As the world faces growing challenges in food security, climate change, and economic inequality,
agriculture stands at a pivotal crossroads. With the global population projected to reach 10 billion by
2050, a 70% increase in food production is essential to meet demand. Simultaneously, climate change
threatens agricultural productivity, with rising temperatures, erratic rainfall, and extreme weather events leading to crop failures and food shortages. Smallholder farmers, especially in Sub-Saharan Africa and South Asia, are on the front lines of these crises, struggling to maintain their livelihoods in increasingly hostile environments.
In this context, a new generation of agri-enterprises is emerging to transform global agriculture. They
are rethinking agriculture with a commitment to creating sustainable, inclusive and profitable solutions.
They are leveraging advanced technology and innovative business models to make.
Powering Livelihoods with Productive-Use of Energy (PUE) Appliances
Central to this transformation are Productive-Use of Energy (PUE) appliances— clean-energy enabled
appliances that empower farmers and small business owners to generate new income streams. From
solar water pumps to and fridges to sewing machines and agro-processing mills, PUE appliances boost
productivity, increase incomes, and enhance quality of life. In regions where large rural populations rely on agriculture, these technologies are becoming crucial for sustaining livelihoods and building resilience against climate change.
Demand for PUE appliances is rising, particularly in agriculture, where reliable equipment for irrigation, harvesting and processing is essential. However, the adoption has been hindered by high costs, limited financing options, and inadequate after-sales support. For smallholders, who often earn less than $150 per month, the upfront investment required for these appliances can be prohibitively expensive.
Overcoming Barriers with Innovative Business Models
While the technological potential of PUE appliances is immense, making them accessible to
low-income farmers remains challenging. Recognising that high upfront costs and limited financing are
major barriers, new-age agri-enterprises are developing innovative business models to minimise entry
barriers and spread the financial burden over time.
Pay-as-you-go (Payg): Consumers pay an initial upfront cost (10-20% of the total) and subsequent
regular installments, with ownership transferred once the product is fully paid. This model is suitable for small PUE products and requires credit scores for eligibility.
Subscription model: Consumers pay a recurring fee regardless of their usage, similar to Payg models,
but ownership is not necessarily transferred.
Pay-per-use: Consumers only pay for services based on their usage, eliminating the upfront cost
barrier for the end user. Usage charges are lower than alternatives and include maintenance and
operation costs.
Rental: Consumers rent PUE appliances or assets on demand — an approach that is typically used for
high-cost farming machinery. This model offers flexibility, but may become more expensive than
ownership over time.
Cooperative model: Consumers form a group to finance the purchase of PUE appliances through
upfront payment and/or bank loans. The group owns the appliances and charges usage fees to
non-group members for their use. These usage fees cover maintenance costs and provide additional
income to the group.
Pay-by-produce: Consumers pay for PUE appliances with their harvested produce, aligning payments
with the crop cycle. The implementer sells a portion of the produce to cover costs, while any surplus is
returned to the consumer.
Besides improving access to clean-energy technology these business models are creating ecosystems
that support the long-term sustainability and scalability of agricultural innovations. New-age
agripreneurs are partnering with local governments, financial institutions, and international donors to
secure funding and infrastructure needed for large-scale implementation of these models. Impact
investors increasingly view these models as opportunities to achieve significant social and
environmental returns, further driving their expansion.
A Focus on Inclusivity and Sustainability
A hallmark of these emerging agri-enterprises is their focus on inclusivity and sustainability. While
traditional agricultural practices often exclude marginalised groups, emerging enterprises are working to
ensure that women, minority communities, and the poorest farmers are not left behind. With climate
change posing an existential threat to agriculture, the shift toward renewable energy-powered PUE
appliances is a survival strategy. By reducing reliance on fossil fuels and lowering carbon emissions,
these technologies help build more resilient agricultural systems that can withstand the impacts of
climate change.
Digitalisation
Besides solar infrastructure, agribusinesses are developing low-cost, user-friendly digital platforms
tailored for small-scale farmers to help them optimise inputs, reduce waste and boost yields. These
platforms provide access to precise weather forecasts, information on modern techniques, market
information, and farm management advice, empowering marginalised farmers to boost productivity and
strengthen their livelihoods.
The Road Ahead
As we look to the future, more and more enterprises are demonstrating that sustainable, inclusive
growth is possible. By overcoming barriers to PUE adoption and creating innovative, farmer-centric
solutions, they are transforming agriculture into a driver of prosperity and resilience in some of the
world’s most vulnerable regions. Their work is a testament to the power of innovation and collaboration
in building a more sustainable and equitable world.
About Ankur Singh and Argha Ghose
Ankur Singh (Senior Manager – Oorja Development Solutions India Private Limited)
Ankur is a management professional who has been working at the intersection of livelihood, gender and
poverty alleviation for over six years. Experienced in on-ground implementation and program management
of various government and non-government projects, Ankur has also led strategy and business
development with his past organisations.
Argha Ghose (Communications Associate – Oorja Development Solutions India Private Limited)
Argha is a writer and communicator with four years of experience in the higher education and social impact domains. At Oorja, he manages internal and external communications, handles social media engagements, writes fundraising applications and assists the HR in reinforcing organisational values and culture.
