Ground Report: Why is Quality Solar Minigrid Energy Limited to Few Bihar Entrepreneurs?

Patna, Bihar— Renu Devi's hardware store, situated in the bustling Lalganj area, approximately 45 km from the state capital Patna, stands as a shining example of a thriving business powered by solar mini-grid energy. These innovative solar mini-grid units, designed by the American-based Husk Power System, have been strategically installed at the entrance of Jagannath Basant village in the Lalganj region.

Their primary purpose is to ensure a consistent and uninterrupted supply of electricity to over a dozen shops in the bustling nearby market, and Renu Devi's shop is one of the fortunate beneficiaries of this cutting-edge technology.

Renu Devi, aged 33, and her husband, Ajay Kumar, aged 40, jointly manage the two-story establishment known as 'Maa Durga Ply Aluminum Glass and Hardware Store.' This thriving business, which has been operational since 2013, has been benefiting from solar electricity for the past three years. Renu explained that their shop specializes in the construction of doors, buildings, and sliders, making it a hub for various construction-related needs in the area.

Renu enthusiastically shared, "Our establishment is equipped with lights, an inverter, and solar electricity. Even during unexpected power outages, our operations continue seamlessly. We have a dedicated team of laborers and mechanics, and thanks to solar power, none of them face any disruptions."

Renu Devi made the decision to connect to Husk Power System's solar mini-grid three years ago. When asked about the difference between Husk's solar electricity and the regular electricity supplied by the Bihar government, she candidly expressed, "While Husk's electricity may appear slightly more expensive, it proves to be a lifeline when conventional power fails. The ability to keep our operations running smoothly is priceless."

Renu further elaborated, "Almost everything regarding Husk is excellent, but I must admit that its recharging cost is a tad on the higher side." She explained, "We recharge it with fifteen and a half hundred rupees every month, and while sometimes it suffices for the entire month, there are instances when it falls short." Renu Devi shared that in a typical month, they end up paying around Rs 1552 (approximately 18.68U$) for utilizing solar electricity.

Meanwhile, the owner of another establishment, 'Shamim for Wheeler Painter,' located in Vaishali Market, Lalganj, expressed their viewpoint to The Mooknayak, saying, "Our shop closes in the evening, so there doesn't seem to be much point in adopting this solution."

Local residents pointed out that during storms in Bihar, power outages lasting two to three days are common occurrences. It's during these challenging times that entrepreneurs who rely on electricity turn to Husk Power System's solar energy as a reliable alternative, ensuring that their businesses do not come to a standstill.

In the bustling Lalganj market, a new ready-made brand clothing store named Killer MR Fashion opened its doors in June 2023. The shop owner has chosen to harness solar energy from Husk Power System to meet their electricity needs. Roshan (21), who manages the main counter of the shop, explained their usage pattern, stating that they rely on Husk's solar lights primarily when there are customers in the shop, and the regular lights face interruptions.

Roshan revealed, "We got inspired to explore solar energy after witnessing some neighboring shops adopting Husk solar light connections. Their positive experiences encouraged us to follow suit."

While acquiring the solar connection proved to be relatively straightforward, Roshan highlighted the associated costs, stating, "Husk's solar power comes at a cost more than double that of regular electricity. Our daily electricity bill amounts to Rs 300 (approximately 3.61U$). However, the solar bill can escalate to Rs 1500-2000INR (around 18.05-24.07U$) a day when we use the air conditioning system in the shop." This cost comparison underscores the financial considerations that businesses like Killer MR Fashion weigh when deciding on their energy source.

Roshan further clarified their approach, explaining, "We allocate a monthly budget of Rs 1500 or 2000INR (18.05-24.07U$) for recharging Husk's solar lights, but we don't use them continuously. Instead, we reserve them for emergencies when regular electricity becomes unavailable. Using solar electricity on a daily basis would deplete it rapidly, which is why we primarily rely on conventional electricity. We resort to Husk's solar lights only when there are no other viable options."

He went on to provide a cost comparison, saying, "To put it into perspective, if one were to use Husk Solar continuously for a month, the monthly bill would skyrocket to Rs 20,000 to 25,000 (approximately 240.66-300.82U$). In contrast, a standard electricity bill typically ranges from Rs 8,000 to 10,000 (around 96.26-120.33U$)." Roshan emphasized that their shop has a substantial electricity consumption of 10 kilowatts, underscoring the considerable financial implications of opting for Husk's solar energy as the primary power source.

Rakesh Kumar (28) has been operating his shop, 'Maa Parvati Aluminum House,' in the market for nearly two years. While he is aware of Husk's solar energy offering, he has not yet opted for a solar energy connection. Rakesh Kumar shared his perspective, saying, "For shopkeepers like us who have adopted Husk's solar energy connection, their monthly bill amounts to Rs 2200 (approximately 26.47U$). In contrast, with a regular electricity connection, we can manage on just Rs 500 to 600 (around 6.02 – 7.22U$) per month."

Rakesh Kumar acknowledged the persistent electricity issues in Bihar but cited the substantial cost of Husk's solar power connection as a barrier. He explained, "If the cost of electricity from Husk's solar energy were more affordable, say in the range of Rs 700-800 (approximately 8.42-9.63U$), it would become feasible for us. However, the current rate of Rs 2200 (26.47U$) is beyond our budget." Rakesh expressed his hope that if the rates for Husk Solar Energy were reduced in the future, he would consider obtaining the connection. Currently, the amount required for Husk Power's solar energy in a single month is equivalent to what he can pay for four months' worth of regular electricity.

Rakesh also drew a comparison with a nearby shopkeeper who has a Husk Solar Energy connection, noting that this shop only uses one bulb, resulting in a monthly bill of Rs 350 (around 4.21U$). This serves as a vivid illustration of the varying costs associated with Husk's solar energy, depending on usage patterns and needs.

Husk Power has successfully deployed approximately 80 units of solar power mini-grid plants across Bihar. Their goal is to provide uninterrupted electricity to small and medium-sized industries situated in rural areas and near villages. While Husk Power System stands as the sole company in Bihar dedicated to this innovative direction, it still encounters certain challenges among entrepreneurs. Consumers generally perceive this service to be marginally more expensive than conventional electricity options.

Mahendra Kumar Mishra, a retailer and wholesaler of Amul products such as milk, curd, butter, and buttermilk in the market, relies heavily on electricity to keep his products safe in refrigeration. Mahendra, a resident of Purkhauli village, has been running a successful shop in Lalganj. In June 2022, he became a consumer of solar energy from Husk Power System, opting for a Husk's solar energy connection.

When discussing the distinction between regular electricity and Husk's solar energy, Mishra noted, "There isn't much difference between the two, but Husk's service is slightly superior, and that's why we prefer it. Husk's electricity consistently remains available, and if any issues arise, Husk's team is readily available to resolve them."

Mahendra currently pays Rs 700 (approximately 8.42U$) per month for electricity from Husk's solar power.

Sunil Kumar (29), the area service engineer of Husk Power System's solar mini-grid unit installed near Jagannath Basant village, from where power is supplied to many entrepreneurs in the Lalganj market, explained the technology behind it. He mentioned, "We have installed a 30-kilowatt solar system here. We feed DC to the inverter, which then converts it to AC, supplying power to the market according to demand. Any excess load charges the battery, maintaining its storage. This ensures that during adverse weather conditions or peak load times, the customer continues to receive power from both the battery and solar."

Sunil added, "We have established our own AC line, poles, wires, and cables to connect to the service customer's shop, all provided to the customer without any additional charges. Customers only pay for the power they consume."

Sunil Kumar emphasized the convenience for customers, saying, "Customers can view and pay their bills for Husk's solar energy through a mobile application. Our clientele is diverse, including households, retail businesses, and larger establishments such as brick factories, building shops, cake shops, motorcycle showrooms, and banks. We haven't yet extended electricity connections to farmers for agricultural use."

He continued, "Our electricity primarily serves those who lack access to regular electricity during crucial times. At such moments, our electricity becomes a lifeline, available 24/7. As soon as the Discom's power goes out, customers switch to our power source. We're the only ones capable of providing the continuous, uninterrupted power supply that customers need."

Sunil shared that more than 70 units of Husk Power System's solar mini-grid are operational across Bihar, with work ongoing for additional units. Most of these units feature 30-kilowatt solar systems. Each unit generates approximately Rs 1 lakh in revenue per month.

Bhushan Kumar (27), a resident of Lalganj, works as a technician in the same Husk Power System. Bhushan Kumar's role involves maintaining and servicing the grid, ensuring the electricity delivered to customers in the market is reliable. For this work, Bhushan receives a monthly salary of Rs 10,500 (around 126.35U$).

Bhushan shared insights into the team required to run a solar plant unit, saying, "It takes about five individuals to operate a solar plant unit, including a Technician, Area Sales Manager, Guard, Sales Secretary, and Area Service Engineer. Currently, all the employees here are male, with no female staff members."

Rizul Chaudhary (36), the marketing director of Husk Power System, explained the company's efforts in installing solar energy units across India, with 160 units deployed in Uttar Pradesh and Bihar. Approximately 70 of these units are situated in Bihar alone.

When asked about the difference between electricity obtained from the state government's thermal energy and Husk Power System's solar mini-grid, Rizul Chaudhary responded, "Normal electricity connections often come from great distances to villages and towns, resulting in frequent power outages and disruptions. The solution is the solar mini-grid, which is installed within the community, reducing the distance of electricity connection. This enables us to provide uninterrupted electricity continuously, thanks to our advanced technology."

He continued, "We have the capability to analyze demand thoroughly, understanding where and how much electricity is needed. We can track usage details every hour, ensuring our customers receive a consistent and uninterrupted power supply. This also reduces the risk of electrical equipment damage, offering our consumers high-quality energy."

Saugata Datta, the director of Husk Power System India, highlighted the positive impact of solar mini-grid energy on micro, small, and medium-sized enterprises (MSMEs), especially among small entrepreneurs in rural areas. This reliable and uninterrupted energy source is gaining popularity, providing a substantial boost to rural businesses.

Datta further explained the purpose of Husk's solar minigrid energy, emphasizing that by delivering clean and constant electricity to rural economies, Husk aims to benefit millions of businesses and families while simultaneously reducing carbon dioxide emissions equivalent to 700 million gallons produced by diesel generators.