Unlocking India's Agricultural Potential: The Mega Opportunity in Solar Pumps
India has close to 14 crore farmers.
Currently, only 3 crore of these have access to pumps (diesel and solar). There is a significant opportunity here: 30% of these farmers are running their pumps on diesel. Considering the average cost of a pump, including EPC, installation, and services, is ₹1.5 lakh, this implies an opportunity worth ₹1,350 billion.
The other 11 crore farmers who do not have access to pumps represent the MEGA opportunity. Of these, 70% are not near canals or rivers, implying an additional opportunity worth ₹11,550 billion.
Thus, the total market opportunity for SOLAR (pumps+++) as a service is ₹12.9 trillion!
Additionally, the PM's KUSUM scheme alone provides an opportunity of ₹875 billion, aiming to install a total of 35 lakh pumps over the next 5 years (with 3 lakh+ already installed).
Pump companies, EPC companies, and strategic solutions + service providers will benefit massively from this trend.
We will be discussing key listed companies that stand to benefit from this mega trend.
Conclusion
The potential for solar pumps in India is immense and largely untapped. With a significant portion of farmers still relying on diesel pumps or lacking access to pumps entirely, transitioning to solar presents not only an economic opportunity but also a chance to foster sustainable agriculture. The KUSUM scheme's support highlights the government's commitment to this transformation. As we explore the companies poised to capitalize on this trend, it becomes clear that the shift to solar-powered irrigation is not just beneficial but necessary for the future of Indian agriculture.
