Wednesday, 3 December 2014

Model Bankable Project on Solar Pumping System (Irrigation with Green Energy)




1. Why Solar Energy

Energy input is the key parameter for holistic development of agriculture sector. Among all the energy inputs, nature of input energy for operating irrigation system changes from time to time. In ancient time animate energy was major contributor for the irrigation development. During the last 35-40 years, mechanical and electrical energy have become essential prime mover for operating irrigation system. 1975-2000 was the golden period of small land holder irrigation in South Asia. Since 1975, the spontaneous boom in private investment in small boreholes and mechanized diesel and electrical pumps and mushrooming irrigation service market have revolutionized irrigation agriculture. Catalytic measures like Government policies supported the pump irrigation, revolution through expansion of institutional credit under minor irrigation, various subsidy schemes on pumps and boring, support to farm electric and electricity subsidy have played major role. Resulting, tremendous changes in utilization pattern of water resources. Ground water exploitation for irrigation was become easy and major source of irrigation. It has adverse impact on water resources, electrical industry and also on the irrigation input cost.

Since 2000, regions ground water economy has began shrinking in response to growing energy squeeze. The energy squeeze is combined outcome of thee factors namely 1) progressive reduction in quantity and quality of  power utilities to agriculture sector as a desperate means to contains farm power subsidies, 2) growing difficulty and rising capital cost acquiring new electrical connection for tubewell, 3) many fold increase in nominal prices of diesel. Hence, real challenge for Indian Agriculture faces today is helping small holder irrigation out of energy squeeze. 

2. What is Solar Pumping System 



A solar photovoltaic (SPV) water pumping system consists of:

1.      Photovoltaic (PV) array : Capacity in the range of 200 Watt to 5 KWp and can be mounted on a suitable structure with a provision of tracking the sun

2.      Motor Pump Set (Surface or submersible) : D.C. Motor Pump Set (with Brushes or Brush less D.C.) OR  A.C. Induction Motor Pump Set with a suitable Inverter

3.      Electronics : Maximum Power Point Tracker (MPPT)- Controls / Protections.

4.      Interconnect Cables and “On-Off” switch.

3. Salient Features of Solar Pumping System

1.      High initial cost of investment (unit cost varies from Rs.1.35 lakh per HP to Rs.1.7 lakh per HP)
2.      Negligible operational cost
3.      Longer operational life 25-30 years
4.      Two point hitch system designed by the local farmer is available, which unable to carry whole panel to field level without folding
5.      Highly Suitable for cash crops and vegetables

4. Available Government’s Support 

I) Government of Uttar Pradesh providing subsidy up to Rs.2 Lakh for 2 HP solar pumping system and farmers’ contribution is Rs.70,000/- Only under RKVY.

II) Government of India providing assistance @40% approved unit cost for different models through credit linked subsidy scheme implemented by NABARD.

5. Economic Returns of State Sponsored Scheme of 2 HP Solar Pumping System

Economics of the solar pumping system is depends on various factors such cropping patterns, nature of the existing irrigation system (own / custom and hiring basis), supplementary irrigation system, assistance available under different schemes, fuel prices, depth of ground water, etc.  so that techno-economic feasibility of the same solar system would be different in different operating conditions. Economic feasibility of the same, therefore, is determined on the basis of below listed assumptions, which are closely prevailing in eastern UP.  

1) Cropping Pattern :  50% area under sugarcane and 50 % area under Wheat and Paddy   
2) Benefits of the solar pumping is taken saving of diesel fuel in respect of farmers’ having their own diesel engine OR 
3) Benefit of the solar pumping is taken saving of custom charges for those farmer, who do not have their own prime motor / Irrigation system.
4) Average discharge of shallow tube wells is taken 12 liters per second
5) Average time of irrigation to cover one ha of land is 16 hour No of hours actually operated by the famers to irrigate crops is considered.



6. Irrigation requirement as per scientific package of practice for the major crops

CROPS
Irrigation Requirements (cm)
Effective Rainfall (25%) cm
NIR (cm)
Per Ha Water Required (cum)
Min
Max
Average
1
2
3
4
5
6
7
Paddy
90
250
170
23
67
6700
Wheat
45
65
55
11
34
3400
Maize
50
80
65
13
37
3700
Sugarcane
150
250
200
38
112
11200
Banana
120
220
170
30
90
9000
Tomato
60
80
70
15
45
4500
Potato
50
70
60
13
37
3700
Cabbage
38
50
44
10
28
2800
Chilly
50
50
50
13
37
3700
(MIN : Minimum, MAX : Maximum, Ha; NIR : Net Irrigation Requirement)

7. No of hours required for irrigation as per the crop requirement and actual numbers of hours actually operated by the farmers 

CROPS
Discharge of a 8-10 HP pump (cum/hr)
NO of hr Required to  operate pump to irrigate per Ha
NO of hr Required to  operate pump to irrigate per acre
Actual NO of Irrigation undertaken by farmers
Actual NO of hr   operation of pump to irrigate per acre


1
8
9
10
11
12

Paddy
43.2
155
63
6
36

Wheat
43.2
79
32
3
18

Maize
43.2
86
35

0

Sugarcane
43.2
259
105
5
30

Banana
43.2
208
84
10
60

Tomato
43.2
104
42



Potato
43.2
86
35



Cabbage
43.2
65
26



Chilly
43.2
86
35



( NO : Number, CUM : cubic meter, Ha : Hectare)

8. Model Cropping Patterns
                                                                                                            ( Amount in Rs.)
Model Area (ha)
Area (ha)
No of IR
Cost of Fuel
Cost hiring
Wheat
1
3
2928
7680
Paddy
1
6
5856
15360
Sugarcane
1
5
4880
12800
TOTAL
2

13664
35840
(IR : Irrigation, HR : Hour)

9. Cost of the Solar pumping system of 2 H.P.

COST OF SOLAR PUMPING SYSTEM
270000
Subsidy under Agriculture Department
200000
Subsidy under NABARD
108000

10. Economic Viability under different conditions 

 A)Famers having their own diesel engine system

Conditions
BC Ratio
IRR (%)
BEP (years)
Remark
Economic Returns ( Without any subsidy)
0.34
3
20
Condition A1
Economic Returns ( With Subsidy of Agriculture Department - RKVY)
1.31
24
5
Condition A2
Economic Returns ( With subsidy of GOVT OF INDIA Via NABARD)
0.56
8
12
Condition A3

B) Famers having no irrigation facility at their own and using on custom and hiring basis

Conditions
BC Ratio
IRR (%)
BEP (years)
Remark
Economic Returns ( Without any subsidy)
0.89
15
8
Condition B1
Economic Returns ( With Subsidy of Agriculture Department  - RKVY)
3.43
>50%
2
Condition B2
Economic Returns ( With subsidy of GOVT OF INDIA Via NABARD)
1.28
28
5
Condition B3
 
Recommendation

1
Solar Pumping System with assistance of 40% of the bench mark cost under JLNSLM is found economically viable for the famers who are using on irrigation system on custom and hiring basis.
2
Solar Pumping System with assistance of Rs.2.0 lakh under RKVY is found economically viable for both the famers who have their own diesel system as well as on using on custom and hiring basis.
3
Solar Pumping System without any subsidy is not economically viable.
4
Solar Pumping System with assistance of 40% of the bench mark cost under JLNSLM is found economically not viable for the famers who have their own diesel system.
5
Horticulture Plantation, Vegetables and Sugarcane crops are found most suitable for solar pumping System
6
For Specific condition/s the techno-economic feasibility of the Solar pumping system can be determined based on this model.  
7
During the lean period the solar panel system can be used for other farm and non farm operations that would be additional benefits.



A)       Famers having their own diesel engine system

Condition A1: Economic Returns ( Without any subsidy)
YEAR
EXPEN
INCOME
NET INCOME
1
270000
13664
-256336
2

13664
13664
3

13664
13664
4

13664
13664
5

13664
13664
6

13664
13664
7

13664
13664
8

13664
13664
9

13664
13664
10

13664
13664
11

13664
13664
12

13664
13664
13

13664
13664
14

13664
13664
15

13664
13664
16

13664
13664
17

13664
13664
18

13664
13664
19

13664
13664
20

13664
13664
21

13664
13664
22

13664
13664
23

13664
13664
24

13664
13664
25

13664
13664
26

13664
13664
27

13664
13664
28

13664
13664
29

13664
13664
30

13664
13664

270000
409920

PW of Cost at 15% DC
270000
PW of Benefit at 15% DC
91500
BC Ratio
0.34
IRR
3%
Break Even Duration (Years)
20

Condition A2: Economic Returns ( With Subsidy of Agriculture Deptt. - RKVY)

YEAR
EXPEN
INCOME
NET INCOME
1
70000
13664
-56336
2

13664
13664
3

13664
13664
4

13664
13664
5

13664
13664
6

13664
13664
7

13664
13664
8

13664
13664
9

13664
13664
10

13664
13664
11

13664
13664
12

13664
13664
13

13664
13664
14

13664
13664
15

13664
13664
16

13664
13664
17

13664
13664
18

13664
13664
19

13664
13664
20

13664
13664
21

13664
13664
22

13664
13664
23

13664
13664
24

13664
13664
25

13664
13664
26

13664
13664
27

13664
13664
28

13664
13664
29

13664
13664
30

13664
13664

70000
409920





PW of Cost at 15% DC
70000
PW of Benefit at 15% DC
91500
BC Ratio
1.31
IRR
24%
Break Even Duration (Years)
5

Condition A3 : Economic Returns ( With subsidy of GOVT OF INDIA Via NABARD)

YEAR
EXPEN
INCOME
NET INCOME
1
162000
13664
-148336
2

13664
13664
3

13664
13664
4

13664
13664
5

13664
13664
6

13664
13664
7

13664
13664
8

13664
13664
9

13664
13664
10

13664
13664
11

13664
13664
12

13664
13664
13

13664
13664
14

13664
13664
15

13664
13664
16

13664
13664
17

13664
13664
18

13664
13664
19

13664
13664
20

13664
13664
21

13664
13664
22

13664
13664
23

13664
13664
24

13664
13664
25

13664
13664
26

13664
13664
27

13664
13664
28

13664
13664
29

13664
13664
30

13664
13664

162000
409920





PW of Cost at 15% DC
162000
PW of Benefit at 15% DC
91500
BC Ratio
0.56
IRR
8%
Break Even Duration (Years)
12

B)Famers having no irrigation facility at their own and using on custom and hiring basis

Condition B1: Economic Returns ( Without any subsidy)

YEAR
EXPEN
INCOME
NET INCOME
1
270000
35840
-234160
2

35840
35840
3

35840
35840
4

35840
35840
5

35840
35840
6

35840
35840
7

35840
35840
8

35840
35840
9

35840
35840
10

35840
35840
11

35840
35840
12

35840
35840
13

35840
35840
14

35840
35840
15

35840
35840
16

35840
35840
17

35840
35840
18

35840
35840
19

35840
35840
20

35840
35840
21

35840
35840
22

35840
35840
23

35840
35840
24

35840
35840
25

35840
35840
26

35840
35840
27

35840
35840
28

35840
35840
29

35840
35840
30

35840
35840

270000
1075200

PW of Cost at 15% DC
270000
PW of Benefit at 15% DC
239999
BC Ratio
0.89
IRR
15%
Break Even Duration (Years)
8

Condition B2: Economic Returns ( With Subsidy of Agriculture Deptt. - RKVY)

YEAR
EXPEN
INCOME
NET INCOME
1
70000
35840
-34160
2

35840
35840
3

35840
35840
4

35840
35840
5

35840
35840
6

35840
35840
7

35840
35840
8

35840
35840
9

35840
35840
10

35840
35840
11

35840
35840
12

35840
35840
13

35840
35840
14

35840
35840
15

35840
35840
16

35840
35840
17

35840
35840
18

35840
35840
19

35840
35840
20

35840
35840
21

35840
35840
22

35840
35840
23

35840
35840
24

35840
35840
25

35840
35840
26

35840
35840
27

35840
35840
28

35840
35840
29

35840
35840
30

35840
35840

70000
1075200





PW of Cost at 15% DC
70000
PW of Benefit at 15% DC
239999
BC Ratio
3.43
IRR
105%
Break Even Duration (Years)
2

Condition B3 : Economic Returns ( With subsidy of GOVT OF INDIA Via NABARD)

YEAR
EXPEN
INCOME
NET INCOME
1
162000
35840
-126160
2

35840
35840
3

35840
35840
4

35840
35840
5

35840
35840
6

35840
35840
7

35840
35840
8

35840
35840
9

35840
35840
10

35840
35840
11

35840
35840
12

35840
35840
13

35840
35840
14

35840
35840
15

35840
35840
16

35840
35840
17

35840
35840
18

35840
35840
19

35840
35840
20

35840
35840
21

35840
35840
22

35840
35840
23

35840
35840
24

35840
35840
25

35840
35840
26

35840
35840
27

35840
35840
28

35840
35840
29

35840
35840
30

35840
35840

162000
1075200





PW of Cost at 15% DC
162000
PW of Benefit at 15% DC
239999
BC Ratio
1.48
IRR
28%
Break Even Duration (Years)
5