India’s micro, small, and medium enterprise (MSME) sector is undergoing a green transition, with nearly 20% of all MSMEs owned by women, contributing significantly to innovation, employment, and sustainable growth. At the intersection of gender empowerment and environmental sustainability, women entrepreneurs in the green energy space are pivotal to India’s climate goals. However, they face unique barriers even as a suite of policy measures and partnerships seeks to catalyze their participation.
Women-led green energy entrepreneurship illustration
Policy Support for Women in Green Energy
1. Dedicated MSME Schemes
The Ministry of MSME reserves special support for women under flagship credit-linked subsidy programmes:
- Stand-Up India: Loans of ₹10 lakh–₹1 crore for greenfield projects in manufacturing, trading, or services, with up to 85% project cost coverage for women entrepreneurs.
- Mudra Yojana (PMMY): Shishu (≤₹50 000), Kishore (₹50 000–₹5 lakh), and Tarun (₹5–10 lakh) loans, collateral-free, with preferential rates for women.
- Prime Minister’s Employment Generation Programme (PMEGP): Women beneficiaries receive a subsidy of 25–35%, with only 5% own contribution in urban and rural areas, respectively.
- Stree Shakti Package, Annapurna, and Mahila Udyam Nidhi: State and central schemes offering subsidized loans, entrepreneurship development programmes, and margin money support.
2. Renewable Energy Financing by IREDA
The Indian Renewable Energy Development Agency (IREDA) extends term loans for up to 80% of project cost in grid‐connected projects and 70% in waste‐to‐energy ventures, with no cap on equipment financing for solar, wind, biomass, and emerging technologies, encouraging women‐led green enterprises to scale.
3. Public–Private Partnerships and Platforms
- GroW x Women Entrepreneurship Platform (WEP): A MoU between the gender‐lens finance network GroW and NITI Aayog’s WEP to co-curate investor-entrepreneur matchmaking, mentorship, and capacity building for women-led green enterprises.
- “Women in Renewable Energy” Initiative: A joint effort by Shakti Sustainable Energy Foundation and TERI providing funding, training, and mentorship tailored to solar entrepreneurs.
4. Capacity Building and Mentorship
Ongoing programmes demystify business and technical processes for women at the last mile:
- ONU’s last-mile support packages offer on-site mentoring in market identification, supplier negotiations, and financial planning for rural energy entrepreneurs.
- Clean Energy Access Network (CLEAN) and Women in Solar Energy (WISE India) facilitate industry-expert mentorship, networking, and technical skills development.
Challenges for Women Entrepreneurs in Green Energy
Despite robust policy frameworks, women energy entrepreneurs confront systemic hurdles:
1. Financial Barriers
Women-led ventures often lack collateral and formal credit history, facing opaque financing requirements and lower approval rates compared to male-led firms.
2. Socio-Cultural Constraints
Gender norms restrict mobility and decision-making authority, limiting women’s ability to attend training, manage field operations, or access distant markets.
3. Skill-Gap and Confidence
Discriminatory access to technical education and business training results in lower confidence and technical expertise, hindering technology adoption and scale-up.
4. Limited Market Access and Networks
Scarce representation in industry forums and investor circles reduces visibility, constraining women’s ability to secure partnerships and customers beyond local markets.
Way Forward
To unlock the full potential of women-led green MSMEs, stakeholders must:
- Enhance Last-Mile Finance Access: Simplify collateral norms and deploy mobile-based credit evaluation tools.
- Expand Gender-Lens Funds: Incentivize private investment through blended finance models targeting women in renewables.
- Scale Training Ecosystems: Partner with technical institutes and NGOs for modular skill development in solar, biomass, and waste-to-energy technologies.
- Strengthen Networks and Visibility: Create sector-specific women’s forums and incubators to facilitate peer learning and investor connections.
- Monitor and Evaluate Impact: Introduce sex-disaggregated data in scheme dashboards to track reach, outcomes, and iterate policy design.
By addressing these challenges with targeted interventions and collaborative platforms, India can accelerate women’s leadership in the green energy transition, driving sustainable growth while empowering a critical segment of its entrepreneurial ecosystem.