Growth Gateway: Solar irrigation investment case (summary)
Published 17 September 2025
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Irrigation systems distribute water across crops to increase yields (potentially by 50% to 100%). Due to low electricity grid connectivity, smallholders usually resort to traditional gravity-powered, sprinkler, or drip irrigation systems that rely on rainfall or manual/diesel pumps. Solar pump systems utilise electricity, and are powered by solar energy, making them an off-grid irrigation solution.
Solar irrigation is emerging as a vital solution to Africa’s food insecurity and climate challenges, with only 6% of arable land currently irrigated and 650 million people lacking sufficient food. Smallholder farmers, who make up 80% of the agricultural sector, often lack access to grid electricity and affordable irrigation systems.
Solar-powered irrigation offers a sustainable, off-grid alternative that can significantly increase crop yields, reduce greenhouse gas emissions, and improve resilience to climate-induced droughts and rainfall variability. Drip irrigation, in particular, is highlighted for its high efficiency and suitability for small-scale farming.
The market for solar irrigation in Africa is currently valued at £24 million and is expected to grow at a 22% CAGR to £64 million by 2027, with a full potential of £2.4 billion. This growth is driven by declining costs of solar components, increasing food demand, and strong support from governments and development organisations.
The main markets include Nigeria, Ethiopia, Kenya, and Tanzania, where large smallholder populations and low grid access create strong demand. Financing models like pay-as-you-go (PAYGO) are essential to overcome affordability barriers, with 85% of current sales using such models.
Success in this sector hinges on last-mile distribution, farmer education, credit risk management, and concessional financing. Investors can engage across the value chain, from product design and manufacturing to distribution and after-sales service.
Recent investments by companies like SunCulture and Solar Now reflect growing interest, though commercial capital remains cautious without blended finance. For UK investors, opportunities lie in supporting scalable business models, leveraging public-private partnerships, and targeting high-impact regions to drive both returns and development outcomes.