Cost-Benefit Analysis Tool for Deploying Solar Irrigation Pumps: The Case for Rajasthan

The document introduces a cost-benefit analysis (CBA) tool designed to evaluate the financial feasibility of solar irrigation pumps (SIPs) in Rajasthan. By utilizing metrics such as net present value (NPV), internal rate of return (IRR), benefit-to-cost ratio, and payback period, the tool aims to demonstrate the monetary benefits for farmers, DISCOMs, and the state government. The transition to SIPs is intended to reduce the state's heavy electricity subsidies for agriculture, lower carbon footprints by avoiding power procurement, and provide farmers with additional income through feeding excess electricity back into the grid.

• The agriculture sector in Rajasthan is a major consumer of electricity, accounting for approximately 42 percent of total electricity sales by distribution utilities in fiscal year 2022, with a projection to reach 45 percent by 2030.
• Rajasthan provides substantial financial support for agricultural electricity, with heavily subsidized tariffs totaling INR 16,000 Cr. annually.
• The PM KUSUM scheme, specifically component C, is identified as a means to reduce power purchase costs, minimize transmission and distribution losses, and decrease revenue gaps for DISCOMs.
• Grid-connected solar irrigation pumps can provide farmers with a new revenue stream by feeding generated electricity back to the grid when the pumps are not in use.
• The proposed CBA tool uses four specific economic metrics to determine viability: net present value (NPV), internal rate of return (IRR), benefit-to-cost (B:C) ratio, and payback period.

APA

World Resources Institute (n.d.). Cost-Benefit Analysis Tool for Deploying Solar Irrigation Pumps: The Case for Rajasthan. https://www.wri.org/research/cost-benefit-analysis-solar-irrigation-pumps-rajasthan

Chicago

World Resources Institute. Cost-Benefit Analysis Tool for Deploying Solar Irrigation Pumps: The Case for Rajasthan. n.d. https://www.wri.org/research/cost-benefit-analysis-solar-irrigation-pumps-rajasthan.

Wikipedia

{{cite report |author=World Resources Institute |title=Cost-Benefit Analysis Tool for Deploying Solar Irrigation Pumps: The Case for Rajasthan |url=https://www.wri.org/research/cost-benefit-analysis-solar-irrigation-pumps-rajasthan |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendcostbenefit, author = {{World Resources Institute}}, title = {{Cost-Benefit Analysis Tool for Deploying Solar Irrigation Pumps: The Case for Rajasthan}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/cost-benefit-analysis-solar-irrigation-pumps-rajasthan}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }