CEEW & Villgro Join Hands to Foster SHSPs In Villages

CEEW & Villgro Join Hands to Foster SHSPs In Villages

A USD 3 million initiative introduction by Council On Energy, Environment & Water (CEEW) and Villgro, one of the world’s largest social enterprise, Powering Livelihoods is paving the way to bring clean energy-based solutions to the rural economy in a gender-inclusive manner.

Powering Livelihoods works with enterprises developing innovative appliances, such as Sub-HP solar pumps, (SHSPs), micro food processing appliances, dryers.

Powering Livelihoods, through its recent report provides insights to entrepreneurs, investors, and policymakers who have their sights set on the micro solar pumps category.

The report has shed light on SHSPs and how to promote them.

SHSPs Integral To Meeting The Needs Of Farmers

Solar pumps aid farmers significantly by reducing emissions as well as input costs. SHSPs could prove to be an effective solution for marginal farmers who are looking to meet their irrigation requirements. The absence of subsidies for SHSPs is a roadblock to large-scale adoption. As a solution to this, access to end-user financing, is essential to deploying SHSPs at scale.

Further, low head and moderate flow SHSPs that boast of output up to 30,000 LPD is adequate to aid sustainable irrigation for marginal farmers. SHSP manufacturers predominantly focus on low head and moderate flow irrigation pumps.

Not irrigation alone, but SHSPs can aid farmers engaged in livelihood activities such as fisheries, aquaculture, and animal husbandry (such as dairy and poultry). Besides, SHSPs are a credible solution for horticultural crops because of their capacity. This is because crops such as paddy need more water of up to 50,000 LPD.

The Market Landscape For SHSPs For Irrigation

As per the study, the top ten states that have 91% share of the overall serviceable market for SHSPs are West Bengal, Kerala, Bihar, Andhra Pradesh, Assam, Maharashtra, Karnataka, Tripura, Uttar Pradesh, Tamil Nadu. Of these states, West Bengal, Kerala, Bihar, and Andhra Pradesh make up as much as two-thirds of the market size, which further accounts for a total sales potential of over than 2 million SHSPs.

The report finds that the top ten districts of the states aforementioned make up close to 26% of the (Serviceable Addressable Market) SAM, or 0.8 million SHSPs. These entail four districts from West Bengal, four from Kerala, and two from Bihar. As per the study, an enterprise can aim for regions with developing clusters of districts, which will facilitate partnerships, after-sales support, and help address logistical concerns.

The analysis suggests that SHSP manufacturers could look at irrigating marginal holdings as a priority market segment target, since such groups of farmers are already using diesel pumps for irrigation. SHSPs are extremely economically feasible, given the increasing fuel cost of diesel/kerosene pumps.

With regards to the priority markets for targeting unirrigated holdings, the top 10 districts occupy close to 27% of market share with 549,000 SHSPs. States that dominate the market for these holdings are Kerala (30%) and West Bengal (14%) with 892,000 SHSPs.

Market Share For SHSPs For Animal Husbandry

The Total Addressable Market (TAM) for SHSPs for animal husbandry is 1.5 million SHSPs, while the SAM is 0.4 million SHSPs.

Uttar Pradesh, West Bengal, Bihar, Maharashtra, Madhya Pradesh, and Gujarat boast of the highest number of households under SAM towards the deployment of SHSPs. The top 10 districts make up close to 31% of the SAM – with 128,000 SHSPs. These entail five districts in Uttar Pradesh, two in West Bengal, and one each in Rajasthan, Madhya Pradesh, and Maharashtra, respectively. Clusters can be seen in Uttar Pradesh, West Bengal, Gujarat, Bihar, and Madhya Pradesh and these can be targeted as market strategy.

Policies To Foster SHSPs

The report observes that there are several policies in place to for farmers as well an entrepreneurs with regards to SHSPs. Under this, the subsidy scheme includes Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) by Ministry Of Agriculture & Farmers Welfare (MoAFW). There is financial and marketing support for pump manufacturers in the form of Credit Guarantee Trust Fund by Ministry of Micro, Small and Medium Enterprises and SIDBI 47. The Marketing Assistance Scheme also provides support in this area.

Measures For SHSP-Conducive Environment

Inclusion of SHSPs in  schemes that are already existing or introducing an explicit scheme, adopting a flexible approach to pump performance standards, rewarding efficiency through innovative tendering along with promoting SHSP at state level should be aligned with horticulture departments and state rural livelihood missions. Pilot demonstrations and end-user financing scheme for SHSPs are critical to encourage SHSPs.

"Want to be featured here or have news to share? Write to info[at]saurenergy.com