Page 88 - Azerbaijan State University of Economics

Sathish Kumar Murugan, Ganeshkumar D.Rede, Teena Lakshmi Baskaran, Prity Kumari,
Alina Cristina Nuta: Determinants of Solar Water Pumping System Adoption Among
Farmers: A Factor
Analysis Approach

Extraction Method: Principal Component Analysis., Rotation Method: Varimax with

Kaiser Normalization., a. Rotation converged in 3 iterations
Considering Table 5, it is evident that the first factor has been loaded onto two
variables: government schemes and subsidies that make solar pumps affordable
(0.791) and Banks and cooperatives offer credit facilities for solar pump installation
(0.716). These two variables are grouped under one factor titled "Institutional
Support". The first factor accounts for 22.443% of the variance in explaining the
adoption of solar water pumping systems by farmers in West Bengal. A second factor
included two variables: Solar pumps reduce the recurring cost of diesel or electricity
for irrigation (0.829), and Farmers perceive solar pumps as a financially sustainable
solution (0.524). These two variables were grouped under the category of "Economic
Benefits." Consequently, this second factor accounted for 20.734% of the variance in
factors contributing to the adoption of solar water pumping systems by farmers in
West Bengal. A third factor included two variables: Solar pumps are easy to operate
and require less technical knowledge (0.826), and the availability of after-sales service
influences adoption decisions (0.654). These two variables were grouped under the
category of "Technical Benefits." Consequently, this third factor accounted for
19.306% of the variance in factors contributing to the adoption of solar water pumping
systems by farmers in West Bengal. A study found that Institutional Support
contributed the most to the adoption of solar water pumping systems, accounting for
a 22.443 percent variance, followed by Economic Benefits, which accounted for a
20.734 percent variance, and Technical Benefits, which accounted for a 19.306
percent variance. A significant factor contributing to the adoption of solar water
pumping systems was institutional support, as it was the primary reason farmers
adopted these systems, driven by subsidies and the PM-KUSUM scheme. Banks and
financial institutions played a key role in supporting farmers by offering low-interest
loans for the adoption of solar water pumping systems. In terms of economic benefits,
these systems were perceived as highly beneficial due to their relatively low
installation and maintenance costs, coupled with the flexibility of loan repayment.
Compared to diesel and electric pumps, solar pumps have a significantly higher cost-
effectiveness over the long run than diesel and electric pumps used by farmers.
Technically, the PM-KUSUM scheme facilitates ease of operation and after-sales
service, further encouraging adoption. A similar finding reported in Gujarat (Sathish
Kumar et al., 2024) found that institutional support, economic benefits, and technical
conveyance supported the adoption of solar water pumping systems by farmers in
West Bengal.

88