Solar lanterns are slowly moving from being a new form of technology to a necessity in many parts of India. In an environment where the demand for these products is on the rise, Electronics Bazaar takes a look at how the market is shaping up
By Samonway Duttagupta
Understanding the threats posed to the environment due to man’s indiscriminate use of fossil fuels, the world is slowly turning to clean energy such as solar power. India is also showing a healthy progress in this technology with some ambitious targets. These days, solar lanterns are considered to be a highly efficient form of lighting, especially for those who reside in places where grid electricity hasn’t reached. A lot of non-government organisations (NGOs) and not-for-profit companies like Pollinate Energy are distributing these solar lanterns at a subsidised price.
The use of LED lighting in solar lanterns has pushed up demand even further. This has led to a number of companies manufacturing these lanterns for mass consumption. The revolution has been such that even small and medium scale companies and traders have now started making solar lanterns and selling them. These solar lanterns are made by integrating a lot of materials including solar panels, LED components and many electronic components. Hence, this trend has pushed up the demand for these components in the market.
Type of solar lanterns in maximum demand
LED solar lanterns
Price Range
₹ 400 to ₹ 1800, Maximum demand for lanterns priced at– around ₹1000
Power range of solar lanterns manufactured in India
Between 60 lumens to 500 lumens
Electronic components in maximum demand
- Lithium batteries, especially LiFePo4 batteries
- LED components like chip-on-boards (COB) and the right colour temperature lights, among others
- SMD type electronic components and assembling equipment
Market size of solar lanterns (number of units produced)
3.5 million units by end of 2015, of which:
- 2 million units will be made by large companies like Tata Power Solar, Vikram Solar, Philips and others serving multiple geographies
- 1.5 million units will be supplied by the unstructured market consisting of a large number of small and medium scale companies like Vikram Solar,
Aditya Solar Energy Pvt Ltd, AlphaLoop Solar LLP and Sunlight Solar, among other manufacturers and traders.
The reasons for this are the growing demand for energy efficient lighting and the significantly low price of these lanterns for the end consumers.
Facts courtesy: AlphaLoop Solar LLP
What is required for the growth of the electronic components industry?
- Local manufacturing of solar panels, LED components like chip-on-boards, solar panel charging devices, lithium batteries, surface-mount device (SMD) electronic components and more
- An open market with subsidies provided to the complete value chain along with a reduction in the number of documents and paper work required
- Financial support from state and central governments.
Industry speak
“There are very few options for local sourcing of components such as high-quality lithium batteries and LED components. The ecosystem does not exist. Procuring them from outside India in bulk means that we need to buy and stock them. This blocks our capital that could have been more optimally deployed for marketing and business development operations
—Tarun Khurana, partner and head – sales and marketing, AlphaLoop Solar LLP
“For manufacturing solar lanterns, what we need the most are the SMD type electronic components and assembling equipment, which have a compact design and are cost effective in the production process
—G.K. Raju, managing director, Aditya Solar Energy Pvt Ltd
Challenges faced
- No local manufacturing facilities or Indian ecosystem in place for lithium batteries and LED components
- Procuring materials from foreign countries in bulk blocks the manufacturing companies’ capital that could be used for other important purposes
