Farmers play a vital role in India. The country has nearly 160 million farmers, yet 80% are small and marginalized. Compounded with stagnant income and rising inflation and rent prices, farmers relying on landowners are stuck in a repeated cycle of poverty. Farmer households also need help obtaining LPG (Liquefied Petroleum Gas), an energy source used for heating, cooling, and operation of appliances. Due to the high prices of LPG cylinders, farmers resort to local forests for firewood as an energy source, eventually leading to deforestation and the destruction of the environment. 

Solution: The solution to serve these poverty-stricken farmers is the biogas plant, an environmentally friendly option carrying economic benefits. Biogas is produced through the decomposition of organic waste. These biogas plants convert the methane in cow dung found on farms into an energy source, producing a clean and smokeless fuel. Waste management is also considered through this process, as the by-product is a nutrient-rich fertilizer that can be utilized for crop growth. As a result, this eliminates a farmer’s need to purchase LPG or firewood, allowing them to save money and protect the environment. 

WHEELS partner, Gram Samriddhi Foundation (GSF) has employed numerous innovative aspects to develop a highly scalable and cost- efficient solution to help India’s farmers. Through years of research and deployment experience, GSF has built the complete biogas plant using volume-driven agreements with quality manufacturers, enabling low-cost biogas plant solution. Now, GSF is integrating IoT (Internet of Things) technology that helps detect leaks or malfunctions within the biogas plant, allowing for remote monitoring and timely repairs. Another aspect that defines GSF’s innovative model is the simple step-by-step guide for easy installation.

Despite the cost-effectiveness of the biogas plants, an investment of nearly Rs. 30,000 to Rs. 40,000 can be a significant barrier to very- ow income rural families. To offset these costs, GSF has done the hard work of all compliances and qualifications to tap into subsidies that opens program reach to nearly every single State in the country. Through the National Biogas and Fertilizer Management Program, the government currently subsidizes Rs. 14,000 and Rs. 22,000 to the general and SC/ST (Scheduled Castes and Scheduled Tribes) farmers in India, respectively. This totals around 40 to 50% of the total cost for the biogas plant being paid for. Yet, the remaining money still becomes a challenge for the farmers. However, through its collaborations with microcredit partners like Rang De, WHEELS helps facilitate microloans for establishing biogas plants. Lastly, the compost that is a by-product of energy production saves nearly Rs. 10,000 for the farmer. With the combined economic benefits, GSF’s model recovers all the costs in the first year itself, making the deployment a source of income generation for the farmer. The environmental benefits are big bonus of course.