The Payback Tool

Publicado: 01 Febrero 2021
Última edición: 31 Mayo 2021

The Payback Tool allows for a comparative assessment between income and three different irrigation pumping options. Information required for using this tool includes investment and operational costs for the different pumping systems, anticipated income from agricultural production, and basic economic conditions (e.g. inflation rate). Even when the profitability of the farming enterprise is confirmed, however, this does not automatically imply that an investment into an SPIS is the most sensible choice. This is especially true if other pumping technologies are readily available on the market. A Diesel or Grid-connected eletric pump might be more feasible where water pumping is only required for a limited time per year. The INVEST – Payback Tool considers and compares solar powered irrigation systems with other pumping technologies. Basic data is collected from technology suppliers and the payback period against the farm profit and the different technologies is automatically calculated. 

Classifications

Categorías
Comunicación, divulgación, y construcción de conciencia
Educación, entrenamiento y otras actividades de desarrollo de capacidades
Intervenciones técnicas e infraestructura
Escala de aplicación
Local
Global
Fase de la solución
Implementación

Factores favorables

Availability of data on the project/SPIS functional lifetime, capital expenditures / initial capital investment for solar and alternative options, market prices, operating and maintenance costs, macroeconomic variables, tax policies; further advice of financial experts 

Lecciónes aprendidas

All calculations need to be based on prices which can be determined but also on estimates and assumptions. They will have to consider the current situation and future scenarios and should compare options for alternative pumping systems (electric, diesel). Different scenarios should be elaborated before taking a decision.