Energy & Lighting Projects

Lighting Solutions for Street Vendors

This project type brings affordable lighting services to poor street vendors/hawkers without access to the grid (or a reliable grid). The concept involves the creation of a locally owned and operated, scalable microenterprise which provides lighting to the hawkers for a small daily fee. The hawkers are typically sellers of fruits, flowers, vegetables, and cooked food. Most hawkers currently use kerosene or LPG lanterns or emergency lights. Kerosene and LPG lanterns are expensive to use given the cost of kerosene and LPG in the grey market. . Additionally, kerosene and LPG lanterns generate unhealthy fumes, as well as considerable heat, which can damage the fruits, flowers and vegetables that the hawkers vend. In comparison to the kerosene and LPG lanterns, the emergency lights -- which are charged from the main electricity supply -- are cheaper, but have a short life of less than a year.

The microenterprise is typically run by a local individual or NGO in the community. S3IDF assists the microenterprise in developing a commercially-viable business model and obtaining financing. The entrepreneur will invest a small proportion of the total capital needed. The remaining financing comes as a loan from a local bank for which S3IDF normally provides a guarantee in the form of a fixed deposit. In cases where a loan from a local bank is not possible, S3IDF can provide a direct loan.

Entrepreneurs utilize efficient lighting systems consisting of compact fluorescent (CFL) bulbs and batteries that can be charged using a Solar Photovoltaic (PV) system, grid power, or a hybrid of both. The batteries are charged during the daytime at a centralized charging station and in the evening, they are delivered to the hawkers for their use. The hawkers need the light points for an average of four hours every evening, after which the used batteries are collected and returned to the charging station. The batteries are supplied to the hawkers on a daily rental payment for use.

The hawkers’ light point projects have significant effects on both the entrepreneur serving the hawkers as well as the customer base. Individual entrepreneurs are able to increase their monthly income and better provide for their families. The hawkers get access to cheaper, safer, and more reliable lighting solutions that allow them to work late into the night and better display their wares (which could in turn lead to increased sales).

Solar Lighting

Light Rentals for Hawkers, Kundapur/Koteshwara, Kundapur Taluk, Udupi District, Karnataka

The first lighting project which S3IDF helped to incubate, the Koteshwara hawkers’ light point business was started by B. Pradeep, a former employee of S3IDF partner organization and solar lighting technology manufacturer Selco. The project used completely photovoltaic (PV) lights. Netravati Grameen Bank provided a Rs. 1,05,000 loan for the initial 30 light points in September 2003. Pradeep began the business in Kundapur, and eventually expanded up the local highway to the town of Koteshwara in 2004. In order to finance the expansion, Pradeep sought a loan for 2,20,000 from Syndicate bank for 40 additional solar lights. Currently, Pradeep only runs the lighting business, using a Maruti van to supply the hawkers on a daily basis. Pradeep started off charging Rs. 10 for each light per night, and now charges Rs. 12.

Light Rentals for Petty Shops/Hawkers, Hassan, Hassan District, Karnataka

Murugesh, a tailor, began the Hassan hawkers’ light point business in January 2005. The project initially cost Rs. 2,70,000 for 50 solar lights, which was covered by a loan from Syndicate Bank, guaranteed by S3IDF. In 2006, Murugesh expanded through a loan from Cauvery Kalpatru Grameen Bank for 75 more lights. Murugesh now uses three small three-wheeled vehicles (called autos), and employs two. He charges Rs. 12 per night per light, up from Rs. 10 when he started the business.

Light Rentals for Hawkers with MASARD, Bangalore, Karnataka

S3IDF has also incubated several hawkers’ light point businesses in the Bangalore area. The first was with the NGO MASARD, which runs an orphanage in the Koramangala area. The project began with 30 photovoltaic lights, and has undergone two expansions since, with the addition of 35 lights and a used three-wheeler vehicle for Rs. 225,000 in December 2004, and the addition of 30 more lights for Rs. 153,000 in August 2005.


Light Rentals for Hawkers in Bommanahalli, Bangalore, Karnataka

Vijaykumar was an auto driver from the Bomanahalli village in Bangalore. After seeing MASARD’s PV light point business in Koramangala, Vijaykumar contacted S3IDF for assistance in setting up his own hawkers’ light point business in his area. Keen on going for a 100% solar charging station, Vijaykumar first approached Selco, which then directed him to S3IDF. S3IDF helped Vijaykumar secure a loan from Canara Bank. With an initial investment of Rs. 183,000, Vijaykumar started with 40 light points. In December 2006, S3IDF invested Rs. 140,000 to assist in Vijaykumar’s expansion, including purchasing a used car and more batteries.

Light Rentals for hawkers in Mysore, Mysore District, Karnataka

Rajendra and Jayaram were partners in a business selling and repairing appliances, such as pressure cookers, door to door. They shared one three-wheeler vehicle to run the business. Together, they wanted to develop a hawkers’ light point business to serve areas of Mysore. By providing a partial loan guarantee, S3IDF helped each entrepreneur secure a separate loan for Rs. 138,000 from the State Bank of Mysore. Beginning in March 2005, the entrepreneurs began operations. They use the same three-wheeler to make light and battery deliveries.

Grid-Charged Lighting

Light rentals for Hawkers in Peenya, Bangalore, Karnataka

Entrepreneur Jayakumar was a rickshaw driver from the industrial northwestern area of Bangalore. A relative of fellow light point entrepreneur Vijaykumar (A69) by marriage, Jayakumar approached S3IDF upon the suggestion of Vijaykumar. S3IDF initially invested Rs. 79,000 in Jayakumar’s business, which started with 40 small grid-charged batteries from a small supplier near Lal Bagh Main Gate in Bangalore. When those batteries broke relatively quickly, S3IDF provided an additional loan for the purchase of 30 more reliable batteries. Jayakumar works exclusively on the lighting business now. He and his wife travel in his auto together to make deliveries to three area markets at 8th Mile Road, Dasarahalli, and Malleshwaram, and have plans to expand to more markets and purchase a larger vehicle in the near future.

Light rentals for Hawkers in Naganathapura, Bangalore, Karnataka

Ramesh, the nephew of Mr. Vijay Kumar, who run’s S3IDF’s Bomanahalli hawkers lighting business, was interested in running a similar business for hawkers in nearby Naganathpura. Ramesh owns an auto, which he already used to supply milk to houses as well as shuttle neighborhood schoolchildren from home to school. From these two services, he earns approximately Rs. 7500 per month. At the encouragement of Vijay Kumar, he also started running a light point business for hawkers on his own, supplying around 30 light points on a daily basis. However, the small batteries he was using were unreliable, which caused him to lose customers. Since he did not have the money to invest in new batteries, he came to S3IDF for financial assistance. He needed around 50 batteries and lights to run his business in Naganathpura, and has potential to expand his business to 75. S3IDF provided a direct loan of Rs. 54,000 Hybrid (Solar/Grid) Lighting

Light rentals for Hawkers in Chitradurga, Chitradurga District, Karnataka

This project started in October 2005. The entrepreneur was Mr. Prakash. Prakash was an agriculturist in Shivganga village, 20 km from Chitradurga town. The project started with 30 lights with an investment of around Rs. 124000. The project was supported by the local regional rural bank, Pragathi Gramin Bank (then Chitradurga Gramin Bank). Prakash, not residing at Chitradurga, found it very difficult to run the project. He tried to employ local people to run the project. However, this did not work satisfactorily. From March 2007, S3IDF took over the project by paying up Prakash’s loan. S3IDF employed Chaitanya, S3IDF’s NGO partner in Nayakanahatti to run the project. Chaitanya appointed Mr. Prakash (no relation to the Prakash who founded the project), a local person to run the project. Mr. Prakash will run the project on a hire purchase basis, such that the ownership of the assets gets transferred to him in two years time starting from Sep 07.

Light rentals for Hawkers in Belgaum, Belgaum District, Karnataka

This project was started in August 2005. Entrepreneur Srinath Aithal, who worked in desktop publishing and screen printing, was given a loan of Rs. 1,50,000 by Karnataka Vikas Grameen Bank (then Malaprabha Grameen Bank) to purchase 40 hybrid grid-solar lights. S3IDF provided a guarantee for the loan.

Aithal expanded his business by another 20 lights (grid power only) in October 2005, with direct financial support from S3IDF. Aithal has completely repaid his loan to S3IDF. He now works full-time in the hawkers’ lighting business, doing all deliveries and pickups by himself.

Light rentals for Hawkers in Sagar, Shimoga District, Karnataka

Entrepreneur Prashant Pai runs an electronics repair shop in Sagar. In March 2005, he started a hawkers’ light point business using a Rs. 1,18,000 loan from Syndicate Bank (guaranteed by S3IDF). Pai started with 30 hybrid light points, and has expanded by another 10 lights since June 2006. Pai still runs his electronics repair shop, and employs someone to conduct light and battery deliveries and pickups on a day-to-day basis.






Light rentals for Hawkers in Tumkur, Tumkur District, Karnataka

Started in January 2005, the Tumkur Hawkers’ light point business was built by Nandish, an environmentalist and social entrepreneur. Nandish is a Fellow of Ashoka, the worldwide organization for the promotion of social entrepreneurship. The business was started with Rs. 1,75,000 and 40 hybrid lights. In September of that year, the project was expanded with the addition of 20 grid-only lights.

Keeping the business robust and profitable hasn’t come without significant challenges for Nandish. In January 2006, a competitor entered the market, offering lower quality lights at a lower price. Additionally, the expansion of the main road in Tumkur drove off many of Nandish’s hawker customers. To make matters worse, a fire destroyed the stalls of five of Nandish’s customers in early 2006. Despite these setbacks, the business is still afloat and profitable. In fact, Nandish even employs a worker to do battery and light deliveries and pickups.


Lighting for Households and Petty Shops

In rural villages throughout India, many households and petty shopkeepers that lack access to a reliable grid-based power supply still rely on kerosene or LPG lanterns to provide lighting during the nighttime hours. Not only do such lanterns provide an inconsistent quality of light, but they are also polluting and relatively expensive due to the need to continually purchase fuel.

In this project model, a local entrepreneur in a village provides households and local shopkeepers with solar-grid hybrid or grid-based lighting systems on a purchase or lease-to-purchase basis. S3IDF connects the entrepreneur – either a local NGO, individual, or self-help group (SHG) – with the appropriate technology supplier and helps the entrepreneur obtain financing, typically by providing a partial loan guarantee payment to the bank.

In some of the implementations that S3IDF has facilitated, the entrepreneur provides solar lanterns powered by photovoltaic (PV) cells as well as some grid-based power. In areas in which residents are not able to pay the additional cost for solar technology, cheaper grid-only lighting can be provided. With grid-only lighting, roadside vendors charge a battery at home, which they then take to their business in the evening.

The customer typically makes a small up-front payment, followed by small daily or weekly installments over the period of four to six months.

Households and local shopkeepers now own a lighting system that is cheaper, less polluting, and offers more consistent light than a kerosene- or LPG-powered lantern.

Hybrid (Solar/Grid) Lighting

Light rentals for Villagers in Tayakanahalli, Bellary District, Karnataka

A member of Priyadarshini, a local women’s SHG, ran a business to rent solar-powered lanterns to local households. The business began in May 2005 with an investment of Rs. 9000, enabled by a loan from Tungabadhra Grameen Bank and a partial loan guarantee provided by S3IDF.

Light rentals for Villagers in Tayakanahalli, Bellary District, Karnataka

Sharanesh, a local partner from the NGO Sri Gurukanaka Vividodesha Vedike, came to S3IDF with a need for 8 grid-only lanterns for villagers in Tayakanahalli to purchase. The customers are mainly people with petty shops who are using gas lanterns at night for their business. S3IDF provided a loan of Rs. 25,000 to Mr. Sharanesh for the sale of lanterns to the customers, which was done on a lease-to-purchase basis. The project started in October 2006.

Light leasing for Villagers in Huillikere, Bellary District, Karnataka

This project provided poor villagers in Hullikere village with 7W solar lanterns and 10 W panel. The project emerged as part of UNOPS survey work where Sharanesh, a local partner from the NGO Sri Gurukanaka Vividodesha Vedike, conducted surveys and later demonstrated solar lanterns to the households. Twenty households were interested in the lanterns. However, they were not in a position to pay the entire amount in one go. The local bank was not able to give loans to each household as the loan size was very small for the bank. This problem was solved by a local men’s SHG group coming forward to take the entire loan amount for the 20 lanterns. One member of the SHG group collects monthly loan repayments from the households with a small collection fee and pays the bank. The SHG member has also been trained to attend to any minor repairs. The loan was made possible through S3IDF’s partial risk guarantee to Pragathi Grameen Bank. The project started in October 2006.

Light leasing for Petty Shops and Households in and around Tadas, Haveri District, Karnataka

Implemented in January 2007, this project provided petty shops and households in Haveri district with LED lanterns and 7W solar lanterns on a lease-to-purchase basis. The project emerged as part of UNOPS survey work where local NGO partner Chinyard identified over 20 customers in Tadas village and surrounding villages who were interested in purchasing the lanterns on a lease-to-purchase basis over a six-month period. The cost of the investment was around Rs. 43,000, and S3IDF provided Chinyard with a direct loan.

Grid-Charged Lighting

Lighting services for petty shops in Nayakanahatti village, Chitradurga District, Karnataka

This project supplied grid charging systems (around 25) and five solar lanterns to the hawkers in Nayakanahatti on a lease-to-purchase scheme. The grid charging systems cost Rs. 1300 per piece and the solar lanterns cost Rs. 3600 per piece. Payments were collected from the hawkers on a daily basis. The grid charging system was paid for over a four-month period, and the solar lanterns are paid for over a six-month period time. The total investment was Rs. 48,000, with S3IDF providing a direct loan to NGO partner Chaitanya for the provision of the equipment. In February 2006, the S3IDF provided additional support for an expansion of lighting sales. The expansion investment was Rs. 14,000. At the same time as this expansion occurred, UNOPS survey data collected by Chaitanya indicated that there was a market for grid-charged lights, pressure cookers, and LED lanterns in and around the village. The project then expanded to provide enterprise support to Chaitanya to engage in selling these items. Chaitanya provides these items on both a purchase and lease-to-purchase basis. For direct purchases, S3IDF provides one month working capital support, and for lease purchases, S3IDF provides a term loan of six months. This investment is approximately Rs. 28,000.