A number you likely know: 400 million. That’s how many people live without electricity in India. And not coincidentally, most of these people are poorest of the poor and live in rural villages or hamlets. The presence of such an enormous population eager for something better has given rise to new commercial products and services such as solar lanterns, solar home systems, and, the subject of this blog, micro-grids.

How will solar energy be made to work in India? As I discussed in my previous article there are three key challenges. One, how will the country pay for solar energy in a situation where there is no money to pay for even the crashed costs of installation. Two, what is the best model for the distribution and use of this relatively expensive energy in a country where millions still live in the dark? Three, how should India combine the twin objectives of supply of clean energy and creation of domestic manufacturing capacities?