India's journey toward renewable energy has made significant strides, positioning the country as a leader in the global push for clean energy. As of the latest reports, India has achieved an impressive milestone of over 150 GW of renewable energy capacity, making a notable impact on rural development and sustainability efforts across the nation. This capacity includes a diverse mix of solar, wind, biomass, and small hydro projects, contributing to India's ambitious target of achieving 450 GW by 2030.
The introduction of renewable energy initiatives extends benefits beyond job creation. Solar-power projects have enabled better access to clean water and reliable electricity, crucial elements for improving the quality of life and economic opportunities in rural areas. Access to reliable electricity means that small businesses can operate longer, children have more hours for study, and healthcare facilities can provide better services.
A notable example is the deployment of solar-powered irrigation pumps, which has revolutionised agriculture in several rural parts of India. Farmers, who previously relied on erratic and costly diesel pumps, now enjoy a consistent water supply, leading to increased agricultural productivity and income. The International Institute for Sustainable Development (IISD) reports that solar irrigation systems not only reduce the carbon footprint but also enhance agricultural yields by 30%, directly impacting farmers' livelihoods.
Rang De Social Investors have been instrumental in backing Solar projects in 3 major districts of Bihar namely - Muzzaffarpur, Samastipur and Vaishali. With Rang De’s Impact Partner - AKRSP (I), farmers have set up solar irrigation pumps that have significantly brought down the cost of irrigation and increased monthly income of farmers substantially. With timely loans at low interest rates Rang De Social investors have enabled 19 women Investees to set up solar irrigation systems.
In North East, Mithun Rural Development Foundation (MRDF) - Rang De Impact Partner aims to implement a sustainable and holistic model of low-carbon rural economic development through solar mini-grids.The Mon District in Nagaland, the home of the Konyak tribe, has been selected by the MRDF as the area to initiate this development mission.
The mini-grid will augment the existing power grid electricity and ensure 24×7 power supply to the village. The availability of reliable power is expected to spur multiple micro-enterprises based on agri-processing and non-farm enterprises such as metal fabrication, wood work and handicrafts.
The solar mini-grid will also power the health centre, schools and public infrastructure such as water supply and streetlights.The use of sustainable energy resources increases the margin of income significantly. A fleet of auto rickshaw drivers are switching from internal combustion engines to electric kits backed by our Impact Partner - RACEnergy. The switch was made possible by Rang De Social investors who invested in loans raised for the purchase of electric kits. 29 Auto drivers were able to shift to clean energy and saw a 2X income boost.
The contrast with traditional energy sources is stark. Traditional energy often comes with higher costs, both financial and environmental, and fails to offer the same level of job creation or socio-economic benefits. Coal-fired power plants, for instance, have been linked to health issues in nearby communities and provide fewer long-term employment opportunities compared to renewable projects.
While the progress is encouraging, the journey towards a fully renewable-powered rural India is fraught with challenges. These include the need for more robust policy support, greater financial investment, and the development of local skill sets to manage and sustain renewable energy projects.