Powering Livelihoods
Powering Livelihoods, just as the two terms suggest, is literally about energising livelihoods in peri-urban and rural areas through clean energy. We have been looking at various kinds of clean technology-based livelihood solutions. Imagine things like a waste biomass-powered cold storage helping a farmer producer organisation extend the shelf life of lemons so that they can increase income. Imagine cold storage being run on solar and helping a group of women improve their income. Imagine a solar-powered hydroponics unit that is helping grow fresh green fodder for animals in rural, semi-arid, dry conditions where green fodder is scarce. Imagine a clean energy-powered spinning machine reeling silk from cocoon to yarn, reducing the drudgery for women who otherwise used to do thigh reeling. These are just a few examples, but there are about 20 technologies we have been working on to help improve incomes at the first mile.
Decentralised Renewable Energy (DRE)
Over the last 15-20 years, we have reached a point where it is possible to generate energy where it is needed, rather than depending on thermal power plants located thousands of miles away. Instead of long transmission lines, energy can now be generated right at the point of use, whether on the farm or beside the household, using rooftop solar systems, biomass, or small hydro. Solar is more widespread due to its availability. Energy generation can now be local and renewable, and used when it is most needed.
This has opened up many possibilities — for livelihoods, household use, community services, healthcare, and education. Distributed renewables are becoming a new way of generating and delivering energy. In the future, energy systems will likely be more decentralised, where people can even trade energy locally. If someone is generating more and a neighbour needs it, that energy can be traded. The future will be decentralised, digitised, and decarbonised.
How the Ecosystem Works
At one end, you need technology, such as solar panels. There are now many private suppliers from whom one can buy and install systems on rooftops or commercial establishments. On the other end, if someone is running a micro-enterprise in a rural area, for example an atta chakki (flour mill), they might be currently using diesel due to unreliable power. This can now be replaced by solar, making the operation fully clean energy-powered.
This also improves machine efficiency due to reliable power and saves on input costs, as diesel prices are high. It benefits both the environment and the business. There are now solution providers offering integrated packages — not just rooftop solar but an optimised system that includes the flour mill. This reduces both capital and operating costs.
We are supporting such integrated solutions — whether it is solar refrigerators for small stores or fisheries, solar-powered looms for weavers, or solar dryers for horticulture produce like tomatoes or flowers. These increase both the value and shelf life of products, improving income on the ground.
Business Opportunity
We estimate the collective market for these solutions at around $50 billion, potentially impacting 37 million livelihoods in India. And this reflects only the current potential. There is much dependence on agriculture and labour in rural areas, which limits value addition and economic opportunities. These cleantech solutions can diversify income sources and bring value addition closer to where people live, reducing the need for migration to cities.
For example, green fodder has a $4 billion annual market in India due to its shortage. These solutions require minimal land. Vertical stations in a house courtyard can produce fodder for four animals with an investment of only Rs 40,000. It is cost-effective, boosts milk yield, improves animal health, and delivers quick benefits to farmers. This is the scale of opportunity.
Decentralised Challenges
Technology requires maintenance and after-sales support. That is one area we are working on intensively with manufacturers, technology deployers, and the community. For example, if a solar refrigerator company installs five units in a village, it is not viable to station a dedicated technician there.
But if 20 different technologies are deployed in the same area, we can train one local person to handle repairs, and the cost can be shared. We are working with partners who deploy multiple technologies and with local technicians — such as training electricians to handle after-sales service. This creates new jobs and income opportunities.
However, it is a chicken-and-egg problem. Without deployments, you cannot justify after-sales service. Without that support, user confidence is low. Our programme, Powering Livelihoods, tries to fill this ecosystem-level gap, acting as a coordinating layer.
Over the past four and a half years, we have supported almost 32,000 livelihoods directly. Many more have been indirectly enabled.
Mature Technologies
Yes, many of these technologies have existed for seven to eight years. When they entered our programme, they were already a couple of years old. Prices have stabilised, and service issues have reduced over time.
These are commercial technologies, not lab prototypes. They have already been deployed at scale — thousands of units. Awareness is limited though, even among those who could benefit. The same is true for bankers or policymakers.
We have been trying to sensitise all stakeholders about their potential and multiple benefits — from environmental impact to job creation to reducing migration and strengthening rural economies.
Bank Linkages
To put it simply, these technologies require upfront payment for 20 to 25 years of electricity on day one. So the capital cost is higher. For example, a solar refrigerator may cost three to four times more than a standard one. Rural consumers usually cannot pay this upfront, making finance critical.
We have worked with non-banking financial companies (NBFCs), which are more agile and willing to take risks. We have enabled loans worth Rs 2 crore. Rs 1 crore has been already deployed and recovered. The non-performing asset rate has been under 3%, which is excellent.
We have also worked with peer-to-peer platforms like Rang De. Retail investors can fund a rural user’s technology purchase, and the user gets an affordable loan at 6–8%.
Additionally, we have tapped into government schemes like the Formalisation of Micro food processing Enterprises (PMFME) for micro-food processing, unlocking subsidies and interest subventions for our users.
Learnings for Scale up
We must take an ecosystem approach. Supporting only one technology or focusing on isolated solutions will not help. Scaling needs a system where every stakeholder — users, financiers, policymakers, and distribution partners — is part of the picture.
Sometimes loans are not sanctioned simply due to lack of awareness or tools. We are developing toolkits for bankers to assess applications for solar-powered machines.
We are also generating systemic evidence — what income improvements users have seen, what savings or lifestyle changes. This data helps financial institutions and policymakers. Awareness, capacity building, and evidence generation are essential for scaling.
Buy-in from Policymakers
India now has its first policy framework to support decentralised renewable energy-based livelihood solutions. MNRE released it in 2022, following our groundwork. However, what we still need is the move from policy to implementation schemes.
We are working to bring convergence between schemes like the National Rural Livelihood Mission, PMFME, and fisheries schemes. These can support clean-tech livelihoods, making them not only viable today but also resilient for tomorrow.
Gender Inclusion
We have an explicit focus on gender inclusion. Women face barriers at every step — from technology design, where equipment may not be user-friendly for them, to awareness, where social media may not reach them equally due to lower mobile access.
We work through women’s self-help groups and push for collateral-free loans, since many women lack assets in their name.
Mobility and market linkages are also harder for women. Some of our partner enterprises not only provide solar dryers, for example, but also buy back the dried products, so women do not have to find markets themselves. Nearly 50% of our 32,000 users are women.
Future Vision
I would like to see that awareness is no longer an issue. These solutions should be mainstream, no longer novel or niche. People should ask why mustard seeds from their village are being processed in cities instead of locally, now that power is no longer a constraint.
With distributed renewables, we can reimagine local economic structures — create more local loops, more value addition, and more inclusive growth rooted in rural areas, not just in theory but in widespread practice.
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