Frontier Markets: Last Mile Distribution for Solar

Providing solar energy solutions to rural low-income families
2014 SEED Low Carbon Award; IKI BMU
Clean Energy
Jaipur
India

The enterprise provides solar energy products to rural low-income families by mapping the needs and demands of customers, educating customers through various marketing strategies, using a hub-and-spoke product distribution model, ensuring consumer trust through committed customer service and conducting follow ups with customers to evaluate product use, interest and future requirements. 

The solar energy lanterns, torches and home lighting systems are distributed through local entrepreneurs under the Saral Jeevan brand. FM especially focuses on after-sales services to ensure all solar solutions have lasting impacts.

Eco-Inclusive Impacts
Every solar energy product distributed by Frontier Markets promotes household health, wealth and productivity. The enterprise helps increase household savings and decrease energy expenses and provides more hours of light in the evening for livelihood or educational activities. Additionally, each product ensures a greener atmosphere and helps reduce greenhouse gas emissions.
  • Improving access to safe lighting increases work hours and household earnings.
  • Increasing income-generating opportunities for 500 saleswomen.
  • Decreasing use of traditional fuels e.g. kerosene, which reduces fire accidents and respiratory diseases.
  • Reducing heavily polluting traditional energy sources like kerosene, batteries and high energy consuming CFL bulbs.
  • Preventing 150,000 tonnes of carbon emissions from the atmosphere.

 

 

  • Increasing savings on energy costs: Households benefitting from the enterprise will save USD 300 per year.
  • Promoting local ownership of branded retailing services.
  • Increasing employment opportunities for 100 new staff by creating 15 new branch offices.

Partners

Frontier Markets provides rural low-income families with affordable solar energy lanterns, torches, and home-lighting systems using a hub-and-spoke distribution model. The specific needs of rural low-income families are integrated into the business model through after-sales services and regular product use, needs assessments. Using solar energy products allows customers to reduce their energy expenses and to reduce the use of traditional polluting fuel sources such as kerosene. 

Centre for Microfinance is a coalition of 16 microfinance institutions and non-profit organisations in Rajasthan that connects the enterprise with 400 women groups whose members are trained to be company representatives.

Princess Diya Kumari Foundation provides entrepreneurial skills training to women and sponsors solar lantern kits. The women are now members of FM’s solar product distribution service.

GVSS has a network of 400 self-help groups whose female members are currently being trained to market and sell FM’s solar solutions in local communities. FM provides them with maintenance and aftersales training.