• The one-stop-shop model – a single organisation providing both the
energy product and the finance to the customer. This model allows the
organisation to control and manage all aspects of the business. The
enterprise must have strong capacity with both finance and energy
products.
Grameen Shakti. GS has used its Grameen Bank
microfinance experience to establish one of the largest
and fastest growing rural renewable energy companies in
the world. GS promotes ICS and biogas plants, and has
installed more than 300,000 SHS to rural households in
Bangladesh. GS installs SHS to customers for a down
payment and monthly repayments. GS engineers provide continued after sales
service. Other key activities include advocacy and promotion, technology
development and community involvement.40
• The partnership model – the energy enterprise provides the energy
product and technical services, and a separate finance organisation
provides credit to the end user and manages the repayment. This model
allows both organizations to stick to their core expertise but requires good
coordination and management for a successful partnership.
SELCO Solar Pvt Ltd. SELCO is a social enterprise
established in India to provide sustainable energy
solutions and services to under-served households and
businesses. SELCO provides technical services
(products, installation and after-sales services) and
linkages to appropriate finance institutions for customers.
SELCO works with solar PV, solar thermal and improved
cook stove technologies. SELCO has forged
partnerships with nine regional rural banks, commercial banks, NGOs and rural
farmer cooperatives that provide finance to end users.
• The franchise/dealership model – an organisation provides credit for the
energy product to franchises and/or dealers for them to sell to customers.41
The dealer or franchise may also provide technical services. This model is a
way of increasing sales networks to reach more customers, especially in
remote regions. The dealer or franchise must have the capacity to provide a
quality service and manage repayments from the customer.
Rural Energy Foundation (REF) – solar PV case
study (Chapter 2). REF arranges credit to solar product
retailers and customers through an agreement with local
financial organization. This entails proper selection of
financial institutions to partner with, careful selection of
retailers, micro-entrepreneurs and saving customer
(groups), training and accompaniment of the bank
employees, and intense business coaching of the retailers.
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