State of the Decentralized Renewable Energy Sector in India - Insights from CLEAN
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State of the
Decentralized Renewable
Energy Sector in India -
Insights from CLEAN
1
© CLEAN, 2021
All rights reserved. For private circulation only.
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Disclaimer
The views/analysis expressed in this report/
document do notnecessarily reflect the views of
CLEAN and also does not guarantee the accuracy of
any data included in this publication nor does it accept
any responsibility for the consequences of its use.
ACKNOWLEDGEMENTS
Our stakeholders define the quality of our report. CLEAN is deeply
grateful to all its stakeholders, especially its member enterprises, who
have contributed immensely with their insights on markets, business,
finance, technology, skills and other relevant aspects. The report
wouldn’t have been possible without their valuable inputs.
We express our gratitude to the Advisory Committee members:
Santosh Singh (Intellecap), Abhishek Jain (CEEW), Pamli Deka (PFAN),
Anand Prabu Pathanjali (Power for All), Yeswanth Duraiswamy (GIZ),
and Sreejith Narayanan (Villgro) for their timely guidance and inputs.
We are also thankful to Rekha Krishnan, Anuj Hemant Xess, and
Adwait Joshi for rendering their support towards the report preparation. State of the
Authors: Decentralized Renewable
Energy Sector in India -
Ananya Saini, Amittosh Kumar Pandey, Rajni Jain, Gopala Krishnan
Sankara Subramanian, Kritika Kumar, and Chhavi Arora
Research Direction:
Hari Natarajan Insights from CLEAN
Research Support:
Juhi Anand, Deepa Sharma, and Richa Singh
Editorial Support:
David Durani
Designer:
Ranjana DG Chandra | www.padmasiddhi.com
2
A big thank you to all our contributing We are deeply grateful to CLEAN members who Iora Ecological Solutions Pvt. Ltd.
member enterprises and other stakeholders participated in this year’s data collection exercise JJ PV Solar
who took out time to provide the team with and helping us in preparing the “State of the Katidhan
qualitative inputs: Decentralized Renewable Energy Sector in India Lits N Lights
– Insights from CLEAN 2020-21” report. Mesha Energy Solutions Pvt Ltd
• Barefoot college international Micro Energy Credits
• Bihar-SRLM Aaranyak Mlinda Sustainable Environment Pvt Ltd
• Clean Energy Technology Apeiro Energy Pvt. Ltd. Navitas Green Solutions Pvt Ltd
• Coolcrop Auroville Consulting - Auroville Foundation Non-Conventional Energy and Rural Development Society
• E-hands Basil Energetics Private Limited Oorja Development Solutions
• Gram Oorja Chirasthaee Urja Samadhan (CUS) Oorja On Move Infra Pvt Ltd
• Greenwear Council On Energy, Environment and Water pManifold
• Husk Power Systems D.Light Energy Private Limited Pollinate Energy India Pvt Ltd
• Hydrogreens Dhosa Chandaneswar Bratyajana Samity (DCBS) Power For All
• Inficold Decentralised Energy Systems India Pvt Ltd Practical Action Foundation
• Katidhan Deffrail Systems Pushan Renewable Energy Pvt. Ltd.
• Khethworks Deyhaat Connect LLP Raheja Solar Food Processing Pvt Ltd
• Lits N Llights Dharma Life Ral Consumer Products Pvt Ltd
• Navitas Solar Doorastha Analytics Pvt Ltd Resham Sutra Pvt Ltd
• NBIRT Earthday.org Samuchit Enviro Tech
• Onergy Ecoforge Advisors Pvt Ltd Sarthi Marketing
• Oorja Development Solutions Ecoideaz Ventures Score Livelihood Foundation
• Pollinate Energy Ecosense Appliances Pvt Ltd SCS Innovation Opc Pvt.Ltd
• Resham Sutra E-Hands Energy (India) Pvt Ltd Selco Solar Light Private Limited
• Revy Ekak Innovations Shanti Maitree
• Simi Stove Emsys Electronics Pvt Ltd Shramik Bharti
• Techno Village Enphase Sileaf Technologies Pvt Ltd
Free Spirits Green Labs Pvt Ltd Simi Stove Private Limited
Gloworld Energy Smokeless Cookstove Foundation
Gram Oorja Solutions Pvt Limited SNL Energy Solutions Pvt Ltd
Gram Swaraj Society to Create Awareness Towards Life and Environment (SCALE)
Grameen India Solar Hitech Solutions Pvt Ltd
Greenland Solutions St. Thomas Charitable and Educational Trust
Greenway Grameen Infra Pvt Ltd Sustain Plus Energy Foundation
Hamara Grid Private Limited SwitchOn Foundation
Himalayan Rocket Stove Techno Village Energy Pvt. Ltd.
HOPE Foundation Technology Informatics Design Endeavour (TIDE)
Husk Power Systems Udyama
Hydrogreens Agri Solutions Connected Energy Technologies
India Foundation for Humanistic Development VHN Solar Energy Pvt Ltd
(IFHD) Vineeti Technologies
Integrated Research and Action for Development WEFT Research
(IRADe)
Invenco
2 3
C O N T E N T S
Foreword 6 1.7 Market research in the DRE 3. Technology and 4. Policy Landscape of
Preface 7 sector 32 Innovation 74 the DRE Sector 108
List of Abbreviations 8 1.8 Quality and project management 3.1 Innovations in the DRE sector 75 4.1. Updates on Government
List of Images 8 practices in the DRE sector 34 3.1.1 Power Trailer system in rural Programs and Schemes 108
List of Case Studies 9 1.8.1 Challenges 35 areas by h2e Power 76 4.1.1. PM KUSUM 108
List of Tables 9 3.1.2. Combined stack cookstove by 4.1.2. Draft Policy Framework for
List of Figures 10 Ecosense Appliances 77 Developing and Promoting
Executive Summary 12 2. Financing Landscape 3.1.3. Bioethanol gel based cookstove 77 DRE Livelihood Applications 110
Overview of Respondents 17 of the DRE Sector 36 3.1.4. End to end energy monitoring 4.1.3. Atmanirbhar Bharat Rozgar
2.1 Introduction 36 mechanism for DRE mini/micro Yojana 110
2.2 How the DRE Sector is Raising grids- Doorastha Analytics 78 4.2. Benchmark Cost 110
1. Overview of the DRE Funds : Map of Ongoing Loans 38 3.1.5. Solar loom bobbin drives - 4.2.1. Solar study lamps 111
Market in 2020-21 18 2.3 State of Fresh Fundraising 39 SCS innovations 78 4.2.3 Standalone Solar Power
1.1 Sales revenue 19 2.3.1 Deal Flow 46 3.2 DRE Technology and Sub-Sector Plants / Packs 112
1.2 Deployment of DRE Sector Outlook 51 Briefs 79 4.2.4 Solar Water Pumps 114
technologies 19 2.4 Sales and Profitability Trends 56 3.2.1 BIS standards 79 4.3. CLEAN Members Participation
1.2.1 Sales details for FY 20-21 19 2.5 Mapping the Challenges Faced 3.2.2 BIS Consultation on Low in Government Programs 114
1.2.2 Highlight of DRE deployments by DRE Enterprises 60 Voltage DC (LVDC) 80 4.3.1. CLEAN Member Perception
done by CLEAN members in 2.6 MSME & Start Up Registrations 3.2.3 Clean cooking 80 of DRE Policies and Programs 115
FY 20-21 20 Amongst DRE Enterprises 61 3.2.4 Productive end use 80 4.4. Certification of DRE Products
1.3 Popular DRE Enabled Livelihood 2.7 RBI’s Resolution Frameworks for 3.2.5 Small wind 81 and Applications 117
Products 22 Covid-19 Relief 64 3.2.6 Pico hydro 83
1.4 Market Channels and 2.8 CSR in DRE 65 3.3 Remote monitoring systems 90
Promotional Techniques 23 2.9 Mapping End User Financing 3.3.1 Benefits of implementing 5. Skills and Employment 121
1.4.3 Partnerships 27 Requirements in DRE 70 remote monitoring systems 90 5.1 Employment in DRE sector 122
1.4.4 Promotional tools used by 2.9.1 Risky Perception of End User 3.3.2 Challenges faced while 5.2 Training and skill development 123
DRE Organizations 27 Finance for DRE 70 implementing remote 5.2.1 Impact of COVID on skills and
1.5 Challenges faced by DRE 2.9.2 Mapping End User Financing monitoring systems 90 training related activities 123
organizations 30 Requirements amongst DRE 3.4 Local Manufacturing of DRE 5.2.2 Number of participants trained
1.5.1 Coping mechanisms adopted Enterprises 70 Components 100 in the last year 123
by DRE organizations 31 2.10 Summary of Conclusions and 3.4.1 Issues Related to Procuring 5.3 Skill gap assessment 123
1.6 Opportunities and barriers Way Ahead 72 Locally Manufactured
for DRE 31 2.11 References 73 Components 100
1.6.1 Opportunities 32 Way Forward 132
1.6.2. Barriers 32
Annexure 134
4 5
FOREWORD PREFACE
Resilience has been the way in2021. in focus the impact Covid-19 had on end user 2021 has been a year of hope, management, and ensure better lives. This
Personally, and professionally, it’s financing as well as the challenges faced by understanding, perseverance year, deployment of DRE livelihoods appliances
been a year filled with challenges. the sector in establishing linkages where the and grit. The world grappled has increased, which reiterates that the focus
With millions of lives lost and businesses beneficiaries have not been introduced to with multiple challenges, however, it was and need is shifting to energizing productive
suffering heavily, the Covid-19 virus variants formal lending mechanisms. The report also encouraging to see an increased usage of use applications.
have only increased the misery of people and analyses the problems linked with consistent DRE progressing across various applications.
uncertainty of the situation. Yet, we witnessed decline in benchmark costs for off-grid and I congratulate the CLEAN team for bringing
the unflinching human attitude to survive. decentralised solar PV systems. DRE technologies have always played a out the enterprise level insights from the
This grit also resonated in the way the DRE pivotal role in achieving universal energy Decentralized Renewable Energy Sector to
sector went about its business. Despite the The report this year too iterates that DRE access by providing 24x7 reliable and quality the fore. The report serves as an important
roadblocks, there have been examples of businesses are driven by passionate and power supply. DRE, I believe, is now well instrument in terms of understanding the
new innovations and increased sales. These committed people who are trying to fulfil the positioned to integrate into the mainstream sector and crafting next steps.
dimensions, which are reflected in this year’s energy requirements of the most under-served energy mix and help in contributing to
State of the DRE Sector in India Report are populations, with profits as a secondary though achieve India’s ambitious renewable energy DINESH JAGDALE
positive indicators of recovery. necessary consideration. We believe that the commitments. Ministry of New and Renewable Joint Secretary,
fifth edition of the State of DRE Sector in India Energy (MNRE) is working on a framework Ministry of New and Renewable Energy
Some of the Government measures were Report will provide stakeholders with a three- for Developing and Promoting Decentralized
helpful in strengthening the confidence of sixty-degree view of the role of the sector in Renewable Energy (DRE) Livelihood
DRE players. The announcement of PLI catalysing development, enhancing lives and Applications.
schemes for solar panels and battery enabling opportunities through DRE.
manufacturing was much appreciated within MNRE recognizes the potential of all forms of
the sector. CLEAN member enterprises SVATI BHOGLE renewable energy and hence has established
strongly believe that once the DRE for Chairperson various programmes for promotion. Bio-
livelihoods policy comes into action, it would CLEAN energy has always been one of the important
be instrumental in scaling up the sector, sources of energy for a large number of
creating a robust rural economy and Indian households and bringing Bio-energy
helping realise the various goals set by the in the mainstream category signals growing
Government of India. As India strives hard to importance of the resource. DRE technologies
bring back normalcy with a stable economy, have great potential in generating employment
DRE solutions are emerging as necessary and in the country, as compared to other forms
appropriate to meet the end user needs. The of energy - a facet that becomes particularly
case studies presented in this year’s report crucial in the current economic scenario.
showcase the diversified solutions, emerging
innovations and scale of impact when I am pleased to share the fifth edition of the
opportunities are met with awareness “State of the Decentralized Renewable Energy
generation, market access and finance. Sector in India - Insights from CLEAN” report,
which presents an overview of the sector.
The report findings in the report suggest technology deployments made, highlights
that post covid, in-person trainings, came the impact created by DRE initiatives and
to a complete halt. These were previously captures innovations that have leapfrogged
imperative for technical training programmes, development. All this in the backdrop of
for formation of new workforce. The upside COVID-19 is commendable.
though is that it opened doors to online
trainings, which has certainly extended the DRE sector has significant potential to enhance
reach of these trainings. The report also brings livelihoods, improve income, facilitate waste
6 7
LIST OF LIST OF LIST OF TABLES
ABBREVIATIONS CASE STUDIES AND BOXES
2G Second-generation cellular network kg Kilogram CS 1 Bihar Srlm - Solar Shops Table 1 Most popular DRE livelihood
AC Alternating Current KUSUM Kisan Urja Suraksha Evam Utthan CS 2 Onergy applications under farm and
BEE Bureau of Energy Efficiency Mahabhiyan CS 3 E-Hands Energy non-farm categories
BIS Bureau of Indian Standards kW Kilowatt CS 4 Husk Power System Table 2 Popular DRE Enabled Livelihood
BLDC Brushless Direct Current kWh Kilowatt hours
CS 5 Clean Energy Technology Products
BOOT Build, Own, Operate, and Transfer kWp kilowatt peak
CS 6 Coolcrop Table 3 Member responses, corporate
CFC Common Facility Center LOA Letter of Allotment
CSO Civil Society Organization LPG Liquefied petroleum gas CS 7 Gram Oorja filings
CSR Corporate Social Responsibility LVDC Low Voltage Direct Current CS 8 Techno Village and public announcements
COVID-19 Coronavirus Disease 2019 MFI Microfinance Institution CS 9 Resham Sutra Table 4 Profitability trends amongst DRE
CFA Central financial assistance MNRE Ministry of New and Renewable CS 10 Hydrogreens enterprises between FY20 and
DC Direct Current Energy CS 11 Inficold FY21.
DRE Decentralized Renewable energy MSME Micro, Small, and Medium CS 12 Khethworks Table 5 Pan-India end user financing
DAY-NRLM Deendayal Antyodaya Yojana - Enterprises CS 13 Lits N Lights opportunities amongst DRE
National Rural Livelihood Mission MT Metric ton
CS 14 Navitas Solar Enterprises by State.
DAY-NULM Deendayal Antyodaya Yojana- NBFC Non-Banking Financial Company
CS 15 NBIRT Table 6 Issues Related to Procuring Locally
National Urban Livelihoods Mission NGO Non-Governmental Organization
DPIIT Department for Promotion of NIWE National Institute of Wind Energy CS 16 Revy Environmental Solutions Manufactured Components
Industry and Internal Trade NTFP Non-timber forest products CS 17 Simi Stoves Table 7 Areas of Skill Gap
ECLGS Emergency Credit Line Guarantee O&M Operations and Maintenance CS 18 Katidhan Table 8 Standalone Solar Power Plants/
Scheme OEM Original equipment manufacturer CS 19 Greenwear Packs benchmark cost (General
EPF Employees Provident Fund OPEX Operational expenditure CS 20 Oorja Development Solutions States)
EPFO Employees’ Provident Fund PAYGO Pay As You GO CS 21 Pollinate Group Table 9 Standalone Solar Power Plants/
Organization PCM Phase Change Material Packs benchmark cost (North
FCO Foreign and Commonwealth Office PE Private equity
Eastern States/Hill States/Islands/
FIG Financial Institutions Group PMUY Pradhan Mantri Ujjwala Yojana
UTs)
FPO Farmer Producer Organizations PSB Public Sector Banks
FY Fiscal Year PV Photovoltaic LIST OF Table 10 Street Lights and Solar Lamps
benchmark cost (General category
GeM Government e-Market PLI Performance Linked Incentive
GHE Global Himalayan Expedition REC Rural Experience Center IMAGES states)
GHG Greenhouse Gases RBI Reserve Bank of India Table 11 Street Lights and Solar Lamps
GIZ Deutsche Gesellschaft für R&D Research and Development benchmark cost (North east states/
Internationale Zusammenarbeit RE Renewable Energy Image 1 Sources of Financing Asset Cost Hill states/Islands UTs)
GSM Global Systems for Mobile ROI Return on investment (ROI) Table 12 Standalone Solar Pumps
(in INR Lakhs)
Communication SAUBHAGYA Pradhan Mantri Sahaj Bijli
Image 2 Common facility center at Parna benchmark cost for 2017 and
GST Goods and Services Tax Har Ghar Yojana
FPO. Image courtesy: IFHD 2018
HP Horsepower SELCO Solar Electric Light Company
Hrs Hours SGST State Goods and Services Tax Image 3 Rural Experience Sharing center. Table 13 Standalone Solar Pumps
IC Integrated Circuit SHGs Self Help Groups Image courtesy of Resham Sutra benchmark cost for 2019 and
IEC Information, Communication, and SOFC Solid Oxide Fuel Cell Image 4 What Classifies as MSME : 2020
Education SRLM State Rural Livelihoods Mission. Understanding Revised Table 14 Standalone Solar Pumps
IFHD India Foundation for SWP Solar water pumps Classification WEF 1-Jul-2020 benchmark cost for 2021
Humanistic Development USPC Universal Solar Pump Controller Image 5 Power trailer system
IGEN Indo-German Energy Program UT Union Territory
Image 6 ‘STREE’ by Ecosense Appliances
INR Indian Rupee VC Venture Capital
Image 7 Bioethanol gel based cookstove
IoT Internet of Things WC Working Capital
IREAP India- Renewable Energy WiSH Wind-Solar Hybrid Image 8.1
Appliances Portal Wp Watt peak Image 8.2 Box 1 Common Facility Centers by
ISO International Organization for YTD Year to Date Image 9 An installed solar powered loom Selco Foundation
Standardization bobbin drive in Nalbari, Assam Box 2 Rural Experience Centers
8 9
LIST OF
FIGURES
Figure 1 CLEAN presence in India; Figure 14 Ways through which DRE Figure 25 Mapping Key Issues with Figure 37 Solar street lights and lamps (North
Sample Size: 79 organizations conduct market For-Profit Enterprise Type. Eastern States/Islands/Hill States)
Figure 2 Breakup of Respondents; research. Sample size: 36 Figure 38 Standalone Solar Power
Sample Size 79 Sample size: 10 Figure 26 Map of MSME & Start Up (Upto 10 kW) (General State)
Figure 3 Sales Revenue (Actual vs Figure 15 How do DRE organizations evaluate Registration amongst for-profit Figure 39 Standalone Solar Power
Projected) in FY 20-21. the cost and schedule performance. DRE Enterprises. (>10 kW-25 kW) (General State)
Sample size: 35 Sample size: 20 Sample size: 12 Figure 40 Standalone Solar Power
Figure 4 Unit sales analysis of small ticket Figure 16 Total number of respondents: 57; Figure 27 MSME Categorization of (Upto 10 kW) (North Eastern
size DRE appliances in FY 2020-21. Others include advisory, consulting For-Profit DRE Enterprises. States/Islands/Hill States)
Sample size: 18 and training institutions Sample size: 28 Figure 41 Standalone Solar Power
Figure 5 Cumulative numbers of livelihood Figure 17 Map of ongoing loans of social for- Figure 28 Map of Registered Startups (>10 kW-25 kW) (North Eastern
appliances installed by CLEAN profit enterprises. ROI for Amongst For-Profit DRE States/Islands/Hill States)
members in FY 20-21 Crowdfunding not disclosed by Enterprise Respondents. Figure 42 Participation of CLEAN Members
Sample Size: 34 enterprise. Sample size: 15 in Government Programs in
Figure 6 Top 8 DRE powered farm Sample Size: 13 Figure 29 Multi-Sector impact potential of 2020-21.
livelihood appliances in India. Figure 18 Map of Loan Type Amongst For- DRE Technologies Sample Size: 77
Sample size: 120 Profit DRE Enterprises. Figure 30 Mapping the impact created by Figure 43 Breakdown of Participation of
Figure 7 Top 8 DRE powered non-farm Sample size: 13 DRE Enterprises. CLEAN Members in Government
livelihood appliances in India. Figure 19 Others include advisory, consulting Sample size: 51 Programs in the Past Year.
Sample size: 120 and training institutions. Figure 31 End User Financing Requirements Sample Size 77
Figure 8 Market channels used by DRE Sample size: 21 amongst DRE Enterprises by Figure 44 Enterprises who have sought/not
organizations. Figure 20 Others include promoter debt, Product Cost, Product Type and sought certification.
Sample size: 20 convertible notes and compulsory Expected Beneficiary Contribution; Sample size: 45
Figure 9 Promotional tools and techniques convertible debentures. Sample Size: 14 Figure 45 Reasons for Certification.
used by DRE organizations. Sample size: 21 Figure 32 Primary reason for introducing Sample size: 13
Sample size: 25 Figure 21 Amount in INR signifies median. the innovation. Figure 46 Reasons for not seeking certification.
Figure 10 Challenges faced by DRE Not for profit organizations have Sample size-25 Sample size: 20
organizations. availed debt in the form of overdraft Figure 33 Reasons for not implementing Figure 47 Trend of employment in DRE
Sample size: 35 facilities to cater to daily cash flow energy monitoring systems in organizations.
Figure 11 Strategies implemented by DRE mismatches. DRE mini grids and appliances. Sample size: 59
organizations to adapt to the Sample size: 21 Sample size: 12 Figure 48 Staff relieved in the FY 20-21.
change in market due to COVID. Figure 22 Figure on vertical axis represents Figure 34 How dependent are DRE Sample size: 42
Sample size: 15 number of organizations. organization’s business on imports?
Figure 12 Top three threats for the Sample size: 12 Sample size: 12
penetration of DRE appliances. Figure 23 Revenue Distribution of For-Profit Figure 35 Are DRE enterprises exporting
Sample size: 33 DRE Enterprises for FY21. their products?
Figure 13 Market research conducted by Sample size: 29 Sample size: 22
enterprises to adapt to the changes Figure 24 Map of key issues cited by For-Profit Figure 36 Solar street lights and lamps
in market scenario due to COVID. DRE Enterprises. (General States)
Sample size: 32 Sample size: 36
10 11
EXECUTIVE SUMMARY
With the government looking at energizing Based on the responses to the survey TABLE 1
the country with renewable energy in a big questionnaire, analysis of inputs from
way, the role and significance of Decentralized various sources, and interaction with several FARM LIVELIHOODS NON FARM LIVELIHOODS
Renewable Energy (DRE) has increased stakeholders (both members and others),
Solar water pumps Solar sewing machine
manifold. While DRE has proven to be the CLEAN has put together this year’s “State of
Solar refrigerator and freezer Agarbatti making machine
most effective source of reliable and affordable the DRE Sector in India – Insights from CLEAN”
Solar rice huller and polisher, Solar fence
energy for the underserved, last mile Report. The executive summary presents the
Solar/biomass cold storage rooms Puffed rice making machine
population, its productive usage is slowly but main highlights of this report.
Solar atta chakki/flour mills Solar sugarcane juicer, Solar weaving looms
surely starting to boost livelihoods; along with
associated economic and social benefits such • The survey findings reveal that access to
as improved quality of life, higher incomes, etc. basic lighting and clean cooking methods
continues to be a felt need. Government • Despite the Covid-19 pandemic, the sector • It was observed that even though a
With COVID-19 severely impacting the socio- measures towards this are consistently did reasonably well in terms of financial stringent lockdown was not imposed by
economic activities and impeding the access to being supplemented by DRE practitioners. performance and fund raising activities. It the government, enterprises still faced
health and well-being for millions, especially was observed that after the first wave and challenges of reduced demand from
the poor, DRE has once more demonstrated To quantify the need, CLEAN members ensuing nationwide lockdowns, enterprises customers and supply chain disruptions -
its relevance through technology innovations (limited by the number of responses) were, in general, better prepared to two key reasons why financial performance
focused at catering to the rural poor such as deployed more than 1.34 lakh improved tackle uncertain business situations (even continues to be sub-optimal. The total
solar powered drives for machine operated cookstoves, 7000+ biogas plants and close outside of Covid-19 and its aftereffects). number of organizations running into losses
loom industry etc. to 2 lakh units of solar lights, fans and solar Businesses quickly learnt to establish increased by 3.1% and those making profits
home systems of various configurations. better financial control, thereby, instilling decreased by 4% from FY20 to FY21.
Similar to the past four editions of the State of resilience in their business models.
the DRE Sector in India reports, the fifth edition • An uptake in DRE livelihood applications • DRE enterprises continued to raise capital
presents the findings of a market survey where were also recorded. More than 10000 • Out of the total responses received, it despite financial stress and economic
insights of 70+ member enterprises were dryers, 3500 solar water pumps and was observed that approximately INR slowdown. It can thus be inferred that
captured. DRE businesses amid the waves 5600 other livelihood applications were 158 Crores of capital was raised by DRE enterprises which were successful in
of Covid-19 pandemic, have shown a lot of deployed. enterprises (21 nos.) with more than 85% raising capital were able to demonstrate
resolve. The grit shown by DRE enterprises, of funds raised through a combination of resilience and project financial strength
coupled with innovative thinking has well • It was observed that there were increased debt finance and private equity mode. Debt to the lenders/investors. 20 for-profit
and truly led DRE businesses to evolve and intervention focussing on the health and finance came out as the most popular form social enterprises stated that they made
succeed. well-being of rural communities. CLEAN of fund raising adopted by DRE enterprises, no profit in FY20. 25% of these profited in
members solarized 2500 health centres in fulfilled by private and public sector banks FY21 on account of rural/community-level
However, there have been constant challenges the last FY. for FY21 and FY22 (Till October’21). This connections built by these organizations
and constraints along the way. This report was followed by private equity, grant which helped them fulfil specific orders
showcases all this and other key developments • According to a GIZ supported CLEAN capital and CSR funds. The quantum and maintain business continuity. Of the
from the sector, through the lens of CLEAN assessment, the most popular DRE of funds raised via private equity was aforementioned (75%) organizations that
member enterprises across the realms of livelihood applications under farm and non- significantly higher than that availed via suffered losses in FY21 as well, 40% were
technology, markets, finance, policy, and skills farm categories are: debt finance among for-profit enterprises. successful in raising fresh funds during
and training.
12 13
FY21 and FY22 (YTD) through a gamut of pico/micro hydro should also be taken into • The methods for lab testing of biomass team strength remained unchanged, and
sources such as grant capital, debt finance consideration. Similarly, one year, according cookstoves, as well as the BIS standards 22% shared that they had to lay off staff
and private equity. to small wind turbine suppliers, is a long for biomass cookstoves, should include to make it through the challenging time.
time to evaluate the feasibility of the project protocols for field measurements of Additionally, 42 DRE organisations offered
• With demand picking up and businesses for wind system installations. The sub- biomass cookstoves in the clean cooking a consolidated 392 new job opportunities,
realigning their strategies for the new sector members advocated for the small sector. In the next few years, solar-powered with 80 percent of new employees being
financial year, end user finance was one wind turbine component manufacturing to electric cooking is also likely to gain men and the remaining 20% being women.
of the key requirements which businesses be potentially included in the Production traction.
cited, in order to aid growth and scale Linked Incentive scheme to support local • It was observed that maximum training
up. However, creating end user financing manufacturing. • According to CLEAN member enterprises, sessions were held online due to Covid-19.
linkages presents its own set of challenges sales agents and joint promotions CLEAN member enterprises operating in
in a sector wherein end user beneficiaries • It is predicted that the announcement of PLI (partnerships with NGOs and MFIs) were the skills and training sector shared that the
are unbanked and not exposed to formal schemes for energy storage manufacturing the most effective marketing channels for change to online training sessions enabled
lending mechanisms. will contribute to lower energy storage them. It was found that the establishment them to reach out to a wider stakeholder
prices and, as a result, lower DRE based of common facility centres also aided in base across the country.
It is worthy to note some of the innovative project costs in specific. sensitizing rural inhabitants and turning
structures designed by CLEAN members them into potential customers. Post the trainings, the average
such as ONergy to address these • DRE sector companies have focused their employability of participants was
challenges, where transformative impact R&D efforts on addressing difficulties at • The benchmark costs for off-grid and around 87 per cent. A total of 2514 local
was created by establishing end user the grassroots level, improving end-user decentralized solar PV systems have seen experts were trained in the operation and
financing linkages through banks supported experience, and increasing application a consistent decline over the years. This, maintenance of DRE products and services,
by a first loss default guarantee and reliability. This includes modifications to against the background of increasing as well as in the fabrication of solar lights,
formation of Water User Groups (refer Case enhance efficiency, small scale energy import duties and GST rates has created a by 31 DRE firms and NGOs.
Study on Page 44 and 45 to know more). metering systems etc. financial burden on both enterprises as well
as end consumers.
• It was observed that across all product • It was observed that there was an
and price categories end users are willing emphasis on recognising and certifying • 46% of the respondents stated that they
to pay 23% to 30% of the product cost renewable energy-powered applications. have been able to leverage Central or State
upfront as down payment. This is indicative The common ask was that government Government programs to deploy their
of the gradually increasing confidence should consider issuing tentative products. A predominant number of these
that beneficiaries have in DRE products. A certificates to technological innovations, solutions were solar based, highlighting
separate independent small sample size allowing businesses and products to apply the need for policy support for other sub-
survey recently carried out with 14 CLEAN for government programmes. sectors.
members brought forth a requirement to
create end user financing linkages through 67% of the enterprises responded that • It was observed that travel restrictions
loans for 350+ end user beneficiaries. they have not sought certification for their due to Covid-19 halted local job growth
products. The key reasons for this included through DRE, as the supply chain remained
• The PLI schemes announced for solar panel – lack of standards for their application/ disrupted.
and battery manufacturing have received an product, lack of access to testing/
overwhelming appreciation by the sector. A certification centers, high costs of testing/ • In FY 20-21, 36% of the respondents
common emerging point was that support certification, and lack of policy support for shared that they had increased their
to local manufacturing in other renewable their product/application. human resources. 42% shared that their
energy sectors such as wind, biogas and
14 15
OVERVIEW OF RESPONDENTS
Conducive policy environment, market demand, organizations, civil society organizations
availability of finance, adequate workforce, (CSOs), etc.)
and continuous development of solutions
through technology innovation play a key role in 79 CLEAN member organizations
strengthening the ecosystem of the DRE sector. participated in this year’s survey.
The insights presented have emerged from Through the survey, CLEAN has tried to
CLEAN’s annual survey with its members capture insights on the following aspects:
and key stakeholders (including enterprises, (a) market, (b) finance, (c) technology,
financial institutions, non-government (d) policy (e) skills and training.
60
48
50
40
30
23
20
10 5
3
0
Other
Non-Government Organization/Not for
Manufacturers /System
Training Institute
providers/Distributors
Integrators/Service
Profit Organization/Civil Society
Organization
No. of CLEAN Members
0 26
FIGURE 1: CLEAN presence in India. FIGURE 2: Breakup of Respondents;
Sample Size: 79 Sample Size: 79
16 171.1 Sales Revenue
1. Overview of Sales revenue figures shared by CLEAN members highlights that 44% of the DRE enterprises had
the DRE Market annual sales revenue less than INR 50 lakhs in FY 20-21. Out of the 44% DRE enterprises, 13.33%
had predicted an annual sales revenue between 1 crore to 5 crore, but had a sales revenue less
in 2020-21 than INR 50 lakh.
Micro enterprises which majorly sell livelihood appliances have reported sales revenue of less than
With a focus on livelihoods and income INR 50 lakh. Newly formed DRE enterprises reported a similar revenue in sales.
generation, India’s Decentralised Renewable
Energy (DRE) sector has become an enabler Approximately 35% of the respondents had sales revenue between INR 1 crore and 5 crores. Two
of economic growth, particularly in rural DRE organisations (a solar PV module manufacturer and a solar livelihood solutions provider) have
areas. The impact of the unprecedented reported an annual sales revenue between INR 50 crore to 100 crores.
COVID-19 epidemic on the Indian
decentralised renewable energy sector,
40
like others, was felt since the very
beginning of the year 2020. While DRE
35
businesses are still dealing with the issue, 2 2
they have shown resilience. 30 2 2
3 2
50 Crores to 100 Crores
Number of organizations
This chapter provides an overview of the 25
10 Crores to 50 Crores
key factors driving the deployment of DRE
12
technologies sales revenue, details of 20 12 5 Crores to 10 Crores
technologies deployed, market channels 1 Crore to 5 Crores
being utilized, challenges, and coping 15 1
50 Lakhs to 1 Crore
mechanisms being utilized. 5
10 Less than or equal to 50 Lakhs
15
5 10
0
Projected sales revenue Actual sales revenue
FIGURE 3: Sales Revenue (Actual vs Projected) in FY 20-21. Sample size: 35
1.2 Deployment of DRE Technologies
After the covid lockdown restrictions were lifted, the CLEAN members implemented several DRE
based projects in order to contribute to clean energy access and rejuvenation of rural economy.
1.2.1 Sales details for FY 20-21
Solar lights, solar home systems, and improved cookstoves were the top three DRE appliances
sold in the previous fiscal year, according to survey respondents. This confirms that the need for
basic lighting and clean cooking methods persists, and that government’s various initiatives on
energy access are complemented by these efforts.
18 1916 CLEAN COOKING: have been deployed under Component B of
> 50,000 units
Under the clean cooking sub-sector, 8 CLEAN KUSUM scheme [2].
14 members altogether have sold more than 1.34
2 lakhs energy efficient biomass cookstoves 14 Solar Cold Rooms of the capacity 5MT (Solar
12
1 1
30,000 - 40,000 units and 6 members have installed 7000+ biogas PV capacity- 7kWp) and 3 bulk milk chillers
1 1 plants, majority of which are of capacity 2cu.m. were deployed by CLEAN members who took
Number os organizations
10
1 part in the survey.
2 10,000 - 20,000 units
SOLAR HOME SYSTEMS:
8
2
In the solar home systems and household- Miscellaneously, a total of 5600 units livelihood
6 5,000 - 10,000 units based products, CLEAN members have sold appliances such as solar powered sewing
1
8000 Brush Less DC fans. Most of the sales machines, solar weaving looms, solar yarn
9
4 8 were made for government projects related making machines, solar pottery wheel, solar
1,000 - 5,000 units
to rural electrification under SAUBHAGYA rope making machines, solar blacksmith
5 5
2 scheme. blower, solar roti making machines, solar
1 < 1,000 units
weaving looms, solar yarn making machines,
0 Solar lanterns are one of the highest sold solar egg incubators, solar animal repellent,
Solar lanterns Solar home systems Improved Cookstoves Solar street lights DC Fans
appliances. More than 90000 Solar lanterns food processing machines, solar drinking
were deployed by 12 DRE organisations. water solutions, power hammer etc. have been
FIGURE 4: Unit sales analysis of small ticket size DRE appliances in FY 2020-21. Sample size: 18
deployed by 11 DRE service providers. Majority
Due to growing aspirations of customers, the of the installations were done by SELCO and
1.2.2 Highlight of DRE deployments done by CLEAN members in FY 20-21 enterprises have also reported to have sold Resham Sutra (approximately 5000).
more solar home systems compared to Solar
lanterns. 14 DRE enterprises who participated Out of the 5600 livelihood appliances,
12
in the survey recorded solar home systems approximately 300 vertical fodder growing
sales in excess of 1.3 lakhs units. stations, 75 solar animal repellents, 3 pellet
10 2
making plants have been commissioned.
LIVELIHOODS:
5,000 - 10,000 units Under the livelihood sub-sector, product Mini grid providers have powered livelihood
1
8 suppliers with a dedicated product line for anchor loads such as carpentry shops, oil
Number of organizations
1,000 - 5,000 units
1 solar dryers have cumulatively sold 10000 expellers, sewing machines.
2
1 solar dryers of various types and sizes.
500 - 1,000 units
6 Few DRE enterprises have offered energy as a
1 1 1
Out of these, a small quantity was deployed service to a total of 750 vending carts, barber
100 - 500 units
1 by established DRE service providers who shops, grocery shops and agri-processing
4
1
have started expanding their businesses in the centres.
50- 100 units
6 productive end use market.
5 5 5
2
HEALTHCARE AND EDUCATION
< 50 units
3 A total of 15 biomass dryers have been INFRASTRUCTURE
commissioned as per the one CLEAN member. DRE service providers have energised education
1 1
0 263 solar freezers were deployed in the last and healthcare infrastructure (Primary
Other Solar dryers Biomass Solar water Biogas Solar Solar cold FY. Majority of the sales were from DC freezer Healthcare centres, Anganwadi centres), and
livelihood dryers pumps freezers storage
appliances
manufacturers directly. panchayat buildings with DRE solutions. CLEAN
members have powered more than 2500 such
FIGURE 5: Cumulative numbers of livelihood appliances installed by CLEAN members in FY 20-21 In the last FY 20-21, 9 DRE manufacturers centres in the last FY.
Sample Size: 34 and service providers have installed 3560
solar water pumps of which 3000 were The sizing of health centres varies from 2kW to
(Note: The figures in the following section include ONLY deployments made by CLEAN members implemented under KUSUM scheme. Till 8kW depending upon the size and the population
who participated in the survey) December 2020, 372,999 Solar Water Pumps the health centres are supposed to cater.
20 21MINI GRIDS the mini grid installations have reduced due to
The cumulative capacity of mini grids installed logistical and lack of reduced financial strength
by 9 service providers in the FY 20-21 is 1.32 of the consumers as well as movement of
Solar sewing machines
MW. Few DRE service providers reported that funds towards efforts against COVID.
Agarbatti making machine
1.3 Popular DRE Enabled Livelihood Products Solar fence
Puffed rice making machine
In a separate demand mapping study such as State Nodal Agencies, State Rural
supported by GIZ India under its IGEN- Access Livelihood Missions, System Integrators, Last Solar-powered weaving looms
II Programme, CLEAN identified the top 5 farm Mile Distributors, NGOs and CSOs. Based on
and non-farm livelihood appliances in India. the 120 responses received during the survey, Solar Sugarcane juicer
An online questionnaire was circulated among the identifiedhe top five farm and non-farm
Solar Animal Repellent
various stakeholders within the DRE ecosystem livelihood appliances are listed below.
Solar silk reeling & twisting machines
TABLE 2: Popular DRE Enabled Livelihood Products
0.00% 5.00% 10.00% 15.00%
FARM LIVELIHOODS NON FARM LIVELIHOODS
Percentage of repondents
Solar water pumps Solar sewing machine
Solar refrigerator and freezer Agarbatti making machine
Solar rice huller and polisher, Solar fence
FIGURE 7: Top 8 DRE powered non-farm livelihood appliances in India. Sample size: 120
Solar/biomass cold storage rooms Puffed rice making machine
Solar atta chakki/flour mills Solar sugarcane juicer, Solar weaving looms
Solar/Biomass dryer
1.4 Market Channels and Promotional Techniques
Other
Solar water pumps
Retail
Solar refrigerator and freezer
FPOs
Solar rice huller & polisher
Solar/Biomass cold storage room Online/eCommerce
Solar/Biomass dryers Partnerships with Government (SRLM,
Ministries, etc. )
Solar Atta chakki/ flour mills
Partnerships with MFIs
Solar spice grinder
Partnerships with NGOs
Solar pulses processing machines
Sales agents
0.00% 5.00% 10.00% 15.00% 20.00%
Percentage of respondents
0 5 10 15 20
Rank 1 Rank 2 Rank 3
FIGURE 6: Top 8 DRE powered farm livelihood appliances in India. Sample size: 120
FIGURE 8: Market channels used by DRE organizations. Sample size: 20
22 23• DRE organisations use multiple marketing channels to promote and sell DRE appliances.
Sales agents, partnerships with NGOs and retail shops are the three most popular marketing
The processing and transportation overheads have reduced due to inhouse processing
channels as per the survey. Sales agents usually have strong relationships with the local
and lower dependency on external parties. With mechanization, the drudgery involved in
population. They also contact potential customers through cold calls.
manual processes have been eliminated. Since the CFC is situated in a heavy rainfall area,
• The respondents highlighted that the Women entrepreneurship model - where the local
there were frequent power outages due to rain. Post deployment of solar PV infrastructure,
women from the village are trained is one of the successful models. Through this model the
uninterrupted power supply has been ensured.
customer engagement is high and the women entrepreneurs instil confidence in villagers.
• ‘Other’ marketing channels used by DRE organisations include Government e-Marketplace
(GeM), distributor partnerships with other micro grid providers, and wholesalers. Sources of financing assets cost (in Rs. Lakhs)
BOX 1: Common Facility Centers by Selco Foundation
23%
COMMON FACILITY CENTER MODEL
Project grant
SELCO Foundation has worked with India Foundation for Humanistic Development (IFHD) 59% Own investment
on developing a Common Facility Center (CFC) model. In Parna FPO, a CFC model has 18% Bank loan
been established. Since horticultural and agricultural produce are seasonal in nature,
many processing centers catering to single or a few select produce remained unutilized
during off seasons.
By developing a CFC which can cater to a wide variety of produce, the facility center
now remains functional throughout the year. IFHD facilitated discussions between FIGs
and SHGs to identify a common facility center which can be convenient for everyone. IMAGE 1: Sources of Financing Asset Cost (in INR Lakhs)
Presently, 7 enterprises use the CFC. It was also leased out to other private entrepreneurs
on a job work basis.
Parna FPO has 525 members who are engaged in the cultivation of paddy, coconut,
arecanut, pepper, turmeric, mango, cashew, jackfruit, and NTFP produce. The FPO has a
share capital of 5.8 lakhs and its members are also part of FIGs and SHGs.
Clean energy enterprises dealing with areca leaf plate making, herbal soap extraction,
turmeric powder, banana chips making, kokum extraction, and pickle making were set
up. DRE solutions such as biogas, solar PV system, and dryers were installed. Solar PV
system cost was around 5 lakhs, the machinery cost was around INR 4 lakhs, biogas
systems cost was around INR 50000.
A common solar infrastructure with Solar PV capacity of 7.5 kWp was installed by SELCO
Foundation to power the machinery.
A term loan worth INR 2.24 lakhs at 8 % rate of interest was facilitated by IFHD from
Mensi Coop society. The grant money from SELCO Foundation was approximately 5.73
lakhs and the FPO contribution was 1.7 lakhs. Out of the total revenue of 5.8 lakhs, 45%
of the revenue was generated through the CFC. IMAGE 2: Common facility center at Parna FPO. Image courtesy: IFHD
24 25BOX 2: Rural Experience Centers 1.4.3 Partnerships
DRE organizations sell/deploy products through partners such as NGOs, State Rural Livelihoods
Society. Solar lighting manufacturers and biomass cookstoves manufacturers sell products via
their MFI network. Organizations supplying energy monitoring and remote monitoring systems
RURAL EXPERIENCE CENTERS
often have partnerships with mini grid and microgrid players.
Resham sutra has set up rural experience centers for Solar silk processing machines in
Chhattisgarh and Assam. A Rural Experience Center (REC) serves as a hub for clusters
1.4.4 Promotional tools used by DRE Organizations
of villages practicing sericulture. RECs also serves as a hub for decentralized production According to a survey by Boston Consulting Group [1], almost 70% of rural population access
of yarn and a channel for selling the machines of Resham Sutra. The villages lie at the social media. Based on the survey carried out by CLEAN, live community demonstrations stood
end of the spokes wherein the beneficiaries reside. The raw material is procured from the first and social media being the second most popular approach for promoting DRE appliances.
villages. At Rural experience centers, the raw material is converted to yarn by using the DRE service providers work with rural marketing agencies to promote their products.
solar silk processing machines in the center. Through the buyback model, Resham sutra Given the popularity of this approach, rural marketing campaigns need to realign and evolve
procures the yarn and then identifies potential customers to sell it. continuously through better and effective targeting of rural consumers since the market, products
and end customer are ever evolving.
Currently REC, as a sales channel accounts, for 8% of the total sales of the machine
segment for Resham sutra and is expected to grow up to 10% in the next two years.
For the yarn segment, it is expected to account for 12-15% of the total sales. Resham • Ecosense uses Instagram, Facebook and their website for lead generation.
sutra partners with Self Help Groups in the region and creates awareness regarding the • Raheja Solar shares success stories in LinkedIn and Facebook. Leads are generated in
benefits of Solar powered silk processing machines. The beneficiaries become indirect LinkedIn and Indiamart. They also contact FPOs via LinkedIn and cold calls.
sales agents for Resham Sutra by advocating for these machines. To facilitate the credit • A government school teacher in Nagaland posted in social media about the lack of
for buying the machine, Resham Sutra connects beneficiaries with the local financial electricity in the Shinnyu village of Mon district. His post connected him with the
institutions. RECs also engage in the skill development of beneficiaries that helps in Global Himalayan Expedition (GHE). GHE coordinated with the teacher and district
encouraging entrepreneurship in the area. The center also provides advisory services to administration and deployed mini grids in the village.
the beneficiaries in business planning skills that helps them in building forward linkages • Community demonstrations is the top promotional technique used by DRE organizations.
in the value chain and sale of yarn to potential customers.
Radio advertisements
IREAP
Roadshows
Paid advertisements in the community
Experience sharing centers
Newspapers
Product Exhibition at Custom Hiring Centres
Door to door demonstrations
Flyers
Other
Social media
Community demonstrations
IMAGE 3: Rural Experience Sharing center. Image courtesy of Resham Sutra
0 5 10 15 20
Number of organizations
FIGURE 9: Promotional tools and techniques used by DRE organizations. Sample size: 25
26 27CASE STUDY 1
BIHAR SRLM - Below Poverty communities. To implement
the project, TERI in partnership with JEEViKA,
ecosystem that comprised of enterprise-based
delivery model and institutionalization of last
lower business risks, EEs are able to provide
customized renewable energy-based solutions
SOLAR SHOPS picked Purnia as one of the first places to mile EEs or Uttam Urja Kendras. EE was the to rural consumers and that too on terms that
begin with. Purnia is one of the most poverty- key business unit between a manufacturer are mutually agreeable upon between the EE
stricken districts of Bihar. 89 per cent of the and end user as it ensured supply of quality and buyer.
households, only 8 per cent have access to products to the end user.
electricity and the district holds a network of
over 40,000 women SHGs or self-help groups The EE entrepreneur operated from a brick- ABOUT THE ORGANIZATION
(BRLPS 2015a). Each group on an average has and-mortar structure that was sometimes --------------------------------
membership of 10–20 women. TERI concluded build inside the village and at times on the BRLPS is community-based organization
Dhamdaha block would be the most apt area outskirts. EE operated as a micro-enterprise working with 11.7 million rural women of
for intervention. and lived close to target audience to interact Bihar with the aim of holistic development
with them on daily basis. The network of EEs of community. JEEViKA is working on various
is an important factor to increase after sales sector like Health, Financial inclusion, Capacity
PROBLEM: INTERVENTION: service delivery of clean energy products to the building, Livelihood, Social development,
-------------------------------- -------------------------------- remote areas. Institutionalizing and operating enterprise devpment etc. Community
Bihar has been ranked as one of the poorest Market creation was an evident and important EE requires relatively small ticket funding and enterprise development is one of key activity
states in India consistently. To address step. It was mainly achieved in three stages, EEs operate at relatively lower business risks. of JEEViKA to strengthen and ensure livelihood
shortage of electricity access in Bihar, various namely, seeding, base building, and growth As the last step, TERI placed orders to of rural community members and the idea is to
grant and subsidy linked models were brought and consolidation. In Purnia, TERI developed manufactures and vendors to facilitate the open 3000 solar energy based enterprises in
to state in the form of solutions. On the other indicators, basis which JeeVika picked villages growth in the village. In the more later and Bihar in all 38 districts and 534 blocks with an
hand, there was also a gradual shift in private for implementation. Field surveys highlighted mature stages, EE will place the orders (at aim to localize solar energy services at village/
and individual models who wanted to work on the apparent need of energy solutions that times) under supervision from TERI. More community level.
generating and distributing electricity through would meet basic requirements in communities than 30 men from the SHG families were
independent and decentralized systems or such as lighting and mobile handset charging. incentivised to gain technical training at the
otherwise as retail stand-alone products. TERI then, to address the specific needs of EE during the course of implementation.
But there were loopholes which needed to Damdhaba block, designed and tested a
be addressed. First, due to lack of technical customized solar home lighting system (SHLS).
knowledge there was no after sales service and The system comprised of two LED luminaries IMPACT:
absence of spares-bank to replace damaged and a socket for mobile charging that were --------------------------------
goods made clean energy products less powered by a battery charged through a solar With support from JEEViKA and DFID, TERI
trustworthy. Second, value added resellers, panel. To solve the infectiveness of SHLS facilitated access to clean lighting to over
operating on a small scale, fixed configurations in seasonal variations, TERI built a custom 13,000 self-employed women or SHG
of products only they sourced and were not SHLS 12V system that required a 10 Ah lead- members of JEEViKA. Since commencement of
equipped to customize energy systems to suit acid tubular battery. The aim was to convert JEEViKA-TERI partnership, three EEs14 have
specific household energy needs, making their demand to actual purchase, JEEViKA agreed to been working closely with SHG members.
offerings limited in scope and responsiveness. facilitate up to 60 per cent of the hardware cost Independent of TERI, together, these EEs have
Third, these situations also lead the value- as a loan to its SHG members. undertaken sales of over 0.15 million since
added resellers to stock cheaper equipment TERI’s clean energy partnership with DFID led institutionalization and have scaled up their
that allowed them to sell product at higher to the extension of viability gap funding of upto product/service portfolio that includes sales
rates. 40 per cent of the hardware cost. Together of standalone solar systems and assembling,
with soft loans this led to successful purchase installation, and commissioning of higher
Therefore, it became vital to design a market- of SHLS by SHG members. specification products in rural areas of Bihar.
based approach that supports the need of This has also attracted interest of external
renewable energy products and services for In Purnia, TERI aided the formation of the players in the solar business. With relatively
28 291.5 Challenges Faced by DRE Organizations Other challenges highlighted by DRE organizations - Uncertainty and threats of repeated
lockdowns, monopoly during lock down by online e-commerce companies, loss of demand/
business, unavailability of good DRE products to market.
A majority of CLEAN member organizations In addition to the above, micro enterprises
reported supply chain management and local working on newer technologies such as the
warehousing as the key challenge faced by solar hydroponics system, bioethanol-based 1.5.1 Coping mechanisms adopted by DRE organizations
them due to the COVID-19 pandemic. stove, among others have had difficulty in
achieving convergence with government Over the past two
The outbreak of COVID-19 in 2020 had halted schemes. This was attributed to a lack of years, COVID and
the pace of growth in the sector. Even after the supportive policy measures for their respective recurrent partial 9% 9%
withdrawal of curbs and initiation of activities, technologies. region-specific Changes in the supply
lockdowns have chain team
players faced challenges in the transportation
posed multiple 18% Increasing the
and movement of DRE appliances. The other challenges cited by DRE
challenges for the productivity
organizations include:
A strong need that has emerged from the • Uncertainty due to repeated lockdowns DRE ecosystem. Expanding the product
line
CLEAN member community is that there is a • Reduced paying capacity of end consumers
need in the sector to streamline the movement and thereby a lack in demand Yet, the DRE sector 64% Providing product
development services
of DRE goods by partnering with other • Lead acid battery manufacturers faced has shown resilience
organizations which in turn is likely to reduce challenges in procuring lead due to during this crisis,
the transportation cost borne by fluctuating costs. micro enterprises
• Other than conventional DRE appliances have reportedly faced
DRE manufacturers and system integrators. like solar home systems, skill gaps exist in the ill-effects of the FIGURE 11: Strategies implemented by DRE organizations to adapt to the
Development of a platform for aggregate service and repair of livelihood appliances. pandemic. change in market due to COVID. Sample size: 15
level purchase, transportation and shared
warehousing services will be useful for the Establishments of shared service centers for Faced by uncertainties, DRE organizations There are other instances where CLEAN
sector. a pool of DRE appliances should be promoted adopted multiple coping strategies to keep members supported the government to create
between DRE practitioners operating in the their business afloat. Some DRE organizations awareness by organizing healthcare camps.
same region. reduced their profit margin to keep the Some biomass cookstove manufacturers
business afloat during COVID. Doorastha included LPG stoves in their product line in
Analytics, a member of CLEAN, had waived order to diversify their product offerings, as a
Operation and Maintenance of commissioned off the mini grid tariff during COVID, as the coping strategy.
projects end-customers’ business was completely shut
down during the lockdowns. Another CLEAN There was increased focus towards healthcare
Shortage of manpower in sales and
member organisation, Oorja Development related interventions. Few DRE enterprises
maintenance teams
Solutions extended the credit period for reported distribution of pulse oximeters,
Convergence with government loans. Few DRE organizations ventured into sanitizers, masks, medicine and created
schemes/programs
the productive end use segment by offering awareness regarding COVID-19 to get through
solar dryers, solar cold storage solutions at the tough period.
Other
reasonable costs.
Unlocking finance
1.6 Opportunities and Barriers for DRE
Supply chain management
While a number of social entrepreneurs and replicate or scale these solutions quickly is a
0 2 4 6 8 10 12 14 16 practitioners have stepped forward to increase major barrier. This failure to scale or replicate is
Number of organizations the usage of decentralized solutions to bridge due to the lack of a supportive ecosystem.
the energy access gap, their inability to
FIGURE 10: Challenges faced by DRE organizations. Sample size: 35
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