Solar pump cooperative supports climate-smart agriculture in Gujarat

This case study examines the implementation of a solar pump cooperative in Dhundi, Gujarat, which provides irrigation and generates income for farmers by selling excess electricity to the grid. The model incentivizes sustainable groundwater use and reduces carbon emissions by replacing diesel pumps.

• The Solar Pump Irrigators’ Cooperatives Enterprise (SPICE) in Dhundi, Gujarat, enables farmers to earn income from both selling irrigation water and selling excess electricity to the grid. This model has increased the incomes of SPICE farmers by 45 percent between 2015-2016 and 2017-2018, with nearly half of their farm income derived from energy and irrigation sales.
• The solar pump initiative has lowered costs for water buyers. Farmers using the water for irrigation pay 250 Indian rupees (INR) per bigha (0.4 acres), which is half the price of INR 500 charged by diesel pump owners. It is estimated that 120 water buyers saved INR 5.4 lakh ($7,119) compared to purchasing from diesel pump owners.
• The project's success relied on a 25-year power purchase agreement with the local power utility, Madhya Gujarat Vij Company Limited (MGVCL), which bought electricity at INR 4.63 per kilowatt hour (kWh), supplemented by an IWMI bonus of INR 2.50 per kWh. Between June 2017 and May 2018, nine farmers generated 103,161 kWh, selling 74 percent of it to the grid for INR 5.26 lakhs ($6,935).
• The solar pumps contribute to climate change mitigation by replacing diesel pumps, saving approximately 40,000 kilograms of carbon dioxide emissions by 2018. The document describes solar power as a 'cash crop' or 'remunerative crop' because it requires no fertilizer, irrigation, or labor and is resilient to floods and droughts.
• To prevent groundwater exploitation, the model emphasizes the importance of incentives that encourage farmers to pump only the water required for irrigation and sell the remaining energy to the grid.

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} }