Solar irrigation in India: utilization drivers and effects on energy use, cropping intensity, and farm profits

This study investigates the determinants of solar pump utilization and its impacts in India, using a two-period before-after panel dataset from a primary survey of 814 farmers across nine districts in four major states-Uttar Pradesh, Rajasthan, Odisha, and Tamil Nadu. It addresses two core questions: what drives solar pump utilization post-adoption, and what are the impacts on energy use, agricultural outcomes, and farm profitability. A two-stage least squares strategy addresses endogeneity in installed capacity, followed by a fixed-effects panel model to estimate causal impacts. The paper finds that utilisation is structurally driven by installed capacity, groundwater depth, and operational experience (pump age). Impact estimates demonstrate robust but heterogeneous benefits: solar adoption reduces diesel consumption by 36%–91% across districts, with the largest absolute declines in Namakkal (Tamil Nadu) and Jaipur (Rajasthan). Electricity impacts are mixed, reflecting either substitution or irrigation expansion depending on local hydro-geological contexts. Crucially, it identifies a decoupling of utilisation intensity and economic value that manifests as a ‘livelihood rebound’ in rainfed regions: in shallow-aquifer districts like Keonjhar (Odisha), even lower absolute utilisation hours drive relative gains in gross cropped area (31%–54%) and farm profits (69%–80%) that are comparable to those in high-utilisation deep-aquifer regions. These findings highlight the transformative potential of solar irrigation for energy transition and rural incomes, while underscoring the importance of tailoring interventions to local agro-hydrogeological contexts.