Introduction: India suffered the worst blackouts in history this year, which left over 600 million people without power. The lights are back on, for now, but the crisis is evidence of deep problems in a sector teetering on the edge of bankruptcy for the second time in a decade. The deeper problem, however, stems from decades of populist pricing and inefficiency that have pushed losses at state utilities to an estimated $10 billion in the year that ended in March 2012, according to the Planning Commission, a top government advisory body. Politicians currying favour with the farm vote have granted free or heavily subsidized power for agriculture, while idealists have fought to bring affordable light to the poor.
Challenges with Diesel to Solar Conversion: If farmers get free electricity, they have no incentive to switch. For diesel pumpsets, there may be an incentive but subsidies are limited for a large scale switch from diesel to SPV pumpset. The key barrier to the large-scale dissemination of solar PV water pumps is the high capital cost incurred by farmers compared to the much lower capital cost of conventional pumps. SPV The cost of 2-HP solar water pump is Rs 4 lakh (8,000 USD) while a 5-HP pump costs Rs 10 lakh(18,000 USD). Keep reading