Type: Blended
PHASE: Pilot
CATEGORY: Energy
Project Light
Asia

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2 out of 5 Indonesians do not have access to light. We adopt a social enterprise model and train rural women to be solar lamp entrepreneurs. This empowers women and end energy poverty.

Standings & Awards

1313 out of 1313 in Asia
143 out of 143 in Energy
573 out of 573 in Pilot
1066 out of 1066 in Blended
4003 out of 4003 Overall
We end energy poverty and create economic and personal growth by empowering rural women to be entrepreneurs.

“If we stop thinking of the poor as victims or as a burden and start recognizing them as resilient and creative entrepreneurs and value conscious consumers, a whole new world of opportunity will open up.”              -C.K. Prahalad, The Fortune at the Bottom of the Pyramid

I once asked a mother what her little daughter does at night. She replied, “Nothing. She can’t watch TV because the village generator is spoilt. Sometimes, she does her homework, but not for too long, because the kerosene lamp smells and hurt her eyes. And kerosene is expensive.” When night falls, entire villages plunge into darkness and virtually every activity stops. This is a global problem: 2 out of 5 Indonesians, and 1 out 4 people in the planet, do not have access to light. How do we interrupt their darkness?

The solution is not to give away the technology but to structure the process such that it produces long term benefits for the community long after we leave. The principle underlying this approach is the belief in the power of the rural poor to effect changes themselves, if they are given the tools, guidance and education to do so.As such, our approach is to catalyze the potential of  women, by training them as solar lamp entrepreneurs. This has several advantages. First, the women we select would have used the solar lamps themselves. They are therefore powerful advocates of the product. Second, they earn a good income through the sales of the lamps. This system therefore transforms their free time into something more economically productive, without compromising on their family responsibilities. Third, by selling higher value products, it compels the women to raise their skill set and service standards. Lastly, it creates a powerful distribution channel by women for women. This strengthens inter-island trade networks. Long after we leave, the networks can be tapped to sell other products.

We focus on women to achieve a multiplier effect. According to USAID, aid programs that focus on women tend to benefit the family. The extra income generated by women will be invested back into the household. This is particularly true in the Riau Islands. Men work and women hold and manage the household finances and make key purchasing decisions. A solar lamp is a key household expenditure.Thus,  a focus on women also mean we are targeting the relevant market segment.

FIVE PROJECT QUESTIONS Required (60 - 90 minutes)

1. What is your innovation? 
Our innovation is based on how the service is marketed and how revenue is generated. First, social innovation tends to place an emphasis on breadth. We focus on depth first, with the belief that ‘breadth’ will follow. This involves adopting a hub strategy. Second, we empower rural women to start a solar lamp business. Third, we adopt a micro-consignment model,not micro-credit. Our entrepreneurs pay us only after sales are made. This overcomes the unavailability of financing in rural areas.
2. Who gains the most? 
The solar lamp benefits households who previously had no access to light. This ends their energy poverty, allowing them some measure of freedom at night. The rural women entrepreneurs we trained are given meaningful job opportunities. The training they received help build their capacity as small time businesspeople. The skills they learn can then be used to sell other products in future. Each woman entrepreneur can earn a side income of US$20 to US$30 per month through the sales of the lamps.
3. Who pays? 
The women customers who buy from our rural women entrepreneurs save about US$64 per year as they no longer use kerosene fuel. Every customer sees an immediate improvement in their lives by just paying US$1 to US$2 /week installment for the solar lamps. As we adopt a micro-consignment model, our women entrepreneurs pay us only after sales are made. They pay a deposit of US$1 for each lamp taken out from the inventory.
4. What is your success? 
Project Light has created jobs for 8 rural women. As of March 2012, the women entrepreneurs have sold more than 450 lamps across more than 20 islands, benefiting about 1700 people. They are targeted to sell a conservative estimate of 40 lamps per month.By Dec 2013, we will train 10 more women in 2 more hub villages, reaching out to 1000 households and 4000 people. By Dec 2014, we will train 30 women entrepreneurs who will reach out to 2500 households and benefit 10,000 people.

Badges & Awards

Semifinalist
Semi-finalist Project 2012
Project Participant DSIC 2012
2012 DSIC Project Participant

Mentors

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Elham Jalilzadeh
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