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

This technical note describes the development of a Microsoft Excel-based cost-benefit analysis (CBA) tool designed to evaluate the economic viability of deploying solar irrigation pumps (SIPs) in Rajasthan, India, specifically under component C of the PM KUSUM scheme.

• 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, a figure projected to reach 45 percent by 2030 based on an 8 percent compounded annual growth rate.
• The Rajasthan state government provides significant financial support for agricultural electricity, with a heavily subsidized tariff costing INR 16,000 Cr. annually.
• The PM KUSUM scheme aims to benefit Rajasthan by helping distribution companies (DISCOMs) reduce power purchase costs, minimize transmission and distribution losses, and decrease revenue gaps.
• The proposed CBA tool uses four specific metrics to determine the economic viability of SIPs for farmers, the state government, and DISCOMs: net present value (NPV), internal rate of return (IRR), benefit-to-cost (B:C) ratio, and payback period.
• Grid-connected solar irrigation pumps can reduce the carbon footprint by avoiding power procurement costs for DISCOMs and can provide farmers with an additional income source by feeding excess electricity back into the grid when the pumps are not in use.

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} }