From BRAC's promise of 1,000 systems a month to over 150,000 solar home systems
A former BUET teacher and engineer returned from the US and in 2011 formally started Solaric, making solar home systems for off-grid rural homes. BRAC was the first big buyer and IFC the first investor with $1 million; the firm went on to supply more than 150,000 systems in Bangladesh.
The founder graduated from BUET in 1992, taught there briefly, then studied and worked in chip design in the United States. He returned to Bangladesh in 2007 and started a chip design company; Solaric formally began in 2011. The aim was to bring solar home systems to rural areas with no grid power. BRAC said that if they could come up with a solution it would buy almost 1,000 systems a month, which gave the first big market. Their innovation was to use 120V DC, which they say is better for backup, more efficient, uses fewer resources and is affordable. The first investor was the International Finance Corporation (IFC), with an initial $1 million. In 2015 they raised $4 million for about 25% of the equity from a foreign group. According to the 2019 article, the company had supplied over 150,000 home systems across Bangladesh, had operations in Singapore, Myanmar and Bangladesh, and exported to several countries in Asia and Africa. It later widened its range to nano grids and large rooftop solar for industry.
Lessons
- 1.A steady order commitment from a large organisation can anchor a solar business in its early years.
- 2.Designing the technical solution around the customer's problem (no grid, backup, cost) sets you apart.
- 3.As the market shifts, the product must shift too, as with moving from small home systems to large factory rooftops.
Published with the person's permission, without revealing who they are.
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