Conference Agenda

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 955

farmers across nine districts in four major states—Uttar Pradesh, Rajasthan, Odisha,

and Tamil Nadu. We address 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 (2SLS) strategy addresses endogeneity in installed capacity, followed by a fixed-effects panel model to estimate causal impacts. Utilization is significantly influenced by installed capacity, groundwater depth, and operational experience, proxied by pump age. Solar pump adoption reduces average diesel consumption by 34–86%, with the largest declines among large farms and diesel-reliant users. Electricity impacts are heterogeneous: reductions of 20–42% are observed in two districts, while others show increases up to 13%, reflecting irrigation expansion or insignificant results. Gross cropped area increases by 16.7–53%, driven by landholding size and constrained by pre-existing electric pump access. Annual farm profits rise across all districts, ranging from 27% to over 100%. These findings highlight the transformative potential of solar irrigation for energy transition, agricultural productivity, and rural incomes, while underscoring the importance of tailoring interventions to local agro-economic and infrastructural conditions.