Technological innovation and product democratisation to rule solar pumps

Solar pumps have tremendous market potential in a tropical country like India. Significant investments and innovations in the sector are set to drive growth and create a level playing field for market players.

Solar pumps have been in use since the late 1970s and have since then been growing in product design and efficiency. In India, the solar pump market is expanding due to multiple factors such as abundance of sunlight, limited grid access, government support, industry innovations, and long-term cost and energy efficiency. Even in areas where electricity supply is limited, farmers and other users of solar pumps can easily access the power of the sun to fuel solar pumps and conduct activities such as irrigation of agricultural land and provision of drinking water. We explore in detail the factors driving this market and what can be done to push growth further.

Fresh finance and innovations fuelling market growth
Rangarajan Ramaswamy, Senior Vice President, Water Utility Export, Grundfos Life Link & Solar, Grundfos India, shares with us, “As a company that firmly believes in sustainability, we are constantly working on solutions that harness renewable energy. With applications to improve drinking water accessibility and agriculture, 6 percent of our total portfolio caters to this market currently. Our cutting-edge solar pumping solutions will help farmers in remote locations access water with minimal energy consumption. Grundfos has sold about 50,000 solar pumps so far, of which 46,000 of them are running successfully and creating a positive impact on 9.2 million people without access to drinking water, apart from supporting multiple farmers with daytime irrigation.”

He adds, “In order to strengthen our presence in the solar market, the group has already planned an investment of ₹100-125 crores. This investment started in 2019 and will continue over the next couple of years in a phased manner.”

New technologies that enhance efficiency and reliability of solar pumps are also being seen in the market recently. Grundfos recently launched its innovative, reliable and high-efficiency stainless steel submersible pumps with DC (PMSM) motors in the 3 HP and 5HP range that caters to the agriculture and water supply market predominantly. A couple of thousands of pumps have been in operation successfully in multiple states in India in the agriculture sector.

Need to address cost considerations and lack of sufficient incentives
Despite the solar pump market growing at a good pace, there are certain challenges plaguing companies in the segment. We need to address these challenges one by one so that more players will enter the segment and more innovations and healthy competition can be seen.

Solar pumps have been able to visibly create a positive impact in countries such as Kenya and West Africa. The solar pump industry is still in its growing stage in India. Schemes such as PM KUSUM are likely to give the industry a fillip by incentivising large-scale adoption. However, it is believed that there is scope for improvement and further fine tuning to attract private players into this segment to democratise the product and build innovative solutions.

Additionally, solar pumps are more expensive than its traditional counterparts. Although this seems to be a challenge as there is an initial installation cost as well, it can be more cost-effective through its solutions throughout its lifecycle by consistently performing with minimal maintenance requirements. Solar pumps have a vast potential in a tropical country like India with an abundance of sunlight. The government and private players must work together to address these challenges to prepare the industry for future growth.

Ramaswamy states, “Energy-efficient solar pumping solutions delivers higher water output per Wp of power consumed compared to the lesser efficient ones, though both these pass the test and meet the defined government specifications for a specific motor HP and fixed solar modules capacity. This acts as a disincentive to the manufacturers of high-efficiency pumps investing in cutting-edge technology. Defining the L/Wp and encouraging the suppliers to offer appropriate pump-motor capacity solutions and corresponding solar modules capacity will provide a level playing field for all manufacturers and address the disparity that exists currently.”

Market outlook
With a rejuvenated outlook on renewable energy from the government and private stakeholders in terms of investment and initiatives, the solar pump sector is projected to grow at a compound annual growth rate (CAGR) of over 27 percent during the period 2018-2024. Ramaswamy concludes, “Technological innovation and product democratisation will determine the future of this industry. We also expect the government’s support in this direction to help increase the demand and help solar pumps become a mainstay in the country.”

The solar pump schemes via the flagship government programme PM KUSUM in the agriculture sector and the Jal Jeevan Mission for piped water supply in rural communities are also bound to drive the demand for solar pumps over the next four years.