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http://www.appropedia.org/Microfinance

Solar and Microfinance

P. Sharath Chandra Rao, Jeffrey B. Miller, Young Doo Wang, John B. Byrne,Energy-microfinance intervention for below poverty line households in India, Energy Policy, Volume 37, Issue 5, May 2009, Pages 1694-1712, ISSN 0301-4215, DOI: 10.1016/j.enpol.2008.12.039.

Abstract More than 72% of India's population resides in rural India1 and it also has a high concentration of people living under abject poverty. Of the total rural population 27.1–28.3% lives below the poverty line2 (BPL). A lack of energy-finance options is hampering the “quality of life” of the BPL community. The members of this disadvantaged household which forms 27.1% and 23.6% of the India's rural and urban population3 has no ready access to mainstream finance or know—how of sustainable energy products nor do they have access to energy service providing agency. This lack of energy-finance options has provided the marginalized population little means to break the conventional energy paradigm and the corresponding poverty cycle.

Considering the afore-mentioned problem we propose an energy-microfinance intervention or a model that encompasses two independent entities. One has an energy expertise and the other possesses finance management skills. Alternately, we also propose a special purpose entity that comprises of these two entities. This entity fosters different institutional, technical and financial engineering approaches to the provision of energy, finance and infrastructure services necessary for poverty alleviation.[1]

Microfinance models: Self help model, Grameen model. Includes energy-microfinance framework and case studies

[No articles were found that cite this article.]

Basu and Srivastava, 2005 Basu, P., Srivastava, P., 2005. Scaling-up microfinance for India's rural poor. World Bank Policy Research Working Paper 3646, The World Bank, Washington.

Nova-Hildesley, 2006 Nova-Hildesley, J., 2006. From idea to impact: Funding invention for sustainability., Innovations, 31–42.

A growing number of non profit and for-profit organizations are implementing a new approach to international development jointly emphasizing entrepreneurship and technology.

Srinivasan, Sunderasan, "Microfinance for Renewable Energy: Financing the 'Former Poor'.", World Review of Entrepreneurship Manag and Sustainable Development 3.1 (2007):79-89.[2]

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Abstract: Microbanking facilities have helped large numbers of developing country nationals by supporting the establishment and growth of microenterprises. And yet, the microfinance movement has grown on the back of passive replication and needs to be revitalised with new product offerings and innovative service delivery. Renewable Energy systems viz., solar home systems, biogas digesters, etc., serve to improve indoor air quality, provide superior light and extend working and study hours. Such applications are not inherently income generating and returns on such investments accrue from cost avoidance, but should qualify for microfunding, as such 'quality of life' investments, reflect borrower maturity and simultaneously contribute to MFI sustainability.

"Solar power takes hold across rural Sri Lanka.", Appropriate Technology 33.3 (2006):61.

Abstract:Sarvodaya Economic Enterprise Development Services (SEEDS) Ltd, who were runners-up for the Light Award, run a hugely successful micro credit scheme to enable Sri Lanka's rural poor to benefit from solar electricity. To ensure the spread of the technology SEEDS works with local solar companies, identifying potential customers and then offering and administering loans. With its micro-credit scheme, customers typically make a down payment of 15% or 20%, and pay the balance over two to four years at an interest rate of approximately 10%. The micro-hydro schemes are financed by a mix of 'sweat equity' on the part of the villagers who benefit, along with a SEEDS loan and a government grant. SEEDS have carried out surveys which suggest a reduction of around 300 litres of kerosene per household per year. This is equivalent to about 0.75 tonnes of carbon dioxide emissions for each system, or 38 thousand tonnes per year for the whole program.[3]

Gallardo, Joselito, Leasing to Support Small Businesses and Microenterprises,The World Bank, Policy Research Working Paper Series: 1857, (1999)

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Abstract: December 1997 The Bank should maximize opportunities to expand the use of leasing as an approach to financial intermediation in Bank projects to promote the development of small businesses and microenterprises. In most developing countries, capital markets are relatively undeveloped and banks are often unable or unwilling to undertake term lending. And banks prefer to lend to larger, established businesses with well-developed balance sheets and credit histories. Operations in microenterprises and small businesses are cash-flow-oriented but rarely have organized historical financial records or the assets needed for collateral for conventional bank financing. Gallardo explores the potential of leasing as an option to expand small businesses' access to medium-term financing for capital equipment and new technology. In a lease-financing contract, the lessor-financier retains ownership of the asset, lease payments can be tailored to fit the cash-flow generation patterns of the lessee-borrower's business, and the security deposit is smaller than the equity stake required in conventional bank financing. Different types of small businesses require different financial services. It would be worthwhile to encourage development of a range of institutions using special methods to service particular market niches. Most small businesses that generate extra income for a household or employ nonfamily members need simple access to financing to augment their working capital needs. Microfinance appropriate to their needs will feature short cycles of repayment and borrowing. Other small businesses require medium-term financing to acquire the tools and equipment needed to support production growth and expansion. For these businesses, leasing is an attractive new financing option. Gallardo examines and compares the Bank's experience: Lease financing was used to promote the development of small businesses in Pakistan, as part of a microenterprise development loan project. For a Bank-supported alternative-energy project in Indonesia, a variant of lease financing-the hire-purchase contract-is being used in marketing and distribution by private distributors of photovoltaic solar home systems. Lease financing was used by Grameen Trust in Bangladesh to finance the purchase of small tools and equipment and in other countries to promote the growth of alternative energy systems. This paper-a product of the Development Research Group-is part of a larger effort in the group to identify appropriate policies for environmental regulation in developing countries. The study was funded by the Bank's Research Support Budget under the research project "The Economics of Industrial Pollution Control in Developing Countries" (RPO 680-20).

E Martinot, R Ramankutty, F Rittner, The GEF Solar PV Portfolio:Emerging Experience and Lessons, Monitoring and Evaluation Working Paper 2, August 2000

A review of projects financed by microfinance.

Cited by 20: [4]

Microfinance and renewable Energy Investing in a sustainable future,I. Issue 2006

WISIONS is an initiative of the Wuppertal Institute for Climate, Environment and Energy, carried out with the support of the Swiss-based foundation Pro-Evolution, to foster practical and sustainable energy projects.

Studies carried out by the United Nations (UN) show that of the 4 billion people who live on less than 1,400 USD a year, only a fraction have access to basic financial services. Microfinance is one promising way to bridge this gap. It is not development aid but self-help assistance and microfinance institutions benefit from providing micro credits.

Overview of projects, obstacles, financial issues and replicability

Huang Liming, Financing rural renewable energy: A comparison between China and India, Renewable and Sustainable Energy Reviews, Volume 13, Issue 5, June 2009, Pages 1096-1103

Abstract: This paper analyses the current status of rural renewable energy (RRE) in China and India, develops and employs an analysis framework to study the environment, channels, instruments and innovative mechanisms of financing rural renewable energy in China and India, and makes a primary comparison.

The financing for rural renewable energy in China and India 3.1. Financing environment for rural renewable energy 3.1.1. China's financing environment 3.1.2. India's financing environment 3.2. Financing channels for rural renewable energy 3.2.1. Government finance 3.2.2. International funding 3.2.3. Commercial banks and non-bank financing institutions 3.2.4. Public stock markets 3.2.5. Private sector finance 3.3. Financing instruments for rural renewable energy 3.3.1. Grants 3.3.2. Renewable energy service companies (RESCOs) 3.3.3. Low-interest and long-term loans 3.3.4. Joint ventures 3.3.5. Asset financing 3.3.6. Venture capital/private equity 3.3.7. Subsidies 3.3.8. Import duty reduction 3.3.9. Reduction in value-added tax 3.4. Innovative financing mechanisms for rural renewable energy

Limits of microcredit - a paper by Jean-Michel Servet

microcredit is an activity that must consist in lending to the poor for a productive investment that finds solvent openings, with a return higher than the loan cost, for some beneficiaries who have managerial and technical skills.

But a calling into question of the so-called "miracle" of microfinance, and a call for a wider variety of means used. I would like to add also a complicated but exciting reflection on the proper balance between sustainability of the model and the taking into account of some "social” efficiency criteria.

Microfinance organizations

GreenMicrofinance Center

GreenMicrofinance Center (GMfC) is a non-profit organization. Our mission is to address climate change and environmental justice by providing education and sharing knowledge on 'microfinance and climate change' and 'clean energy for the poor'. The Center offerings include our document library, blog, and university on-line forum.

Microplace

On the impact of microplace: [5]

KIVA

On Kiva: [6]

Arc Finance

Kadra09 19:37, 23 June 2009 (UTC)