Targeted finance and the adoption of solar irrigation by smallholder and women farmers

Abstract

Off-grid solar energy offers tremendous potential for low-carbon poverty alleviation, but its application remains largely confined to low-power home systems with limited economic significance. Solar irrigation pumps (SIPs), in contrast, can help expand access to irrigation, a central economic development and climate resilience strategy, without increases in emissions. However, like similar technologies, its diffusion remains low unless heavily subsidized, particularly by smallholder farmers, and among them, women. Here, we report findings from a field experiment (RCT) in 93 rural administrative units in Nepal that provides novel evidence on the barriers to adoption and how they can be overcome. Financial models that reduce upfront costs through loans that are normally unavailable to smallholders, double demand for SIPs and are repaid in 90 % of cases. Additional targeted incentives disseminated through social mobilisers effectively engage women farmers, leading them to constitute more than half of eventual SIP adopters.