In collaboration with the World Bank, the government of Uganda has launched a subsidy program to promote solar pump adoption for small-scale irrigation. This initiative aims to improve climate resilience and accelerate agricultural commercialization by providing farmers with access to affordable solar pumps for irrigation.
The Solar Pump Subsidy Program: Costs and Challenges
Uganda is facing significant challenges due to climate change — particularly in agriculture. Less than 2% of farms in the country use irrigation for crop production. In response, the government — in collaboration with the World Bank — has launched a subsidy program to promote solar pump adoption for small-scale irrigation. The program aims to enhance climate resilience in Uganda's agri-food systems and accelerate agricultural commercialization.
The subsidy program requires farmers to contribute 25% of the solar pump system’s cost. This has been a critical step in providing affordable irrigation options. However, the program has not been without its challenges. As of December 2024, about 4,000 solar pumps have been installed out of 80,000 applications from 66 of Uganda’s 146 districts. Despite the growing interest in the program, several key barriers remain.
One of the main challenges for farmers is the cost-sharing requirement for the solar pumps. The co-financing for a solar-powered irrigation system ranges from 4 million Ugandan shillings (about $1,100) to 14 million Ugandan shillings (around $3,800). This presents a significant financial hurdle, especially for poorer farmers who cannot afford these amounts.
Many farmers turn to family savings, micro-credit, or bank loans to meet the co-financing requirements, but these options are not always available — particularly for those without access to financial resources. Additionally, many poorer farmers do not have land with access to reliable water sources, such as streams, lakes, or wells, further hindering their ability to participate in the program.
Broader Benefits Beyond Crop Irrigation
The solar pump subsidy program in Uganda — initially focused on crop production — has found broader uses. Survey data shows farmers also use the pumps for livestock watering and household needs, thereby improving water security and returns on investment.
Unlike South Asia’s initiatives with oversized pumps for selling excess water, Uganda’s solar pumps are sized for individual farm needs. This limits water-sharing opportunities, which reduces extra income and broader benefits for neighboring farmers.
A major challenge is the delay in receiving the pumps. Some farmers get their pumps within two to three months, while others wait up to seven months due to differences in district capacity and logistical issues in remote areas. These delays are problematic for farmers who took loans to cover the pump cost, as they cannot generate income on time.
Besides delays, there is a shortage of solar pump repair services in rural Uganda. Many farmers abandon their pumps due to lack of expertise and spare parts. This threatens the long-term sustainability of solar pumps, so training programs for technicians should be prioritized to meet the rising demand.
A Path Forward for Solar Pump Adoption
Despite these challenges, Uganda’s solar pump program is making strides toward improving agricultural productivity and water security for rural farmers. As the program continues to expand, lessons learned from the current phase will be vital for refining the business model and ensuring its sustainability.
Key areas for improvement include addressing the water source requirements, ensuring equitable access to subsidies, providing reliable repair services, and fostering stronger relationships between pump providers and farmers.
Uganda’s solar pump program offers a promising solution to agricultural challenges, particularly with climate change. Despite barriers like high co-financing, procurement delays, and repair service issues, it has significant potential to improve productivity and water security. By addressing these challenges, Uganda can create a sustainable solar-powered irrigation model for the region. Insights from this program will help refine the model and ensure solar pumps contribute to Uganda’s long-term agricultural development.