Understanding Farmers' Policy Preferences for Solar-Powered Irrigation Systems in Karnataka, India: A Choice Experiment Approach

Abstract

Solar-Powered Irrigation Systems (SPIS) are an important component of India's effort towards sustainable energy transition and are promoted with financial support under the PM-KUSUM program. In spite of the promise and the policy push, adoption of SPIS has been low. In this paper, we use a Discrete Choice Experiment (DCE) to evaluate the policy attributes in the promotion of SPIS. We selected five attributes of SPIS: cost of the pump; terms of the loan; grid connection; service provision (repair services); and multiple uses of energy (generated from solar panels) with different levels for each attribute. D-efficient, non-zero prior design was used to design the choice combinations used in the study. The data was collected from 500 farmers randomly chosen from 31 villages across Mysore district, Karnataka, India, and analysed using the random parameter logit model. For a nuanced interpretation and contextualisation of the results, we conducted follow-up qualitative interviews. The results highlight that farmer preferences, indicated by the highest part worth, are for a loan with a longer repayment period (WTP of US$ 1905), followed by guaranteed service provision for 10 years (WTP of US$ 1498). Given that SPIS is a new technology with high initial investment, easing liquidity constraints and assuring farmers of guaranteed repair services are strong incentives to adopt it. These findings can be incorporated into existing policies so that they align well with farmers' preferences.