Harvesting the Sun: Scaling Up Grid-Integrated Solar Irrigation Pumps in Bangladesh

Agriculture in rural Bangladesh relies on carbon-heavy diesel and unreliable grid electricity. In addition, this dependence on diesel exposes farmers to unpredictable fuel costs, unreliable energy supply during peak irrigation periods, and greenhouse gas emissions.

Diesel emissions make it difficult to reduce the environmental impacts of agricultural production while unreliable energy supply during peak seasons disrupts watering schedules and reduces crop yields. At the same time, unpredictable fuel costs increase production expenses, trapping low-income smallholders in a cycle of poverty.

Transitioning to renewable energy also faced an uphill climb due to high upfront costs and low initial returns.

The Bangladesh Rural Electrification Board implemented an innovative dual-purpose grid integration model, which enables solar irrigation systems to serve two functions throughout the year. During the cropping season, the systems provide clean energy for irrigation. During the lean season, when irrigation is not required, surplus electricity is exported to the national grid through a net-metering system, allowing farmers to generate additional income while contributing renewable energy to the grid.

The project was funded through an ADB loan, grants from the Climate Investment Funds under the Scaling Up Renewable Energy Program and the Clean Energy Fund administered by ADB, and investment from the Bangladesh Rural Electrification Board.

The Solar Photovoltaic Pumping System for Agricultural Irrigation project introduced the following business model innovations and strategic operational adjustments to respond to the challenges and improve farmer acceptance:

Financial and business model innovations

• Reduced downpayment: To address the barrier of high upfront capital costs for end-users, the project lowered the required initial downpayment, making the systems more accessible.
• Equity support: The project provided financial support mechanisms and equity assistance to improve the financial viability and return on investment for farmers.

Technical integration and income diversification

• Grid integration (net metering): The project integrated the solar pumps with the national grid, allowing farmers to use solar power for irrigation during the crop season and export surplus electricity back to the grid during non-irrigation periods—turning the system into a source of positive net income. While doing so, the technical design restricted bidirectionality to avoid misutilization of grid during peak season.
• Policy operationalization: The initiative actively supported the development and execution of the Guidelines for the Grid Integration of Solar Irrigation Pumps (2020), creating a formal legal and technical framework for rural grid-connected solar systems.

Inclusive capacity building

• Gender mainstreaming: To counter limited technical awareness and traditional social norms, the project executed a Gender Action Plan. This included targeted technical awareness campaigns across 10 districts and demand-based energy livelihoods training, where women made up 54% of the trainees.

The project deployed solar photovoltaic-powered irrigation systems across 32 Palli Bidyut Samities, consumer-owned, nonprofit rural electric cooperatives that distribute electricity in rural Bangladesh.

It installed 641 solar irrigation pumps and completed grid integration at 357 sites, with integration continuing at the remaining locations.

The project enabled farmers to stabilize their operating expenses and generate a positive net income by selling surplus electricity back to the national grid.

It also strengthened the Bangladesh Rural Electrification Board’s institutional capability, gaining technical expertise in grid-integrated solar engineering outside of its typical electricity distribution mandate. The project also operationalized the national 2020 grid-integration guidelines and successfully executed a Gender Action Plan, employing over 1,100 women as billing assistants.

Despite its successes, the project fell short of its target of installing 2,000 solar irrigation pumps, completing 641 installations. The experience highlighted the importance of aligning project design with market conditions, institutional responsibilities, and implementation risks.

Implementation was constrained by high upfront capital costs, low demand for solar alternatives due to near-universal grid access (98%) and subsidized tariff, global material cost increases, and contractor credit issues. External shocks, including the coronavirus disease pandemic (2020–2021) and the Russia–Ukraine war, increased global material costs, resulting in a 32.8% contract variation request and prolonged government approval processes.

At the same time, strict banking regulations and foreign currency exchange rate fluctuations caused contractor financial distress, preventing the opening of Letters of Credit for vital imports. Land acquisition issues, irrigation committee clearance delays, and weak initial technical awareness further slowed implementation.

The project also demonstrated the value of adaptability in response to changing conditions. Shifting from standalone solar irrigation systems to a grid-integrated net-metering model improved the financial viability of the systems by allowing farmers to generate income from surplus electricity during non-irrigation periods. The project further institutionalized this approach by supporting the operationalization of the Guidelines for the Grid Integration of Solar Irrigation Pumps (2020), creating a legal and technical framework for future grid-connected solar irrigation systems.

While it achieved milestones in grid integration and gender mainstreaming, its failure to meet the target reveals essential structural lessons. These experiences highlight four key lessons for future renewable energy initiatives:

• Align institutional responsibilities. Because irrigation falls outside the Bangladesh Rural Electrification Board's core mandate of electricity distribution, closer coordination with agricultural agencies such as the Ministry of Agriculture from the outset can help streamline site readiness and field implementation.
• Align project design with market conditions. Near-universal grid access and subsidized electricity tariffs reduced demand for standalone solar irrigation systems. Future projects can benefit from assessing market conditions and user demand early in the design phase and refining business models before scaling up.
• Adopt phased implementation. Rather than relying on ambitious, high-volume deployment targets, phased implementation allows business models and implementation approaches to be tested, refined, and adapted as conditions change.
• Strengthen financial and procurement risk management. Building flexibility into procurement, incorporating contract variation mechanisms, and conducting stronger contractor due diligence can help reduce implementation delays associated with inflation, foreign exchange fluctuations, and contractor financing constraints.

Asian Development Bank. Bangladesh: Power System Efficiency Improvement Project.