Solar photovoltaic water pumping in India: A financial evaluation

A simple framework for the financial performance evaluation of a solar photovoltaic (SPV) water pump has been presented. The unit cost of water delivered by such a pump has been estimated. The monetary benefits accrued to the end user have also been quantified on the basis of the amount of diesel or electricity saved. The Net Present Value and Internal Rate of Return of investment in an SPV water pump have also been estimated. The effect of fuel price escalation on the financial performance indices has been evaluated along with estimation of the break-even prices of diesel and electricity. The effects of financial incentives such as capital subsidy, accelerated depreciation-related income tax benefits and provision of a low interest loan on the break-even prices of diesel and electricity have also been studied. Results of some numerical calculations for a 1.8 kWp SPV pump are briefly presented and discussed. © Ambient Press Limited 2005.