Indian governments are tackling climate change and poverty threats through a major expansion of solar irrigation. And a key component of the rollout is a CGIAR Research Program on Water, Land and Ecosystems (WLE) business model that protects groundwater and bolsters income of smallholder farmers.

In 2018, the government of India formally confirmed a previously announced plan for a national mega scheme to expand solar energy through a total investment of USD 16.4 billion, of which the central government will provide a 30% capital subsidy. The 10-year scheme aims to convert 7.5 million currently subsidized electric irrigation pumps to solar.

The scheme, KUSUM (Farmer Energy Security and Development Mission), promotes the Solar Power as Remunerative Crop (SpaRC) business model, in which farmers form co-ops to sell surplus power back to utilities. The sell-back option provides incentive to use energy and groundwater judiciously.

This model was first developed in 2016-17 by WLE, the CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS) and the IWMI-Tata Program (ITP). The KUSUM announcement followed further consultations between ITP and the Indian Minister of Finance.

The state of Gujarat is already rolling out the model. Gujarat has announced its own pilot investment of USD 120 million. The government of Gujarat estimates that sale of surplus power will double the income of participating farmers. At least seven Indian states are now also piloting the model.

Speaking of the model’s potential, Diego Senoner, technical expert with the Indo-German Energy Program, stated that, "a well-designed KUSUM policy is important for India to secure sustainable development of agriculture, maintain food security and safeguard groundwater during times of changing climatic conditions."

Based on India’s experience to date, further rollout is expected to 1) introduce clean energy for irrigation and lower emissions; 2) build smallholder resilience by increasing productivity, food security and incomes; and 3) improve the financial sustainability of utilities.

In the past, irrigation expansion in India has brought about several challenges that switching to solar-powered pumps can mitigate. Notably, subsidies for fuel and electricity have led to over pumping and groundwater depletion. Providing subsidized electricity to farmers has even bankrupted some electric utilities.

On the other hand, when the SpaRC model was first piloted, the results were impressive: Farmers’ incomes doubled, mostly from the sale of excess power, but also due to reduced pumping costs.

The model is now attracting attention from outside of India: With the support of WLE and the Swiss Development Cooperation (SDC), IWMI has initiated a long-term regional partnership to promote solar irrigation in India, Pakistan, Nepal and Bangladesh. WLE will also disseminate SPaRC lessons to countries in sub-Saharan Africa and Latin America.