Agriculture forms a large part of the economy for most countries but is facing pressures from dwindling water, increasing energy costs and climate change. There is an effective solution to this problem, and that is solar energy, which allows the farmer to decrease his reliance on fossil fuels and lower his operating costs. Yet, governments’ support for the widespread adoption of solar energy among farmers has often been strong. Across the planet, targeted initiatives have spearheaded this switch, sending farmers into effect and supporting sustainability.
Addressing energy challenges in agriculture
Modern agriculture is dependent on energy as input for irrigation systems, machinery and storage facilities. Diesel or grid electricity is an expensive and environmentally unsustainable traditional energy source. Solar power is attractive when compared with other options due to its cost-effectiveness and low environmental impact.
However, the solar infrastructure investment required for the technology at its start outweighs the benefits for farmers in developing regions. This is where the government must intervene to fill in this gap through subsidies, loans or good policies.
Subsidies and financial support
Financial incentives are one of the most powerful ways that governments encourage solar adoption. Subsidies for solar pumps, panels and microgrid installation make the technology available to farmers. Similar schemes are India’s Pradhan Mantri – Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM), where up to 60% subsidy is offered for solar-powered irrigation systems. Apart from reducing energy costs for farmers, this program also stimulates the sale of excess power into the grid to bring additional income.
Grants and loans are available through the Rural Energy for America Program (REAP) in the United States to support such projects as solar installations on farms. Other countries’ similar programs show the way financial aid can be targeted to speed up adoption.
Policy frameworks and tax benefits
In addition, governments employ policy frameworks to promote an environment suitable for solar adoption. Land use (clear guidelines), grid connectivity (no bureaucratic hurdles) and power purchase agreements (clear guidelines) allow farmers to install and use solar systems without any government red tape.
It also reduces the financial burden by providing further incentives. There are many countries with tax credits or exemptions to invest in solar energy. In the U.S., one example of a policy that allows farmers to deduct a percentage of the cost of installing solar systems from their federal taxes is the Investment Tax Credit (ITC).
These policies not only promote adoption but also the government’s commitment to renewable energy indicates to the private sector to invest in rural solar projects.
Encouraging agrivoltaics
It is a growth trend that has gained government support through the practice of agrivoltaics (combining solar energy production with agriculture on the same land). Here, the commitment to providing farmers with dual benefits from solar energy will result in the generation of income while they remain able to carry out their agricultural activities.
In search of agrivoltaics’s potential, governments from Japan, Germany, and India are funding research and pilot projects. They offer grants for agrivoltaic installations and provide farmers with an opportunity to diversify their income streams and boost income from agricultural land.
Capacity building and awareness programmes
Technical and confidence in the benefits are needed for adopting solar energy. Training programs, workshops, and demonstrations are highly contributed by governments in educating farmers.
In Kenya, the government partners with NGOs that train farmers in operating and maintaining solar-powered irrigation systems. These initiatives ensure that the farmers also can have maximum benefits from solar technology with reduced dependence on external service providers.
Challenges and the road ahead
Despite significant progress, challenges remain. High upfront costs and limited access to financing in remote parts of the country, along with an insufficient grid infrastructure, all contribute to the laggard adoption of renewables. These barriers must be addressed by the government via the expansion of financial inclusion, simplified subsidy disbursement process, and improved rural connectivity.
Indeed, public-private partnerships can also create a spark for innovation and scale in solar solutions for agriculture. There are collaboration opportunities with technology providers, financial institutions and civil society organisations around the affordability and accessibility of solar systems.
Conclusion
The policies of the government are of importance in household solar energy adoption, especially by farmers. They remove barriers to entry through subsidies, tax benefits, supportive regulations and even awareness programs; in effect, they make it an ecosystem for sustainable agricultural practices.
Farming with solar energy empowers farmers, but it also strengthens the government’s efforts to create energy security and environmental sustainability. The only mix of policies and initiatives can bring solar energy to revolutionise agriculture and the future: it will be brighter and greener for everyone.
The author is VP Sales, Oorjan Cleantech
