The study finds that solar-powered groundwater irrigation is a financially viable energy solution across most regions of Ghana. However, the high initial investment cost of solar pumps will require innovative financing tools, such as asset-based finance, to increase smallholder farmers’ access to them. Moreover, the cost-effectiveness of solar pumps declines when diesel prices decline, enhancing the attractiveness of diesel pumps, which also have a lower initial capital outlay. Given the high volatility in diesel prices, solar pumps can help farmers hedge against diesel price increases and help them decouple, at least in part, from joint fuel-food price spikes. While this assessment considered groundwater suitability, more in-depth assessment of irrigation development is warranted to support a national solar road map.
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