Difference between revisions of "SPIS Toolbox - Credit Policy: Analyze Potential"
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− | = Credit Policy: Analyze Potential = | + | {{SPIS Banner}} |
− | Today, solar-powered irrigation is a technically mature and reliable option and an alternative to conventional irrigation approaches. When analyzing options for the development of credit policies for SPIS, the following aspects should be considered: | + | |
+ | === '''<span style="color:#879637;">Credit Policy: Analyze Potential</span>''' === | ||
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+ | Today, solar-powered irrigation is a technically mature and reliable option and an alternative to conventional irrigation approaches. When analyzing options for the development of credit policies for SPIS, the following aspects should be considered: <br/> | ||
+ | |||
'''SPIS is likely to be a feasible option in a region if:''' | '''SPIS is likely to be a feasible option in a region if:''' | ||
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*producers aim at specialized markets using environmental friendly technology (focusing on ecological production, which could give scope for premium pricing); | *producers aim at specialized markets using environmental friendly technology (focusing on ecological production, which could give scope for premium pricing); | ||
*technology distributors and system integrators available in the region; | *technology distributors and system integrators available in the region; | ||
− | *water is available and managed adequately so as to prevent | + | *water is available and managed adequately so as to prevent groundwater depletion in the long run. |
'''However, compared to conventional pumping and irrigation methods, PV-based pumping solutions have:''' | '''However, compared to conventional pumping and irrigation methods, PV-based pumping solutions have:''' | ||
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*higher credit risk. | *higher credit risk. | ||
− | == Outcome / Product == | + | === '''<span style="color:#879637;">Outcome/Product</span>''' === |
*Study on potential of financing SPIS and recommendations for financial service provider. | *Study on potential of financing SPIS and recommendations for financial service provider. | ||
− | == Data Requirements == | + | === '''<span style="color:#879637;">Data Requirements</span>''' === |
*Profile end customers (cropping patterns, irrigation techniques, pumping systems, market); | *Profile end customers (cropping patterns, irrigation techniques, pumping systems, market); | ||
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*Environmental impact assessment (long term perspective). | *Environmental impact assessment (long term perspective). | ||
− | == People / Stakeholders == | + | === '''<span style="color:#879637;">People/Stakeholders</span>''' === |
− | *Management of financial | + | *Management of financial service providers; |
*Market analysts/consultants; | *Market analysts/consultants; | ||
*Research and training institutions; | *Research and training institutions; | ||
*Public entities promoting or/and subsidizing SPIS initiatives; | *Public entities promoting or/and subsidizing SPIS initiatives; | ||
− | *Donors refinancing solar- | + | *Donors refinancing solar-powered initiatives; |
*Associations of producers / potential borrowers; | *Associations of producers / potential borrowers; | ||
*Technology providers; | *Technology providers; | ||
*Service providers. | *Service providers. | ||
− | == Important Issues == | + | === '''<span style="color:#879637;">Important Issues</span>''' === |
*Solar-powered irrigation technology is mature, reliable and systems costs have decreased. | *Solar-powered irrigation technology is mature, reliable and systems costs have decreased. | ||
*SPIS generally require higher investment cost than other irrigation system, but operation costs are lower. | *SPIS generally require higher investment cost than other irrigation system, but operation costs are lower. | ||
− | + | {{SPIS Reference}} | |
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Revision as of 16:08, 26 May 2017
Introduction
The Toolbox on Solar Powered Irrigation Systems (SPIS) is designed to enable advisors, service providers and practitioners in the field of solar irrigation to provide broad hands-on guidance to end-users, policy-makers and financiers. Risks related to system efficiency, financial viability and the unsustainable use of water resources can thus be minimized. The Toolbox comprises informative modules supplemented with user-friendly software tools (calculations sheets, checklists, guidelines). read more
Modules and tools touch upon:
- assessing the water requirements,
- comparing the financial viability,
- determining farm profitability and payback of investment in SPIS,
- sustainably design and maintain a SPIS,
- highlight critical workmanship quality aspects,
- and many more.
Credit Policy: Analyze Potential
Today, solar-powered irrigation is a technically mature and reliable option and an alternative to conventional irrigation approaches. When analyzing options for the development of credit policies for SPIS, the following aspects should be considered:
SPIS is likely to be a feasible option in a region if:
- energy provision for farming is a constraint (availability or cost of fuel, reliability of grid connection);
- an intensification of agricultural production is envisaged;
- producers are market-oriented and not working on subsistence level;
- producers are at least medium sized or organized in small holder groups;
- subsidized refinancing options for financial operators are available;
- grant schemes or subsidies are available to borrowers (producer);
- producers aim at specialized markets using environmental friendly technology (focusing on ecological production, which could give scope for premium pricing);
- technology distributors and system integrators available in the region;
- water is available and managed adequately so as to prevent groundwater depletion in the long run.
However, compared to conventional pumping and irrigation methods, PV-based pumping solutions have:
- a comparatively high initial capital investment requirement;
- longer repayment periods or/and significantly higher repayment rates;
- higher credit risk.
Outcome/Product
- Study on potential of financing SPIS and recommendations for financial service provider.
Data Requirements
- Profile end customers (cropping patterns, irrigation techniques, pumping systems, market);
- Current offer of loan products available for potential SPIS customer;
- Water and energy provision regime in region;
- Support/advice structures and subsidy schemes (refinancing) available for the region;
- Environmental impact assessment (long term perspective).
People/Stakeholders
- Management of financial service providers;
- Market analysts/consultants;
- Research and training institutions;
- Public entities promoting or/and subsidizing SPIS initiatives;
- Donors refinancing solar-powered initiatives;
- Associations of producers / potential borrowers;
- Technology providers;
- Service providers.
Important Issues
- Solar-powered irrigation technology is mature, reliable and systems costs have decreased.
- SPIS generally require higher investment cost than other irrigation system, but operation costs are lower.