The government is offering up to 90 per cent subsidy on the installation of solar water pumps to the consumers to encourage their usage in the country
On the back of support from government of India to encourage use of new and renewable energy, the solar water pumping systems market in the country has recorded a substantial growth in the last few years.
India’s solar water pumping system market is estimated to grow at a compound annual growth rate (CAGR) of more than 27 per cent during 2018-2024, according to a latest report by Research and Markets.
The National Solar Mission of India, an initiative by the government to promote solar energy, has set a target of achieving 100 GW of solar power by the year 2022. This has pushed the demand for solar-powered resources in India, the report said.
Government providing subsidies
The report said that total cost of solar water pumping systems is more than the diesel and electric pumps. However, the government is offering up to 90 per cent subsidy on the installation of solar water pumps to the consumers to encourage their usage in the country.
Based on the power ratings, solar pumps in the 3.1 to 10 HP segment captured the highest share of revenues in 2017, followed by up to 3 HP solar pumps segment. The solar pumps segment of 3.1 to 10 HP is likely to record the maximum growth rate during the given period mainly due to the segment affordability and subsidies offered by the government.
In addition, with reducing groundwater level, there is an increasing demand for submersible solar pumps and the segment is likely to witness a significant growth over the next few years, the report noted.
Region-wise, the maximum revenue share in overall solar water pumping systems market in India is captured by western region in 2017. However, the northern region is estimated to record the maximum growth during 2018-2024, owing to targets set by several state governments for the installation of solar pumps in the region.