DEVELOPMENT ALTERNATIVES, INC./FINNET
The agricultural sector in India faces significant challenges, particularly with respect to poverty alleviation, inequality, and sustainable environmental management.
2016 · 7 pages

Abstract
These challenges are exacerbated by population growth, climate change, and volatile political and economic processes. In India, approximately 25 million grid- and diesel-powered pump systems are installed, with solar-powered pumps offering a viable alternative. Replacing these systems with solar-powered pumps will yield numerous benefits, including climate change mitigation, improved livelihoods, and greater quality of life. Solar pump systems have shown significant promise, but challenges in implementation continue to prevent the full realization of environmental, economic, and social gains. In this context, the Indian government is promoting solar pumping technologies through direct capital subsidies, financing schemes, and legal and regulatory development. This research aims to understand the different ways solar pump systems have been promoted in order to identify barriers to, and therefore opportunities for, greater scale. Three small-scale system implementation models across India are examined: grant-funded pay-it-forward systems for agricultural use in Uttar Pradesh, grid-tied irrigation systems in Karnataka, and direct-to-customer financed systems for salt farming in Gujarat. These models are compared to reveal implementation challenges both unique and common across the three case study areas. The research employed a mixed methods research strategy, drawing primarily on the case study approach, with primary data collection consisting of semi-structured interviews with solar pump system users and key informant interviews with manufacturers, system integrators, installers, and project implementers. The needs of solar pump users vary greatly, even within the agriculture sector, shaped by technical and environmental requirements, as well as the needs and desires of the communities involved. The three case studies highlight one of the most common approaches, wherein an institution in collaboration with local farmers finds an appropriate solar pump system solution. This lends itself to a community-focused lens, where a user is not a stand-alone purchaser or investor in a solar pumping system. In Uttar Pradesh, 6 solar pumps have been deployed via a partner organization, with 4 users interviewed. In Karnataka, 200 pump systems are expected to be installed by the end of the year, with 20 users interviewed. In Gujarat, approximately 250 salt farmers use solar pumps, with plans to distribute 200 more by 2017, and 25 users were interviewed. Semi-structured interviews with solar pump system users were the main source of data collection, with key informant interviews conducted to complement the perspectives of system users and to learn more about opportunities and challenges throughout the supply and value chains. The financial model for each case study is as follows: in Uttar Pradesh, a revolving fund is used; in Karnataka, a grid-connected model is employed; and in Gujarat, a consumer finance model is utilized. The usage of solar pump systems varies across the three case studies, with irrigation being the primary use in Uttar Pradesh and Karnataka, and salt extraction being the primary use in Gujarat. The number of installed systems also varies, with 6 systems in Uttar Pradesh, 46 systems in Karnataka, and 250 systems in Gujarat.
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