FINANCIAL ANALYSIS OF SOLAR POWERED PUMPING SYSTEM FOR IRRIGATION IN TAMIL NADU

M. ANJUGAM¹*, R. MAHENDIRAN^2
1Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
²Department of Renewable Energy Engineering, Tamil Nadu Agricultural University, Coimbatore, 641003 Tamil Nadu, India
* Corresponding Author : manjuecon70@gmail.com

Received : 28-10-2020     Accepted : 12-11-2020     Published : 15-11-2020
Volume : 12     Issue : 21       Pages : 10326 - 10329
Int J Agr Sci 12.21 (2020):10326-10329

Keywords : Solar Powered Pumps, Irrigation, Financial Analysis, Life Cycle Cost Analysis
Conflict of Interest : None declared
Acknowledgements/Funding : Authors are thankful to Government of Tamil Nadu for financial assistance by funding through TNAU Core University Research Project Phase II to carry out this research. Authors are also thankful to Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
Author Contribution : All authors equally contributed

The study aimed to evaluate the financial feasibility of solar powered water pumping system for irrigation in Tamil Nadu. It covers 220 solar pump beneficiaries spread across five agro climatic zones. LCC was lower for solar pumping system (Rs.3.44 lakhs) than Electric pumps (6.77 lakhs) and diesel pumps (Rs.13.72 lakhs) and it was found to be the most efficient system than diesel and electric pump system due to its low maintenance cost and zero energy cost. By replacing the diesel pumps with solar pumping system, net present value was positive, benefit cost ratio was greater than one at 10% and 12% discount rate and IRR was found to be 14% which is more than the opportunity cost. With the subsidy component, the solar pumping system was found to be financially feasible. Based on the results of the study, it is suggested that bankers may be encouraged to promote innovative financial models to provide loan for solar pumping system to reduce the burden of the government in terms of subsidy.

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