Delays in Punjab solar subsidy scheme disappoint 450,000 farmers

LAHORE: The promise of relief from soaring energy costs through the Punjab government’s solar tube well scheme is fading for thousands of farmers across the province due to significant delays in its implementation.

Small-scale farmers, holding between one and 25 acres of land, had pinned their hopes on this initiative. The government had announced subsidies — Rs0.5 million for tube wells up to 10kW, Rs0.75m for those up to 15kW, and Rs1m for capacities up to 20kW — offering a significant opportunity to escape the burden of hefty electricity bills and the volatile costs of diesel fuel.

Over 450,000 farmers submitted their applications through the government portal. However, their initial excitement has now turned into disillusionment. Many are left wondering when, or even if, they will receive the promised support. As they continue to struggle with high operational costs, the vision of a cleaner, more affordable energy source remains frustratingly out of reach.

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Further complicating matters are reports suggesting a possible shift in the government’s strategy. Originally, the programme was to be managed through a centralised bidding process overseen by the Water Management Wing of the Punjab Agriculture Department.

However, the responsibility was later transferred to the Punjab Energy Department, which has contributed to the current deadlock.

Farmers are now hearing unconfirmed reports of a significant policy change, with the government allegedly considering abandoning the centralised bidding model in favour of directly disbursing subsidies for agricultural inputs.

While the overarching goal of promoting solar energy in agriculture may still stand, the lack of clarity regarding the implementation mechanism has left farmers uncertain and anxious about the future of the initiative.

Meanwhile, pre-qualified vendors — who underwent a rigorous, months-long bidding process and invested considerable resources — are also expressing deep concern over the delays. Sources indicate that some of these vendors are preparing to pursue legal action, further complicating an already stalled programme.

Published in media, May 3rd, 2025