Solar pump cooperative supports climate-smart agriculture in Gujarat

The case study examines the Solar Pump Irrigators’ Cooperatives Enterprise (SPICE) in Dhundi, Gujarat, which uses solar pumps to provide irrigation and sell excess electricity to the grid. This model has increased farmer incomes, reduced water costs for buyers, and lowered carbon emissions by replacing diesel pumps. Key success factors include a 25-year power purchase agreement with the local utility, MGVCL, and a financial structure combining farmer contributions with research grants. The project demonstrates that solar power can act as a 'cash crop' for farmers, provided incentives exist to prevent groundwater over-exploitation.

• The solar pump cooperative in Dhundi has increased the incomes of participating farmers by 45 percent between 2015-2016 and 2017–2018, with energy and irrigation sales accounting for nearly half of their farm income.
• The project provides a more affordable irrigation option for water buyers; those using the solar pumps pay 250 Indian rupees (INR) per bigha, compared to the INR 500 charged by diesel pump owners.
• The initiative contributes to climate change mitigation by replacing diesel pumps with solar energy, resulting in an estimated saving of nearly 40,000 kilograms of carbon dioxide emissions by 2018.
• A critical success factor was the 25-year power purchase agreement with the local utility, Madhya Gujarat Vij Company Limited (MGVCL), which allows the cooperative to sell electricity at a fixed rate, removing price risk.
• The model demonstrates that solar pumps can function as a 'cash crop' or 'remunerative crop' because they are not subject to the risks of drought, floods, or the need for labour and fertiliser, though the document warns that incentives must be maintained to prevent groundwater exploitation.

APA

Verma, S. (2020). Solar pump cooperative supports climate-smart agriculture in Gujarat. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/Dhundi-solar-pumps-case-study-2.pdf

Chicago

Verma, Simant. Solar pump cooperative supports climate-smart agriculture in Gujarat. Climate and Development Knowledge Network, 2020. https://cdkn.org/sites/default/files/files/Dhundi-solar-pumps-case-study-2.pdf.

Wikipedia

{{cite report |last1=Verma |first1=Simant |title=Solar pump cooperative supports climate-smart agriculture in Gujarat |publisher=Climate and Development Knowledge Network |date=May 2020 |url=https://cdkn.org/sites/default/files/files/Dhundi-solar-pumps-case-study-2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{verma2020solar, author = {Verma, Simant}, title = {{Solar pump cooperative supports climate-smart agriculture in Gujarat}}, institution = {Climate and Development Knowledge Network}, year = {2020}, month = may, url = {https://cdkn.org/sites/default/files/files/Dhundi-solar-pumps-case-study-2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }