InfralineEnergy Publications

Solar Irrigation

Pumps in India: Market Potential

August 2014

India is primarily an agricultural nation. A large portion of India’s population is dependent on agriculture for theirlivelihood. India's agro exports during 2013-14 touched USD 45 billion as against USD 41 billion in 2012-13 and USD 25billion in 2011-12. The growth rate of agricultural GDP over last decade is given in Figure1. The major requirement ofagriculture sector is water resources. Agriculture accounts for 80 percent of water needs at present, out of which 60percent of irrigation water comes from groundwater. The water resources potential of the country as runoff in therivers is about 1,869 Billion Cubic Meters (BCM). However, after allowing for natural processes like evapo-transpiration, only about 1,123 BCM of the total annual water potential is available.

Figure 1: Rate of Growth of Agriculture and Allied Sectors (in percent)

9.05

0.18

5.144.16

5.8

0.090.81

7.9

3.6

1.42

4.71

0123456789

10

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

20

11

-12

20

12

-13

20

13

-14

Source: Planning Commission

Figure 2: Power Consumption in Agricultural Sector (in GWh)

20961 4405684019 81673 99023 140960 153116114068

175419280206

322459

455748

785194852903

0

200000

400000

600000

800000

1000000

1200000

End of 6th Plan

End of 7th Plan

End of 8th Plan

End of 9th Plan

End of 10th Plan

End of 11th Plan

Ist year of 12th

Plan

Total Consumption Agriculture Consumption

Source: CEA

The water from underground sources is extracted by using pumps. As per the 4th Minor Irrigation census, the numberof pumps used in India under groundwater irrigation is 19.76 million and that under surface lift irrigation is 0.65million. Out of this, approximately 88 percent of pumps used for irrigation are either diesel or electricity based.Thus, there lies a potential of replacement of these pumps with solar pumps especially in the areas where solarenergy is available during irrigation periods. About 5,000 trillion kWh per year (equivalent to 600 GW) energy isincident over India’s land area. In most parts of India, clear sunny weather is experienced 250 to 300 days a year. Theannual radiation varies from is comparable with radiation received in the tropical and sub-tropical regions.Agriculture sector in India is utilizing almost one fourth of the total power being consumed in the country as depictedin Figure 2.Even after an increment in power generation and utilization, the nation still remains power deficit. Thus dependencyon other modes like substitution of direct power by diesel increases.Till the end of XI plan, total 113.24 million hectares of potential has been created including all major, medium andminor irrigation projects. Out of this, 89.94 million hectares has been beneficially utilized as depicted in Figure 3.Complete utilisation of irrigation potential will require development of irrigation sector including waterresources, pumps as well as Government support.

Figure 3: Irrigation Potential Created and Utilized (in million hectares)

76.44

113.24

68.59

89.94

40

60

80

100

120

7th Plan

Annual Plan

8th Plan

9th Plan

10th Plan

11th Plan

Potential Created

Potential Utilized

Source: Planning Commission

Solar Irrigation Pumps in India: Market Potential

Solar Irrigation

Pumps

Drivers

- Growing Irrigation Potential

- Rising Rural Incomes

- Mechanization of Agriculture: Increased demand for irrigation pumps

- Institutional Support

- Significant Savings in fuel and subsidy

Competitive Advantage

- Independent of Grid based electricity and expensive diesel

- Environment Friendly

- Special Support to individuals for Solar Pumping Systems up to 5kWp

Institutional Support

- Increased Availability of Credit for Agricultural Activities

- JNNSM Phase II:

> Solar Water Pumping: Thrust Area for promotion of off-grid solar

> Manufacture of Permanent Magnets and Other Motors for Solar Pumps: Thrust Area for promotion of Solar Manufacturing Capability

Key Highlights:

Current Scenario: Indian Agricultural Pump-set Market

Cost of Replacement of traditional irrigation pump-sets with solar pump-sets

Benefits of using Solar Pumps:

Environmental Benefit

Economic Benefits

Case Study: State specific modeling for solar pump

Key Questions Answered:

What is the market potential for solar pumps in India?

What are the drivers and challenges in their adoption in India?

What are the various technology options for large-scale implementation of solar pumps in India?

What are the key factors that impact the cost of replacement of traditional pump-sets with solar pump-sets?

What financing models are adopted?

Solar Irrigation Pumps in India: Market Potential

1. Introduction

• Indian Agriculture Outlook

Unreliability of Monsoon

Current Irrigation Scenario: Ground

Water Irrigation

• Potential of Solar Irrigation in India

Solar Radiation in India

Agriculture Land Holdings

Agriculture Pattern in India

Requirement of Water for Major

Crops

Availability of Power for Agriculture

Water Resources and Irrigation

Potential

2. Agricultural Pump-sets: Usage and

Technology

• Use of Pumps in Agriculture

• Technologies in Use

3. Substitution of Conventional Pump-sets

with Solar Pump-sets

• Cost of Replacement

Capital Cost

Operational Cost

• Savings

Diesel and Electricity savings

Subsidy Savings

Other Benefits

• Environmental Impact

• Challenges

4. Financing Mechanisms

• Subsidy and Incentive Schemes

• Financial Institutions

5. Case Study: Rajasthan Model

• State Specific Hydrogeology

• Usage of Pumps for Irrigation

• Savings in Cost and Fuel

6. Way Forward

• Second Green Revolution: Expected

Path

• Integration with modern irrigation

methods

• Global Experiences

7. Profile of Major Players

Solar Irrigation Pumps in India: Market Potential

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