SELCO Solar is a social enterprise in India that provides solar energy products and services to 180,000 households through 41 branch offices. It generates $4 million in annual turnover by selling energy services rather than products, allowing very poor customers to pay around $5 per month for kerosene-equivalent light that costs 20 times less than kerosene. To scale this model, SELCO focuses on building partnerships with banks, investors, and social protection programs to continue targeting the poorest customers with patient capital, brand building, and gradual expansion.

1. Global Infrastructure Basel
Martin Hiller, REEEP
22 May 2014
Infrastructure finance for
Bottom of the Pyramid

5. US$5.- per month on kerosene
20 times more light

7. SELCO Solar
US$4 million turn over
180,000 households supplied
41 branch offices
Incubation Centre
Foundation – R&D

8. Value
proposition:
Sell energy
services
Bank
relationship
Customers:
Micro entre-
preneurs,
urban context
Channels:
Branches,
partners
Requirements:
bank relations,
tech capacity,
after sales, brand
SELCO Business Model

9. How to scale SELCO´s model?
• ^ … among poor
and very poor
clients
• Keep the focus
on poorest
customers
• Social Protection
Systems
• Investment non-
profits
• CSR of banks
• Build up the
company step by
step
• Low ROI, slow ROI
Patient
capital
Unusual
investors
Brand
building
Target
the
Poorest

10. Martin Hiller, REEEP
22 May 2014
Thank you!

11. Branches