Introduction

Harish Hande, a true social entrepreneur, founded SELCO India in 1995 with a vision to provide sustainable energy solutions to underserved households and businesses. Over the years, Harish’s dedication to social entrepreneurship has earned him accolades, including the prestigious 2018 Skoll Foundation award. Today, he not only leads SELCO India but also heads the SELCO Foundation and SELCO Incubation Center, supporting start-up social entrepreneurs striving to combat poverty.

1. The Genesis of SELCO: A Social Enterprise Pioneer

Challenging Assumptions and Empowering the Underserved

Harish’s journey began with a realization during a research trip to the Dominican Republic in the early ’90s. Witnessing the transformative power of solar energy on a small scale inspired him to redirect his PHD thesis towards understanding how solar could alleviate poverty. In 1995, SELCO India emerged, challenging three key assumptions: that poor people cannot afford sustainable technologies, cannot maintain them, and that social ventures cannot be run as commercial entities.

The heart of SELCO’s mission was to empower India’s poorest, often ignored by mainstream service providers. Customized power solutions were designed for those relying on kerosene, coal, and wood for their energy needs. Harish’s groundbreaking insight came when a street vendor expressed willingness to pay Rs.15 a day for kerosene, a cost comparable to the use of solar power. This sparked the creation of a financing model based on daily micro loan repayments, making solar power affordable on a daily basis.

2. Overcoming Challenges and Dispelling Myths

Building Trust and Creating Sustainable Solutions

Starting with minimal financing, Harish faced skepticism from rural communities and banks. Living in a rural Indian village, he gained firsthand insights into the challenges faced by the underserved. Harish personally installed the first 500 lights, explaining the value proposition to various villages. To address maintenance concerns, local technicians from rural areas were employed, creating local job opportunities.

Dispelling the myth that social ventures cannot be commercially viable, SELCO became profitable, proving the sustainability of its business model. Harish emphasizes the importance of a long-term business vision that aligns with social and financial objectives. While labeled as socialist, SELCO’s profitability for the past 12 years counters stereotypes about the compatibility of social impact and commercial success.

3. The SELCO Family: A Multifaceted Approach

Building a Sustainable Ecosystem for Social Impact

SELCO has evolved into a multifaceted organization, comprising four key initiatives that work synergistically:

• SELCO BUSINESS: Continues to operate successfully since 1995, setting an example for social business models.
• SELCO FOUNDATION: A not-for-profit entity creating an ecosystem for innovative services, focusing on socially, financially, and environmentally inclusive solutions.
• SELCO INCUBATION: Supports and inspires local entrepreneurs in sustainable energy startups, addressing the unique needs of underserved communities.
• SELCO FUND: The newest addition, planning to invest in small businesses emerging from the incubation process.

4. Demonstrated Impact and Global Aspirations

Transforming Lives and Inspiring Global Change

The SELCO India business arm, with 560 employees, serves around 675,000 households and 12,000 institutions. The impact extends beyond numbers, making the poor “bankable” and enhancing social and financial well-being. SELCO Foundation and Incubation Centre contribute to customized innovations, solving unique problems for underserved communities.

Harish envisions India taking a leadership role in using renewable energy to drive global change. With renewable energy costs now competitive and SELCO’s proven model, he believes the approach can be applied globally. The success of the SELCO model, compounded by externalities like improved health through innovations like solar-powered dental chairs, positions India as a leader in addressing poverty and climate change on a global scale.

5. How to Get Involved and Stay Connected

Collaborating for Collective Impact

The SELCO family welcomes collaboration and learning from global initiatives addressing poverty and climate change. Harish encourages sharing insights into successful or unsuccessful business models to collectively tackle these pressing issues. Beyond direct involvement with SELCO’s work, contributions from diverse perspectives can enrich the collective effort towards sustainable social impact.

SELCO India stands as a testament to the transformative power of sustainable business models in addressing social needs and environmental challenges. Harish Hande’s journey exemplifies the potential of social entrepreneurship to create lasting positive change, one empowered community at a time.