Solar power 539
Microcredit helps fund solar power
Most homes in rural Sri Lanka
are not connected to the
national electric power system.
But as in many tropical
countries, the island of Sri
Lanka has a lot of sunshine.
In 1991, an organization called
SELF (Solar Electric Light
Fund) came to Sri Lanka to
help people use their sunshine
to make electricity.
Because they could not give
away solar power systems
for free, SELF came up with
a way to help people pay for their own systems. Together with a Sri Lankan
non-profit organization, they formed a “solar cooperative.” The cooperative
set up a microcredit fund. Cooperative members paid a small down payment
to have a solar system set up, and made small payments to the fund every
month for up to 8 years. As the fund grew, more families were able to use it
to pay for their own solar systems. After 5 years, the first 48 families had
repaid enough into the microcredit fund to allow 25 more families to buy
solar systems.
Building on this success, SELF began working with Sarvodaya, the largest
NGO in Sri Lanka, with over 3 million members. SELF and Sarvodaya
developed a “Solar Seed” program, which introduced solar electricity to over
100 villages. The program installed demonstration solar systems in community
centers, schools, and Buddhist temples. SELF then organized a microcredit fund
to help Sarvodaya members buy home solar systems. The program started with
300 households. A few years later, it was so successful that Sarvodaya began
planning for a “million-home” solar program.
Thousands of homes in rural Sri Lanka now have solar electricity. Using the
microcredit system, thousands more will soon have solar electricity. If they
continue working this way, Sri Lanka may one day be the world’s first nation
to run entirely on sunlight.
A Community Guide to Environmental Health 2012