Shining a Light on Off-Grid Communities
Little Sun joins the Business Call to Action with a pledge to bring solar light to remote areas off the electricity grid
BERLIN, December 14, 2016 /3BL Media/ – Germany-based solar energy provider Little Sun has joined the Business Call to Action (BCtA) by committing to provide clean and affordable solar lighting to 5 million people in Africa while bringing livelihood opportunities and training to at least 4,000 local micro-entrepreneur distributors until 2020.
Launched in 2008, the Business Call to Action (BCtA) aims to accelerate progress towards the Sustainable Development Goals (SDGs) by challenging companies to develop inclusive business models that engage people with less than US$8 per day in purchasing power as consumers, producers, suppliers and distributors. It is supported by several international organizations and hosted by the United Nations Development Programme (UNDP).
Today there are 1.1 billion people worldwide without access to electricity. These ‘off-grid’ communities are not able to light their homes, charge mobile phones or access other basic services. Education levels in these areas remain low since children cannot study after sunset. Working hours are limited to the daytime, which decreases incomes. Providing medical care – and delivering babies – becomes much more risky at night.
Founded in 2012, Little Sun’s mission is to bring affordable solar light to the over 1 billion people worldwide living without electricity. The company seeks to strengthen communities from the inside by creating local income opportunities through a distribution network comprised of local entrepreneurs. Its products’ price point is affordable for consumers while still allowing for profits to be made by these local distributors.
Little Sun is a social business operating with a unique global model, providing affordable energy access units in off-grid areas as well as selling lamps and solar powered phone chargers in the global north to fund the project, to share a strong symbol of renewable energy, and to create a more interconnected world.
“In remote areas without access to the electricity grid, lack of lighting is a major barrier to economic and social development, further marginalizing already struggling families,” said Paula Peleaz, BCtA Programme Manager. “Little Sun is not only providing these communities with a source of light. It is enhancing their livelihoods, furthering their education and improving their health – all with simple and affordable solar-powered lanterns”.
The company’s inclusive business strategy focuses on developing its local distributors’ businesses through training and support with marketing and sales. Little Sun is also tackling the challenge of limited logistics and retail opportunities in remote areas through strategic partnerships with local businesses, NGOs and community-based organizations.
In addition to producing solar lights, Little Sun creates targeted training materials to guide its partners in addressing customers’ needs and evolving their business strategies. Its Berlin-based team gets involved at the local level by delivering workshops on solar technology, sales and distribution planning, financing, accounting and recruitment.
While funding is a major challenge for scaling up solar solutions in rural areas, Little Sun is developing innovative flexible-payment and credit models, and forging strategic partnerships with village savings and loan associations. And since the company is able to achieve greater margins in higher-income areas, it can offer realistic payment terms, deferred financing and subsidies in lower-income communities.
Amid growing awareness of the risks of kerosene and the financial benefits of sustainable lighting, the company’s management expects demand for its solar products to expand significantly. Already active in over ten sub-Saharan African countries, Little Sun is planning to expand its operations in these countries before moving to other regions in order to ensure a strong distribution network.
“In producing and distributing our solar products, we are keeping an eye towards the Sustainable Development Goals,” said Felix Hallwachs, Little Sun’s CEO. “This requires fostering local small business opportunities and building a scalable delivery system – as well as building global awareness of the importance of clean, renewable energy.”
For further information:
Business Call to Action: Tatiana Bessarabova at tatiana.bessarabova@undp.org
Little Sun: Eva Brandt at eva@littlesun.com
Membership in the Business Call to Action does not constitute a partnership with its funding and programme partners, UNDP or any UN agency.
About the Business Call to Action (BCtA): Launched at the United Nations in 2008, the Business Call to Action (BCtA) aims to accelerate progress towards the Sustainable Development Goals (SDGs) by challenging companies to develop inclusive business models that offer the potential for both commercial success and development impact. BCtA is a unique multilateral alliance between key donor governments including the Dutch Ministry of Foreign Affairs, Swedish International Development Cooperation Agency (Sida), UK Department for International Development, US Agency for International Development, and the Ministry of Foreign Affairs of the Government of Finland, and the United Nations Development Programme — which hosts the secretariat. For more information, please visit www.businesscalltoaction.org or on Twitter at @BCtAInitiative.
About Little Sun
Little Sun is a social business and global project founded by artist Olafur Eliasson and engineer Frederik Ottesen to bring clean, reliable, affordable energy to the 1.1 billion people in the world living in off-grid areas without electricity. Purchasing Little Suns in areas of the world with electricity makes the products available in off-grid areas at reduced, locally affordable prices, where they provide a clean alternative to toxic and expensive fuel-based lighting and a steadfast and clean alternative to relying on the electrical grid. Little Sun addresses the need for energy in a sustainable way that benefits off-grid communities by working with local entrepreneurs, creating local jobs, and generating local profits. For more information: www.littlesun.com.