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Enhancing Small Farmers’ Livelihoods through Productive Use of Renewable Energy Technologies

Executive Summary 

Smallholder farmers in rural and underserved regions often face multiple constraints that limit their productivity and income, including lack of access to reliable energy. This proposal aims to enhance the livelihoods of small farmers through the adoption and productive use of renewable energy technologies (RETs) such as solar-powered irrigation systems, biomass dryers, and cold storage units.

The intervention will focus on introducing context-appropriate renewable energy solutions that support agricultural productivity, reduce post-harvest losses, and enable value addition. By providing technical training, financial access mechanisms (such as micro-leasing and cooperatives), and market linkage support, the program seeks to build sustainable energy-agriculture ecosystems.

Targeting 1,500 smallholder farmers across selected districts, the initiative will improve productivity, reduce dependence on diesel-based systems, and create new income-generating opportunities. Expected outcomes include increased crop yields, higher farm incomes, improved resilience to climate change, and enhanced gender inclusion through the involvement of women in energy and farming cooperatives.

This project aligns with Sustainable Development Goals (SDGs) 1 (No Poverty), 2 (Zero Hunger), 7 (Affordable and Clean Energy), and 13 (Climate Action), offering a scalable model for sustainable rural development.

Problem Statement

Rural smallholder farmers in developing regions often operate in energy-poor environments. Most rely on manual labor or costly fossil-fuel systems for irrigation, processing, and storage. As a result, they experience low productivity, high post-harvest losses, and limited market access. Energy constraints further exacerbate the vulnerability of these farmers to climate change and price volatility.

Traditional diesel-powered pumps and threshers are not only expensive to run but also contribute to environmental degradation. Moreover, the lack of cold storage facilities results in substantial spoilage, especially for perishable produce. Women farmers face additional barriers, including limited access to finance, training, and energy resources, further widening the gender productivity gap.

Despite growing availability of renewable energy technologies (RETs), adoption among smallholders remains low due to high upfront costs, lack of technical knowledge, inadequate after-sales service, and weak institutional support. This creates a vicious cycle where energy poverty reinforces agricultural poverty.

By enabling the productive use of RETs, this project proposes to shift the paradigm from subsistence farming to income-generating agri-enterprises. It seeks to address systemic barriers to adoption and ensure that the benefits of clean energy reach the most marginalized groups in rural economies.

Objectives

  • General Objective:
    • To enhance the livelihoods of smallholder farmers through the productive use of renewable energy technologies (RETs) in agriculture by integrating clean energy solutions across the agricultural value chain, thereby improving productivity, reducing losses, increasing incomes, and fostering inclusive and sustainable rural development.
  • Specific Objectives:
    • To improve agricultural productivity using solar-powered irrigation and processing equipment:
      • This objective aims to increase crop yields and farming efficiency by introducing solar-powered technologies such as water pumps, threshers, grinders, and milling machines. These technologies will reduce dependence on erratic rainfall and manual labor while enabling year-round cultivation and mechanized processing, ultimately improving output and reducing physical burden on farmers.
    • To reduce post-harvest losses through renewable energy-based cold storage and drying technologies:
      • A significant portion of agricultural produce is lost after harvest due to lack of proper storage and preservation facilities. This objective focuses on deploying solar-powered cold rooms and dryers that enable farmers to extend the shelf-life of perishable goods, maintain quality, and reduce spoilage. These technologies will support farmers in minimizing losses and increasing their share of marketable produce.
    • To increase farmers’ income through value addition and improved market access:
      • By incorporating renewable energy-powered tools for food processing and preservation, farmers can engage in value-added activities such as packaging, drying, and preserving fruits and vegetables. In addition, support will be provided to connect farmers with better markets, cooperatives, and buyers. These efforts will lead to higher prices for products and improved profitability for smallholder farmers.
    • To build farmers’ technical capacity for operating and maintaining RETs:
      • Training programs will be designed to equip farmers with the necessary technical skills to effectively use, manage, and maintain renewable energy systems. This includes hands-on sessions on troubleshooting, basic repairs, and safety protocols. Empowering farmers with this knowledge will ensure the sustainability and long-term functionality of installed RETs.
    • To promote women’s inclusion in renewable energy and farming cooperatives:
      • This objective seeks to ensure that women are active participants and beneficiaries in both the energy and agriculture sectors. Women will be encouraged to take leadership roles in cooperatives, receive targeted training, and access resources that enable them to manage RET-based enterprises. Gender-responsive strategies will be integrated throughout the project to address specific barriers faced by women.
    • To establish community-based financing and ownership models for sustainability:
      • Sustainability of RET investments will be supported through the development of locally managed financing schemes, such as savings groups, cooperative funds, or pay-as-you-go models. These community-based structures will facilitate shared ownership, ensure collective responsibility for maintenance, and enable reinvestment in future energy needs. This model will help build long-term resilience and economic independence for farming communities.

Methodology

  • Site Selection and Baseline Assessment
    • The project will be implemented in three agriculturally active districts with high solar potential and poor energy access. A baseline survey will be conducted to assess energy use, farm income, post-harvest losses, gender roles, and market access.
  • Technology Deployment
    • Based on need assessments, RETs will be selected and deployed:

      • Solar-powered irrigation pumps: Replacing diesel pumps to reduce costs and water wastage.

      • Solar dryers: For drying fruits, vegetables, and grains to reduce spoilage.

      • Cold storage units: Solar-powered or hybrid cold rooms for perishable produce.

      • Biogas digesters: For cooking and organic fertilizer production from livestock waste.

  •  Capacity Building
    • Training will be delivered on:

      • RET operation and maintenance

      • Climate-smart agriculture practices

      • Business and financial literacy

      • Cooperative governance and leadership (with a focus on women and youth)

  • Financial Access and Ownership Models
    • To overcome capital barriers:

      • Micro-leasing models will be introduced via local MFIs

      • Farmer cooperatives will be formed to collectively own and operate RETs

      • Pay-as-you-go (PAYG) systems will be piloted for scalability

  • Market Linkages
    • Farmers will be linked with agro-processors, retailers, and e-commerce platforms. Cold chains and storage will be coordinated to reduce spoilage and boost farmgate prices.
  • Gender and Social Inclusion
    • At least 40% of direct beneficiaries will be women. Women-led energy cooperatives and agro-enterprises will be prioritized. Childcare support will be offered during training sessions.

Monitoring, Evaluation, and Learning (MEL)

  • A participatory MEL framework will track outputs, outcomes, and impact indicators. Key tools include:
    • Baseline and Endline Surveys:
      • Comprehensive baseline and endline surveys will be conducted to assess the project’s impact over time. The baseline survey will collect detailed data on key indicators such as agricultural productivity, income levels, energy usage, gender participation, and access to services prior to the intervention. This data will serve as a reference point for measuring progress. At the project’s conclusion, the endline survey will replicate these assessments to capture changes attributable to the project. Comparative analysis between the two sets of data will provide quantifiable evidence of outcomes and inform future program design and scalability.
    • Focus Group Discussions:
      • Focus group discussions (FGDs) will be conducted regularly with various stakeholder groups, including women farmers, cooperative members, local leaders, and youth. These discussions will provide qualitative insights into the community’s experiences, perceptions, and feedback regarding the project’s implementation. FGDs will help identify challenges, success stories, and areas needing adjustment. By incorporating the voices of beneficiaries, the project ensures that its approach remains community-driven and responsive to local needs, thereby enhancing relevance and sustainability.
    • Mobile-Based Monitoring Apps:
      • The project will leverage mobile-based monitoring applications to collect real-time data from the field, improving efficiency and transparency. These apps will be used by field officers and cooperative leaders to record key metrics such as RET functionality, training attendance, crop performance, and enterprise development. The digitized data will be automatically uploaded to a central database, enabling project managers to track progress, address issues promptly, and make evidence-based decisions. This technology-driven approach will also empower local stakeholders to actively participate in monitoring and reporting.
    • Quarterly Learning Workshops:
      • Quarterly learning workshops will serve as a platform for knowledge sharing, reflection, and continuous improvement. These workshops will bring together project staff, beneficiaries, local authorities, and partner organizations to review progress, share lessons learned, and discuss innovations or adaptations. They will foster collaboration, enhance stakeholder engagement, and ensure that best practices are documented and disseminated. These sessions will also help refine strategies in response to field realities, ensuring that the project remains adaptive and impact-oriented.

Expected Outcomes

  • Short-Term Outcomes:
    • In the initial phase of the project, capacity-building efforts will focus on equipping 1,500 farmers—both men and women—with the technical skills needed to operate and maintain Renewable Energy Technologies (RETs). Training sessions will cover areas such as solar-powered irrigation systems, biogas digesters, solar dryers, and cold storage units, ensuring that farmers can independently manage and troubleshoot their energy systems. Simultaneously, the project will oversee the installation of 300 fully operational RETs across targeted communities, including solar water pumps, solar dryers, cold rooms, and biogas units. These technologies will be strategically deployed to support various stages of the agricultural value chain, from production to storage and processing. In addition, 20 energy-agriculture cooperatives will be established, bringing together farmers to share resources, coordinate use of RETs, and enhance collective bargaining power. These cooperatives will serve as platforms for knowledge exchange, peer support, and economic collaboration.
  • Medium-Term Outcomes:
    • As RETs become embedded in agricultural operations and farmers gain experience with their use, the project expects to see tangible productivity and economic benefits. With access to clean, reliable energy, farmers will be able to irrigate more effectively, process crops more efficiently, and reduce spoilage—resulting in a projected 30% increase in crop yields and a 40% reduction in post-harvest losses. These improvements will directly contribute to a 25% increase in average farmer incomes, enhancing livelihoods and food security. Furthermore, the project will support the launch of 50 women-led agri-energy enterprises, promoting female entrepreneurship in a traditionally male-dominated space. These businesses may include services such as crop drying, food processing, composting with biogas slurry, or retailing solar equipment—demonstrating how renewable energy can open new economic pathways for rural women.
  • Long-Term Impacts:
    • Over the long term, the integration of renewable energy into agricultural systems will significantly enhance the resilience of rural communities to climate variability. By reducing reliance on rain-fed agriculture and providing clean energy alternatives to fossil fuels, communities will be better equipped to cope with droughts, erratic weather patterns, and energy insecurity. This shift will also contribute to a broader environmental benefit by lowering greenhouse gas emissions associated with traditional agricultural practices. Beyond the environmental gains, the project will offer a scalable and replicable model for integrated rural development, demonstrating how clean energy and agriculture can be synergized for sustainable impact. Importantly, the project will foster greater gender equality by positioning women as leaders and innovators in both the energy and agriculture sectors—challenging norms and reshaping rural economies to be more inclusive and equitable.

Budget Estimate 

  • Baseline Survey & Assessments – XXXXX

    • Conduct baseline surveys in 3 project districts

    • Hire external consultants for data collection and analysis

    • Procure tools and materials (questionnaires, tablets, etc.)

    • Cover travel and accommodation for field teams

    • Perform gender and energy needs assessments

    • Organize stakeholder consultation workshops

  • Technology Procurement – XXXXX

    • Purchase 150 solar-powered irrigation pumps

    • Procure 50 solar dryers for post-harvest processing

    • Purchase 30 solar/hybrid cold storage units

    • Procure 70 biogas digesters for energy and compost

    • Include spare parts and essential accessories

    • Arrange transportation and delivery to project sites

    • Cover warranty and initial technical support

  • Installation & Maintenance – XXXXX

    • Hire technicians for installation of RETs

    • Conduct on-site system testing and commissioning

    • Provide usage and safety manuals to users

    • Train local technicians for maintenance

    • Offer one-year after-sales service and repair

  • Capacity Building & Training – XXXXX

    • Develop training modules on RETs and agriculture

    • Conduct hands-on training sessions for farmers and technicians

    • Deliver workshops on cooperative management and financial literacy

    • Provide materials (manuals, toolkits, handouts)

    • Cover travel, venue, and facilitation expenses

  • Cooperative Formation & Support – XXXXX

    • Facilitate formation of 20 farmer/energy cooperatives

    • Assist with legal registration and documentation

    • Train cooperative members in governance and management

    • Provide startup kits (books, ledgers, templates)

    • Offer mentoring and advisory services

  • Financial Models Development – XXXXX

    • Design micro-leasing and PAYG financing models

    • Partner with local MFIs and cooperatives for implementation

    • Develop digital repayment tracking tools or apps

    • Conduct awareness sessions for farmers

    • Cover consultancy and legal support for financial structuring

  • MEL (Monitoring, Evaluation, and Learning) Activities – XXXXX

    • Develop MEL framework and indicators

    • Conduct baseline, midline, and endline evaluations

    • Use mobile data collection and dashboards for monitoring

    • Organize quarterly review and learning workshops

    • Hire external evaluators for final impact assessment

  • Project Staff & Operations – XXXXX

    • Recruit and pay salaries for project team (manager, coordinator, trainers)

    • Cover office operational costs (utilities, rent, supplies)

    • Provide transportation and field allowances

    • Procure ICT tools (laptops, internet, mobile phones)

    • Cover communication, reporting, and logistics

  • Contingencies (5%) – XXXXX

    • Set aside funds for unforeseen costs

    • Cover cost inflation, currency fluctuations, or emergency repairs

    • Provide financial buffer for implementation risks

  • Total Estimated Budget – XXXXX

Monitoring and Evaluation

  •  Framework
    • A comprehensive MEL framework will track:

    • Input indicators: Number of RETs installed, number of trainings conducted

    • Output indicators: Number of farmers reached, quantity of crops processed/stored

    • Outcome indicators: Changes in yield, income, post-harvest losses

    • Impact indicators: Livelihood improvements, GHG reduction, gender equity

  • Tools
    • Digital dashboards for real-time monitoring

    • Annual outcome surveys

    • Quarterly stakeholder reviews

    • Beneficiary feedback via SMS or mobile apps

  • Learning and Adaptation
    • Findings will inform adaptive management. Success stories and lessons learned will be documented and disseminated.
  • External Evaluation
    • Mid-term and endline evaluations will be conducted by independent experts to assess effectiveness and provide recommendations.

Conclusion 

The productive use of renewable energy in agriculture represents a transformative opportunity to improve rural livelihoods, ensure food security, and address climate change. By targeting smallholder farmers—especially women—this proposal presents a replicable, community-driven model for sustainable rural development.

The integration of solar and biogas technologies into the agricultural value chain will enable farmers to irrigate, process, store, and transport their produce more efficiently and profitably. Through strong community institutions, financial access mechanisms, and inclusive capacity-building, the project will ensure long-term impact and scale.

We invite donors, development partners, and government agencies to support this initiative and unlock the full potential of clean energy for agricultural transformation.