This paper presents the results of a field study undertaken all over the Punjab, Pakistan, to evaluate the socio-economic and climatic impact of photovoltaic-operated high-efficiency irrigation systems (HEIS), i.e., drip and sprinkler irrigation systems. Nearly half of the rural population relies on agriculture for a living, and the recent energy crisis has had a negative impact on rural communities. Farmers’ reliance on fossil fuels for the operation of irrigation systems has increased exponentially, resulting in the high costs of agricultural production. Primary data regarding on-farm agriculture and irrigation practices used in this study were collected through an intensive on-farm survey, while secondary data were taken from published reports and statistics. The results of the current investigation show that the installation of PV systems has resulted in the increased adoption of high-efficiency irrigation systems, a reduction in the high operational costs incurred on account of old diesel-powered pumping systems (with an annual saving of 6.6 million liters of diesel), a 100% increase in farmer’s income, a reduction of 17,622 tons of CO2 emissions per annum, and 41% savings in water. The unit cost of PV-powered HEIS was found to be 0.1219 USD/kWh, which was 4% and 66% less than subsidized electricity cost and diesel cost, respectively.