unreliable connections to the national electricity grid or no connection at all. As a result, many (approximately 90 million households) rely on kerosene lamps or household stoves for their daily lighting and cooking needs. Kerosene is a highly polluting fuel that, according to UNEP, can burn up to 80 liters of fuel in a single wick and emit more than 250 kilograms of carbon dioxide per year. The Worldwatch Institute reports that the use of kerosene and other fossil fuels for indoor lighting is responsible for 64% of deaths and 81% of lifelong disabilities from indoor pollution for children under the age of five. Unfortunately, kerosene continues to be commonly used in India because it is the only widely accessible and affordable energy option for many.
Given the range and remote geographic location of most rural villages and the lack of reliable infrastructure in cities, trying to connect every area in India to the national grid is both expensive and unrealistic in the near term. Fortunately, through a range of initiatives, solar energy technology has started to become a more realistic option for many Indians, not only in urban areas but also in rural villages.
One effective off-grid solar alternative is offered by Simpa Networks, a company based in Bangalore. Simpa Networks recognized that rural incomes are irregular and therefore people are unwilling to commit to a routine payment plan that could result in future debt. Under Simpa’s approach, a customer can buy an individual metered solar panel for a household for a small initial cost and then pay a small fee, ranging from 50 to 500 rupees, to recharge the system when the energy meter runs out. Since the system is shut off until the next recharge fee is paid, no debt is incurred. Additionally, as Simpa Networks says “the real proposition is that as the user recharges the system, he or she is slowly paying to own the system. Once enough recharges have been made (across a period of approximately 3-5 years), the system unlocks and produces solar power for free.” So this system not only provides immediate access to solar power, it also enables customers to gain energy independence at a rate they can afford.
A customer recharging the Simpa Networks solar energy system for his residence. Source: http://simpanetworks.com/our-solution/
A different approach that provides solar energy through microgrid technology is being used by Mera Gao Power, a firm in Uttar Pradesh, India’s most populous state. The microgrid system places solar panels on a roof, with electricity wires “running to a few dozen nearby homes, allowing each seven hours of light a day plus a phone charger.” The inclusion of a phone charger is important because while the majority of Indians own a cell phone, they often lack access to electricity to charge it. A cell phone is particularly valuable in that it can provide access to resources and economic ladders otherwise unreachable, but this is only possible if the phone is recharged routinely. As of January 2013, Mera Gao Power had set up microgrids in 155 villages, providing light and electricity for 3,600 households.
Multiple other companies, NGO’s, and firms are pursuing similar approaches to expand solar energy in India. SunEdison, a leading solar energy company, has provided electricity for 400 residents who pay only $1-$1.50 per month by installing a 14 KW solar powered microgrid. This also creates local jobs. Omnigrid Micropower Company (OMC) has been able to power phone towers and sell electricity to around 3,000 households and businesses by building 10 solar plants. Additionally, OMC plans on building 4,000 more solar plants, mostly in Uttar Pradesh, which upon completion will light millions of households.
The environmental benefits of solar energy in India are significant. Thousands of tons of carbon dioxide from the burning of kerosene and diesel fuel will no longer be generated. Daily life has improved for the recipients of solar power as well. One of the solar plants built by OMC allowed a local businessman in Atrauli village, Pradeep Singh, to open a college for 550 students. Other projects have raised income levels for individual entrepreneurs, as stores have been able to stay open later, bakers can work into the evening, and tailors and craftsmen have the light needed to work at night.
So, not only is the potential market in India for solar technology enormous, the potential for resulting improvement in health, education, and economy for individuals is equally profound.