Abstract
Groundwater extraction through subsidized solar power has flared up a number of issues in water resource planning in water deficient regions. Previous studies and research suggests ‘buy back solutions’ to check indiscriminate exploitation of ground water reserves; however, the present study is an attempt to put forward a theoretical incentive framework analysing the condition in Rajasthan state to justify why farmers would not opt to sell excess electricity generated to the grid rather choose to sell solar irrigation. The study validates the inappropriateness of simple buy back solution to check excessive groundwater extraction and concludes that one-way approach in policy implementation regarding groundwater extraction can be a misnomer and region-specific policies should be adopted looking to the water deficiency or abundance in the region.
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