Project Dates
Implementation Start: March 2009
Project Details
This project concept involves providing solar based LED lighting to hawkers in Tarikere. The project will be done along with Energy Elevations, which will not only provide the technology, but also monitor the project till its completion.
Energy Elevations identified the market and did the initial survey of the market. They found that the hawkers were more willing to buy the lighting systems rather than hire them for rent. Therefore, the project has been designed for purchase-on-installment basis for a period of 6 months.
Tarikere market has more than 60 hawkers. Most of them use kerosene lanterns, while others are using batteries attached to CFL/tubelights and emergency lanterns. However, due to lack of knowledge on battery and lighting maintenance, they are facing a lot of problems with their lights.
The entrepreneur identified as distributor for Energy Elevations for Chikmagalur district will be in charge of the repayments. The payments will be collected daily from the hawkers. S3IDF will receive the payments on a weekly basis. Energy Elevations will be the technology supplier as well as monitoring agency for the project. With regards to the lighting, the warranty terms are as follows:
1) Solar Module : 5 years
2)
3) Light and electronics: 12 months
The solar panels will be initially installed in a centralized place so as to ensure proper repayments from the hawkers. The hawkers will charge their batteries once in a week (as a higher capacity battery is being used for low watt LED. This will also ensure higher battery life). The panels will be transferred to the hawkers once the repayments have been done. With 30 hawkers ready to buy the systems, the project has been designed for 30 systems. However, the project will be expanded once demands for the systems increase.
Banks in Tarikere and nearby areas were approached for the financing of the project. However, most of the banks have communicated that presently loans have been suspended due to the economic crisis.
Note: New Sakthi batteries lying with S3IDF will be used for the project. The cost of the batteries has been calculated after taking one year depreciation value into account.
Project Financials
http://spreadsheets.google.com/pub?key=p
Project Size Details
The project will start with 30 systems, expanding once the demand for the lights increase.
Project Impact Details
The project will benefit the entrepreneur, who along with being a distributor for Energy Elevations, will have an additional source of income through this project. Additionally, the hawkers will also benefit from access to convenient and clean lighting.
Estimated Pre-investment Costs
Total Costs- Rs. 4340
S3IDF costs
Personnel Costs – Rs. 3340
Other costs - Rs. 1000
Total S3IDF costs – Rs. 4340
Returns for S3IDF Revolving Fund
12% average annual returns
Project Indicators
Investment Indicators:
Investment size – Rs. 138750
Revolving fund – Rs. 138750
RF to investment size – 100%
Cost Indicators
Total pre investment cost – Rs. 4340
Pre investment cost/Investment Ratio – 3%
Impact indicators
Number of direct beneficiaries – 30 (at the start of the project)
Investment size/no. of beneficiaries – Rs. 4625
Project Risks
Project owner/operator risk:
The entrepreneur has been picked up by Energy Elevations as their Distributor after a lot of deliberations. Moreover, the entrepreneur has been involved in solar systems in his previous employment. However, there is risk involved since the entrepreneur is starting his own business for the first time. But constant monitoring from Energy Elevations should mitigate the risks involved.
Market risk:
The entrepreneur has already demonstrated the lights to the hawkers and also installed one system in one of the shops. 30 ready customers are waiting to buy the systems. Moreover, nearby areas such as Lingadahalli and Bhadravati also have a good population of hawkers. Therefore, the markets risks are less.
Technology risk:
There is no technology risk as Sakthi batteries and Innova LED lights are being used in the project. However, Energy Elevations as a technology supplier and project partner will be tested for the first time.
Portfolio risk:
There is no portfolio risk.
There is no mission risk.
Partners
Energy Elevations, Distributor/entrepreneur.
