Overcoming Energy Barriers: How Solar Panels Help Rural ATMs Serve Remote Locations

ATMs have become more than just machines that dispense cash. They symbolize access to money, essential banking services, and greater financial freedom. However, in many rural regions, especially across India, ensuring consistent ATM availability remains a significant challenge. 

One of the main barriers is the lack of reliable electricity. This is where Solar Panels and Solar Systems provide an effective, sustainable solution, allowing rural ATMs to function efficiently and serve remote communities without interruption.

Electricity is something many of us take for granted. But in remote villages and underserved areas, frequent power cuts or even a complete lack of grid connectivity is common. 

This makes it difficult for banks to maintain ATM services. Without a stable power source, ATMs go offline, frustrating users and forcing them to travel long distances to find another machine.

Traditionally, banks have used diesel generators as backups. But they’re noisy, expensive to run, and harmful to the environment. Plus, transporting fuel to far-flung areas is another challenge. This is where Solar Panels step in with a smarter, greener alternative.

To be fair, India has made impressive progress in rural electrification. The country cut its energy deficit from 4.2% in FY 2013-14 to just 0.1% by June 2024 and achieved 100% electrification of un-electrified households.

However, while grid connectivity has technically reached these areas, reliable and uninterrupted power supply still remains a challenge especially in remote locations. This ongoing gap highlights the continued need for sustainable solutions like solar power to ensure consistent ATM operations in such regions.

Before diving deeper, let’s quickly break it down. Solar Panels are devices that capture sunlight and convert it into electricity. A full Solar System includes not just the panels, but also a battery (to store power), an inverter (to manage the energy flow), and sometimes a backup generator for cloudy days.

The best part? Once installed, Solar Systems require minimal maintenance and have no fuel cost. This makes them perfect for off-grid locations where running traditional power lines isn’t feasible.

By 2023, utility-scale solar PV costs dropped further another 12% year-on-year, bringing the global average to USD 0.044 per kWh, marking a 90% cumulative drop since 2010. This dramatic decline in cost makes solar energy more accessible and affordable than ever before.

1. Reliable Power, Anytime

Solar Panels provide a steady and consistent power supply. Most Solar Systems used for ATMs come with battery storage, meaning the ATM can run during the night or on cloudy days too. This ensures people can access cash and banking services at any time, not just when the sun is out.

2. Lower Operating Costs

Running a diesel generator costs money every single day. Fuel prices are high and can vary. Solar Systems, on the other hand, harness free energy from the sun. 

Apart from a small amount spent on maintenance, the ongoing costs are extremely low. Over time, banks save significantly.

3. Eco-Friendly and Quiet

Solar Panels don’t pollute. Unlike diesel generators that release harmful smoke and noise, Solar Systems are clean and silent. This makes them ideal for small villages and environmentally sensitive areas.

4. Easy to Install in Remote Locations

One of the great advantages of Solar Panels is that they can be installed almost anywhere there’s sunlight. Even if a village is located on a hilltop or deep in a forest, a Solar System can be set up to power an ATM without needing miles of cables.

5. Boosts Financial Inclusion

With Solar Systems, banks can expand their reach into truly remote locations. People who once had to travel hours for simple banking services can now access ATMs in their own village. This boosts financial inclusion and helps rural communities become more connected to the economy.

Take the example of a small village in Rajasthan. Before Solar Panels were installed, the village ATM worked only a few hours a day, sometimes not at all. With a proper Solar System, the ATM now works 24/7. 

Farmers no longer need to travel to nearby towns for cash. Local businesses thrive, and the entire village feels more empowered.

Multiply this story across hundreds or thousands of villages, and the impact becomes truly game-changing.

What Makes Solar Systems Ideal for Banks?

• Scalability: Banks can choose Solar Systems of various sizes based on the ATM’s power needs.

• Smart Monitoring: Many modern Solar Panels come with systems that allow remote monitoring. Bank staff can track performance and address issues without needing to visit.

• Government Incentives: In India, the government offers subsidies for installing Solar Systems, especially in off-grid areas. This makes it even more attractive for banks to adopt this solution.

Challenges and How to Overcome Them

No solution is perfect. Here are a few challenges and how they’re being tackled:

• Initial Cost: While Solar Systems save money in the long run, the upfront cost can be high. Government subsidies and financing options can help banks cover these costs.

• Weather Dependence: Solar Panels perform best in sunny conditions. However, modern systems come with high-capacity batteries to ensure backup power during cloudy or rainy days.

• Maintenance Needs: Though low, Solar Systems do need occasional cleaning and checks. Local technicians can be trained to handle basic maintenance.

A Smart Investment for the Future

As technology advances and costs come down, Solar Panels are becoming more efficient and affordable. For banks, investing in Solar Systems for rural ATMs is not just a way to cut costs, it’s a way to serve the community better, promote sustainability, and strengthen their network.

Moreover, with rising awareness about climate change, choosing green energy isn’t just good for business, it’s the responsible thing to do.

As per the RBI’s 2022 “Benchmarking India’s Payment Systems” report, India has only 15 ATMs per 100,000 people, with nearly 80% of ATMs located in urban areas, while 67% of the population lives in rural regions. 

Highlighting a significant rural service gap. By installing solar-powered ATMs in these underserved areas, banks can bridge this gap while championing clean energy solutions.

Final Thoughts

Power problems shouldn’t stand in the way of financial access. Thanks to Solar Panels and Solar Systems, banks can now bring reliable ATM services to even the most remote parts of the country. It’s a win-win for everyone: banks save money, the environment is protected, and rural communities get the access they deserve.

As we move toward a more inclusive and sustainable future, Solar Panels are proving to be more than just a backup—they are the backbone of rural banking transformation.

For more on how solar powered ATMs are revolutionizing rural areas, check out our complete blog here. 

1. How does CBSL’s solar solution ensure reliable power for rural ATMs?

CBSL’s solar systems use batteries to provide uninterrupted, around-the-clock power, keeping ATMs operational in rural areas with poor or no grid electricity.

2. What cost advantages do CBSL solar-powered ATMs offer compared to diesel generators?

CBSL eliminates daily fuel and generator maintenance costs, making rural ATMs far more economical and sustainable.

3. How do CBSL solar ATMs enhance financial inclusion in underserved villages?

CBSL enables banking services in remote communities, so villagers can access cash and financial services locally, without traveling far.

4. What support does CBSL provide for installing solar systems in challenging rural environments?

CBSL delivers scalable, easy-to-install solar systems and helps banks access government subsidies for solar ATM deployment in difficult locations.