Solar Water Pumps Market Analysis

Global Solar Water Pump Market Overview

The Solar water pumps market is projected to witness significant growth during the review period, exhibiting a CAGR of 6.98%. The market was estimated to be USD 2843.62 million in 2023 and is expected to reach a value of USD 5,220.5 million by the end of the forecast period (2024-2032).

Solar water pumps are systems that use photovoltaic (PV) panels to convert sunlight into electricity to power a pump to draw water from a source such as groundwater, river, lake or well. These systems are a clean, sustainable, and economical alternative to conventional pumps run on grid electricity or diesel generators. Solar water pumps have several advantages over traditional water pumps powered by fossil fuels or grid electricity. They are more environmentally friendly, as they do not produce any emissions. They are also more reliable, as they are not affected by power outages or fuel shortages. Additionally, solar water pumps can be used in remote areas where there is no access to grid electricity.

The escalating demand for alternative energy sources, driven by the need to reduce dependence on fossil fuels, has led to significant growth in the green energy market. This growth is actively supported by government initiatives, presenting a substantial opportunity for investors in this emerging sector. The government's efforts include tax relief and incentives for the adoption of solar pumps and the installation of solar panels in residential properties. The US Department of Energy (DOE) issues funding opportunities for solar energy systems. The federal solar tax credit, also known as the investment tax credit (ITC), allows homeowners to claim 30% of the cost of their solar energy system as a credit to their federal tax bill. This credit is available to any U.S. homeowner, condo owner, or cooperative housing corporation member who owns a solar panel system. The US Department of Energy provides funding and tax credits for the installation of solar energy systems, including solar water pumps.

The EU aims to increase the share of renewable energy in its energy mix, fostering initiatives that support the adoption of solar water pumps. Government subsidies play a significant role in driving the adoption of solar water pumps, making them a more viable and affordable option for irrigation and water supply purposes. As governments continue to support renewable energy initiatives, solar water pumps are expected to play an increasingly important role in sustainable agricultural practices and rural development.

Countries like the U.S., China, India, U.K., Germany, and Australia have implemented various programs to encourage the switch to solar pumps. These programs include rural electrification initiatives, capital subsidies, income tax rebates, low-interest financing, and other incentives. These incentives are significantly reducing the initial cost barriers of solar water pumps, making them a more attractive option for farmers and rural communities.

The rising adoption of solar pumps presents a significant opportunity for both market participants and solar pump industry developers to tap into the commercial potential of these pumps and enhance the living standards in rural areas. Companies like Shakti Pumps and Bengal Renewables are striving to make their solar pump technology and business models more cost-effective and accessible to smallholder farmers. As the market continues to expand, numerous industry players view this as a promising chance to bring about substantial changes in the market landscape.

For instance, some generic manufacturers operating in the market are offering solar pumps at remarkably low prices, as low as USD 200. In contrast, traditional players in the industry primarily focus on large-scale irrigation products but are now actively working on developing solar water pumps suitable for small-scale irrigation. This shift in focus has garnered attention from farmers, who are increasingly interested in the cross-selling of solar pumps. These factors collectively drive the growth of the market.

Source Secondary Research, Primary Research, MRFR Database, and Analyst Review

Solar Water pump Market Trends

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  Increasing solar pumps in the agriculture sector and improving livelihood

  
  

A nation's GDP is predominantly shaped by several key sectors, with agriculture being a significant contributor. Given the critical role of irrigation in farming, it is expected that the demand for solar water pumping systems will increase alongside higher agricultural investments. The opportunities for solar pumps are poised for growth in the forthcoming years due to the modernization of the agriculture sector and the gradual shift towards sustainable energy sources. Solar energy is converted into electricity by photovoltaic arrays, which is then harnessed to power motor pumps used for drawing water from sources such as open wells, bore wells, streams, ponds, or canals. These solar water pump systems are employed to provide the necessary water for crop irrigation, livestock hydration, and potable drinking water.

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  Increasing Government Subsidies in the form of Financial Incentives

  
  

Solar water pumps have emerged as a prominent application of solar energy, driven by the global shift towards clean renewable energy sources. Governments worldwide have implemented subsidies for solar-powered water pumps to encourage their widespread adoption. In India, the solar water pump market is particularly influenced by such subsidies, which aim to reduce the environmental footprint of conventional water pumps and lessen the reliance on fossil fuels. Indian government initiatives like Pradhan Mantri KisanUrja Suraksha Evam Utthan Mahabhiyan Yojana (PM-KUSUM), CPSU (Government Producers) Scheme - Phase II, and Solar Rooftop Phase II program are actively promoting solar water pump adoption and boosting solar energy generation across the country. Government support has undoubtedly propelled the growth of this market.

Agriculture stands as a pivotal sector, making a substantial contribution to a nation's economic growth. With increased investments in agriculture, there is an expected surge in the demand for solar water pumping systems, primarily driven by the crucial role of irrigation for farmers. The ongoing modernization of the agricultural industry, coupled with a gradual shift toward sustainable energy sources, is opening new prospects for solar pumps in the foreseeable future.

To illustrate, consider the case of Kenya's National Budget announcement on June 11, 2020, which allocated a significant sum of USD 35 million to bolster the community household irrigation sector. This initiative allows individual farmers to double their agricultural yields by harnessing solar pumps, which are powered by the sun and eliminate the need for costly fuel. This represents a positive stride toward enhancing the productivity, resilience, and income of smallholder farmers. Consequently, the cost of investment becomes a driving force behind the adoption of these pump systems.

Moreover, Tata Power Solar Systems, a prominent player in the market, secured a 250MW solar project award from the National Thermal Power Corporation Limited (NTPC) under the Central Public Sector Undertaking (CPSU) scheme. This project aligns with the company's "Make in India" mission and underscores its competitive edge and commitment to quality, establishing its leadership in utility-scale, rooftop solar, and solar pump businesses in the country.

Solar water pump Market Segment Insights

Solar water pump Market by product Type Insights

The Solar water pump Market has been categorized based on product type Submersible pump and Surface pump. Surface pumps hold a substantial market share of 65.0% with a market value of USD 1,742.8 million. It is projected to register a CAGR of 7.06% during the projected timeframe.

Solar water pump Market by Motor Types Insights

Based on Motor types, the Solar water pump market has been segmented into AC and DC pumps. In 2022, the AC Pumps drove the Solar water pump Market by holding a substantial market share of 69.2% with a market value of USD 1,826.8 million. It is projected to register a CAGR of 6.8% during the projected timeframe.

Solar water pump Market by Power rating Insights

Based on Power rating, the Solar water pump market has been segmented into bifurcated into Up to 5 HP, 5 HP – 10 HP, 10 HP – 20 HP and More than 20 HP. In 2022, the up to 5 Hp drove the Solar water pump Market by holding a substantial market share of 31.2% with a market value of USD 826.6 million. It is projected to register a CAGR of 6.8% during the projected timeframe.

Solar water pump Market by phase Insights

Based on Motor types, the Solar water pump market has been segmented into single and three phase. In 2022, the single phase drove the Solar water pump Market by holding a substantial market share of 62.1% with a market value of USD 1,650.0 million. It is projected to register a CAGR of 6.8% during the projected timeframe.

Solar water pump Market by Application Insights

Based on application, the Solar water pump market has been segmented into Agriculture, Water Treatment, and others. In 2022, the Agricultural segment drove the Solar water pump Market by holding a substantial market share of 57.5% with a market value of USD 1510.2 million. It is projected to register a CAGR of 7.1% during the projected timeframe.

Solar water pump Market Regional Insights

By region, the global market is segmented into North America, Europe, Asia Pacific, South America, Middle East & Africa. Among these, the North America emerged as the leading and the fastest-growing segment with a CAGR of 7.15 %.

Solar Sater Pump Key Market Players & Competitive Insights

The competitive landscape of the solar water pump market is influenced by several key players who offer products for various applications. Major market participants, including Shakti Pumps, Waaree Energies Ltd, Bright Solar Limited, LORENTZ, Grundfos, and Crompton, are dedicated to enhancing product capabilities to uphold their brand position. As an example, in June 2020, SunEdison initiated a framework agreement to restructure and transfer its solar business. This restructuring plan aims to separate completed and pending projects, enabling the company to concentrate primarily on residential and small commercial rooftop solar segments.

In the market, technological innovation is a pivotal trend gaining increased popularity. Leading manufacturers of solar pumps are at the forefront of developing advanced technologies, placing a strong emphasis on quality control in compliance with safety regulations. This strategic approach aims to enhance the performance of both solar panels and water pump systems. Distinguished players in the industry are establishing a new standard by not only broadening their product range for higher efficiency but also expanding their market presence to cater more effectively to consumer needs. Their focus extends to maintaining high product standards, efficient supply chain management, and staying attuned to pricing trends, all of which contribute to sustaining their positions in the market.

The Dubai Electricity and Water Authority (DEWA) welcomed the launch of its innovation center and the 800 MW third phase of the Mohammed bin Rashid Al Maktoum solar park. While DEWA's Innovation Center aims to be a global hub for innovation in renewable and clean energy. It will support innovation and creativity in clean and renewable energy, promote sustainability, develop Emirati talent, and strengthen the UAE's competitive advantage in this sector. Trina Solar Co., Ltd. announced that it has signed an agreement with the Yemeni PV company Al Raebi for Trading Co. as an authorized dealer in Yemen. This agreement is a further commitment to Trina Solar's expansion plans and to increase its presence in the Middle East and Africa.

Key Companies in the Solar Water Pump Market includes:

• Shakti Pumps


• Waaree Energies Ltd


• LORENTZ


• Crompton


• Grundfos


• Tata Power Solar


• Surya International


• Bright Solar Limited


• Dankoff Solar

Solar Water Pump Industry Developments

Shakti Pumps Limited, an Indian manufacturer of water pumps and motors, was awarded a patent for a unidirectional solar water pump with a grid-connected power generating system in April 2022. It makes use of panels to ensure optimum performance and generate excess power to feed the grid.

In February 2024, Johnson Controls introduces a commercial heat pump with reduced global warming potential that brings about improved environmental benefits while maintaining its energy efficiency as well as significantly contributing towards sustainability programmes.

In January 2024, Kubura Hassan and her women’s group in Kano get introduced to solar-powered irrigation by HortiNigeria which improves agriculture with clean energy, savings on costs and encourages environmentally sound farming practices.

Kebbi State Government, in January 2024 launched KADAGE in Suru, where it distributed solar and CNG powered water pumps aiming at increasing agricultural productivity as well as enhancing food security through All Year Crop Production initiatives.

New Solar Pump Controllers and Remote Monitoring Units were launched by Gautam Solar in January 2022 for Solar PV systems. The company has developed in-house Variable Frequency Drives (VFDs) for these solar pump controllers which are tuned for 1 – 10 HP of solar pumps (DC / AC & Surface / Submersible).

Grundfos adds SQFlex Large to the range of submersible pumps powered by solar energy available on the market since September 2021. The company expanded its product range throughout Asia and the Pacific countries due to different climatic conditions within this region as well as increased demand for solar energy driven pumps.

Energy Efficiency Services Limited (EESL) had invited bids to set up an aggregate of 317975 numbers of 1-10 HPsolar pumps across India under Component-Bof Kisan Urja Suraksha Evam Utthan Mahaabhiyan (KUSUM) rural solar scheme during January 2021. This program’s Component – B is meant to help farmers in installing standalone solar agriculture pumps, thereby replacing diesel powered pumps.

In May 24 2023 Xylem Inc. a leading global water technology company, announced it has completed its acquisition of Evoqua Water Technologies Corp. (“Evoqua"), a leader in mission-critical water treatment solutions and services, in an all-stock transaction valued at approximately $7.5 billion.

In March 2023, TATA Solar Power and ISS Global signed memorandum of understanding to promote the adoption of clean and sustainable energy solutions in India. The collaboration's objective is to utilize green energy to power all ISS India campuses and introduce TPREL's ecofriendly solutions and products. Furthermore, as part of the collaboration, sustainable lifestyles will be promoted using loT-based home automation products. These products enable users to control and operate electrical devices remotely from anywhere using a mobile app or voice commands, enhancing convenience and energy efficiency.

Solar Water Pump Segmentation

Solar Water Pump by Product Type Outlook (USD Million, 2019-2032)

• Submersible Pump


• Surface Pump

Solar Water Pump by Motor Type Outlook (USD Million, 2019-2032)

• AC Pumps


• DC Pumps

Solar Power by Rating Outlook (USD Million, 2019-2032)

• Up to 5 HP


• 5 HP – 10 HP


• 10 HP – 20 HP


• More than 20 HP

Solar Water Pump by Phase Outlook (USD Million, 2019-2032)

• Single


• Phase

Solar Water Pump by Application (USD Million, 2019-2032)

• Agriculture


• Water Treatment


• Others

Solar Water Pump Regional Outlook

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  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Russia
  
  
  • Spain
  
  
  • Italy
  
  
  • Netherland
  
  
  • Poland
  
  
  • Denmark
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Rest of Asia Pacific
  
  
  
  


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  South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  


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  Middle East & Africa
  
  
  
  • South Africa
  
  
  • GCC Countries
  
  
  • Rest of Middle East & Africa