II. INTRODUCTION PURPOSE OF THIS REPORT This report assesses the prospects of various models of solarizing agricultural electricity in the state of Rajasthan—a state that embodies India’s national solar mission but is challenged by problems that solarization might help to solve. The Kisan Urja Suraksha evem Utthan Mahabhiyan (KUSUM) scheme seeks to offer choice between several competing models of solarization, providing regulatory and developmental support for both substation-level solar feeders and individual solar pumps. Both models have emerged from pilots having impressed both the government and prominent NGOs, and today both are being rolled out on a national level. It is currently unclear which model provides greater benefits and, as such, deserves greater investment. Having facilitated a successful feeder pilot in Maharashtra state, Prayas Energy Group concludes that feeders are “an excellent alternate supply option,” and in subsequent reports has endorsed feeders for their scalability and financial viability relative to solar pumps.6 7 Meanwhile, researchers from the World Bank suggest that farmers who self-generate electricity could gain a valuable secondary income stream with grid-connected solar pumps, as farmers who generate surplus electricity can then sell it to distribution companies (Discoms). Hence, this mechanism encourages farmers to economize their power use and, thus, their groundwater pumping.8 When farmers are strictly consumers of free or lowcost electricity supplied by solar feeders, pump proponents would argue there is no incentive to conserve. These reports from Prayas and the World Bank are by no means alone in vouching for one model of KUSUM over its alternatives—they are merely representative of the prevailing arguments being made. This report provides an independent assessment of the relative costs and benefits of both solar feeders and grid-connected solar pumps. Specifically, this report assesses the ability of each model to achieve the desired goals of stakeholders in Rajasthan, offering recommendations to increase benefits, reduce implementation barriers, and mitigate unintended consequences.
KUSUM OVERVIEW Launched 8 March 2019, KUSUM seeks to increase farmer and Discom welfare and conserve groundwater resources. The scheme supports installation of solar photovoltaics (PV) in agricultural areas. Its specific goals are to (1) minimize transmission and distribution (T&D) losses, (2) raise farmer income by enabling them to lease land for solar installations and/or sell solar power to Discoms, and (3) reduce agricultural subsidies. The national scheme has three components:9
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