Photovoltaic (PV) Pumping in India

Introduction

In India, Photovoltaic (PV) pumping is most commonly known as SPV pumping.

Generell information about Photovoltaic (PV) pumping (costs, drinking water and irrigation covered)

The Technology

A SPV system consits of the following parts:

• PV array
• Motor pump set
• Interface electronics
• Connecting cables & switches
• Support structure & tracking system
• Pipes, etc.

Types of Pumps used:

• surface mounted centrifugal pump set,
• submersible pump set,
• floating pump set,
• Submersible pump set,
• Any other type of motor-pump set

Suitable applications of PV pumps especially with certain irrigation methods:

• drip irrigation, where water is distributed by a grid of perforated placti tubes
• hose-basin irrigation, where water is collected in a basin and distributed by hoses

Advantages of PV systems for irrigation in remote areas:

• proximity to the pumps (less stress on distribution network and reduced T&D losses and costs for utilities, if grid is available)
• reliable, silent, clean and long life-span
• relaitvly little maintenance and easy to operate

Economics in India

Total cost (before subsidy) for installation and commissioning of SPV water pump system varies from Rs. 190,000 to 290,000 or even Rs. 450,000/-.

Capital cost of a 1.8 kWp solar PV pump is about Rs. 0.3 million. The payback period of solar PV pump (without subsidy) replacing a diesel pump is about 9 years (at a cost of diesel is Rs. 32/litre).

Purohit (2007) evaluated the financial attractiveness of different renewable energy technologies for irrigation water pumping in India. He calculated the following unit costs for water for SVP pumping systems, diesel engine pump sets and electric moor pump sets:

Subsidiesed SPV pump sets are competitive with diesel operated systems. Yet, they are not competitive with grid electricity.

Technology	Capacity	Unit	Unit cost for water (without capital subsidy) Rs./m³	unit cost for water (with capital subsidy for S) Rs./m³
1. SPV pump
PV pump (surface)	900	Wp	0.85	0.37
PV pump (surface)	1800	Wp	0.83	0.34
PV pump (submersible)	1200	Wp	1.25	0.77
PV pump (submersible)	1680	Wp	1.13	0.65
PV pump (submersible)	1800	Wp	1.17	0.69
2. elecric motor pump
(Surface)	5	hp	0.38	0.38
(Surface)	10	hp	0.30	0.30
(Submersible)	5	hp	0.39	0.39
(Submersible)	10	hp	0.31	0.31
3. Diesel engine pump set
(Surface)	5	hp	1.13	1.13
(Submersible)	10	hp	1.02	1.02

FAQ on SPV pumping Indian Development

FAQ on SPV pumping by a supplier (acres to be irrigated, water head, etc.)

Research and Pilot Schemes

Ministry of Non-conventional Energy Sources (MNES) Scheme

Pilot programme by the Indian Government, managed by IREDA, as preparation for a full scale programme with the goal to disseminate 50,000 pumps in 5 years (not achieved).

Aims: commerzialisation, technology upgrade, system cost reduction, large scale deployment and prodcution, facilitate marketing infrastructure

• 1993 - 1994 demonstration programme: 500 PV-driven electric pumps (other sources state 1000) (10 different systems were used in various combinations, throughout all of India)
• full scale programme: cumulative achievments by 2007:  7,068 systems installed
• from 2004 onwards only for community drinking water projects

Demo programme Structure

• MNES provided FA and interest subsidy for user loan
• IREDA provided FA received from MNES & user loan from its own resources
• Intrmediaries procure pumping systems for installation at user's site and reimbursement from tom IREDA
• Manufaturer/Supplier - supplied and maintain the system to the intermediary

• End Users (elligibility according to MNRE guidelines) received the pump for installation at his site at concessional price.

• Promotion campaign by IREDA & MNRE
• Training programmes by manufacturers/IREDA /MNRE
• Testing &Certification by Solar Energy Centre/MNRE approved regional test centers

• 29 states covered
• cooperation with 9 vendors

Punjab Energy Development Agenvy (PEDA) Model - example of one approach by a state under this programme

• systems: 1800 W, 2hp DC motor pump for irrigation of 5 - 8 acres
• Site identification by SNAs/manufacturers/suppliers according to MNRE guidelines - based on water table and land holding, allocations in cluserters to facilitate service and maintenance.
• Maintenance - a 5 year maintenance contract by suppliers was required
• 2 phases of 500 SPV each
• ==> following PEDAs success, Haryana, Uttar Pradesh (also drinking water), Rajasthan and Tripure (and more?) have taken up projects

Karnataka Renewable Energy Development (KREDL)

• 700 pumps disseminated by 2006 (part of national programme)
• plans for CDM project - unclear if carried out (very small panel of only 80Wp)

New Pump Developed by IIT and BSES in January 2012, installed in Delhi - capacity of 25,000 l in 7 hours of sunlight.

The Market

Product

In India 35% of SVP pumps are used for drinking water, 65% for agricultural purposes.

Two sizes of SPV pumps (0.9 and 1.8 kW_p) are most commonly commercially available in India. The financial incentives provided by government are available for purchasing only one pump. Therefore, in the initial phase of dissemination it was assumed that a farmer will install either of the two pumps depending upon his need and affordability. Yet, the smaller system was found inadquate for most crops, the larger system with 2hp DV motor was mostly used

Potential

Several different estimates on the potential of SPV pumps exist:

Starting form the total connected load for agricultural pump sets, which will be around 100 GW 2022, a huge market lies open for SPV pumps to be tackled. At the same time, heavily subsidies electricity for agricultural purposes (expected to be 50 USD billion in 2021-2022, if trend continues) is a major cost burden for the utilities and hampers to dissemination of SPV pumps. Still, KPMG estimates that around 16 GW could be provided through PV-driven pumps, if supported adequately by MNRE before SPV pumping will reach grid parity and will conquer the market eventually.

HWWI estimated the CDM potential of SPV pumping in India. According to their sources, there are reportedly more than 15 million electric and 6 million diesel irrigation pumpsets in operation. The potential number of SPV pumps is estimated at 70 million, with extending irrigation support to untapped markets.

Kumara and Tara (2004) have lesser expectations: Potential number of SPV pumps are estimated at 6.03 million (out of which 4.29 million are of capacity of 1.8 kW_p and the balance 1.74 million of capacity of 0.9 kW_p). With 1.06 million SPV pumps the state of Maharastra in India has highest utilization potential closely followed by Madhya Pradesh (0.99 million). Since the percentage share of marginal and small farmers is very high in the states of Kerala and West Bengal, in spite of large area with ground water table of less than 10 m in these states, the estimated potential of SPV pumps is very low as compared to the total number of farmers. Moreover, due to larger number of smaller land holdings in Kerala and West Bengal, the potential number of 0.9 kW_p SPV pumps is much higher than that of 1.8 kW_p SPV pumps. In other states it is just the reverse as the land holding are larger.

Despite the differences in estimates, the bottom line stays the same - the technical potential of SPV pumping in India is huge and the market has bearly started to develop..

Numbers of systems installed

Only figures from the national programme are available. Up to 2007, more than 7000 systems have been installed through the programme supported by MNRE/IREDA. The growth rate of installations slowed down significantly (probably as in the later stages only community drinking water projects were supported). More current figures are not available, neither are figures on systems which were installed outside of the scheme.

2001-2005: annual growth rate of 14%

2005-2006: annual growth rate of 6% (366 systems)

Moreover, there is no information the numbers of systems actually in operation.

Actors

NGOs and Donors

• Greenpeace (in Bihar): PV pumping systems for agricultural irrigation in Bihar (1,500-2,000 l of water/ hour for 6-8 hours on a sunny day)

Manufacturers and Suppliers

There are a range of companies offering solar PV pumps, MNRE cooperated in its programme with 9 suppliers, amongst others:

• Tata BP Solar water pumps: Case study Chattisgarh - Chattisgarh State Renewable Energy Development Agency (CREDA) (several districts of Chattisgarh) 2006-2007: 62 systems installed (3 surface pumps, 48 mono submersible pumps, 11 others)
• Photon Energy Systems - 2 systems (900 W and 1800 W repsectivly).
• Icomm Tele Limited
• Sungrace
• Premier Solar Systems Pvt Ltd
• Vimal Electronics
• Udhaya Seminconductors Ltd.
• VRG Energy - youtube video

Solar Water Pumping Companies in India (75 total)

• List of Solar Water Pumping System Manufacturers
• List of Solar Water Pumping Retail Companies

Market Support Mechanisms

• MNRE/IREDA's solar water pumping programme for agricultural irrigation and drinking water supply

systems available: 200 W-3000 W (capacitoy of motor pump 0.5 hp to 2 hp), subsidized costs varies between Rs. 190,000 - 270,000, depending on supplier and model. Subsidy and soft loans are provided (see above for the structure), which have been adjusted over the years.

Period	Subsidy for panel Rs./Wp	maxmimum subsidy	soft loan for unsubsidized system cost through IREDA
1993-1994 (pilot)	170	70% of system cost	5% p.a., 10 year repayment, 1 year moratorium
2001-2002	110	= Rs. 0.25 million or 90% of system cost	5% p.a.
2003-2005	75	= Rs. 0.2 million	5% p.a.
2005-present (since 2004 only for community drinking water projects)	30	= Rs. 50,000	5% p.a.

The minimum loan amount for a project is Rs. 10 lakhs. additionally, a 2.5% soft loan was made available through financial intermediaries. => still investment cost gap of Rs. 0.1 mio per system

• State agencies solar water pumping programme - capital subsidy of first Rs. 135/Wp, later reduced to Rs. 100/Wp, anticipating strong cost decreases of SPV pumps.

Others

NABARD has one bankable project scheme for minor irrigation, supporting pump sets for farmers. Solar PV pumps are not considered especially under this scheme, however.

Remaining Bottlenecks for Large-scale Application

Lessons Learnt and recommendations

• Training of farmers/users is essential
• marketing and awareness training are a must throughout the supply chain

Financing

• high initial investment is still mayor barrier - The unit cost is substantially higher for PV pumps as compared to the corresponding values for diesel or electric pumps, if no susidy is available.

• partnerships between key actors incl. rural financial institutions, product and service suppliers, consumer groups etc.) are essential
• commerzialization is essential for sustainable market growth, yet subsidies or other means of government support are needed till competitive prices are reached
• lack of awareness among and interest in lending institutions and micro credit institutions
• access to affordable financing is crucial for rural customers - lacking availability of micro-credits ==> facilitate micro financing
• repayment obilgations to financial institions are difficult to meet
• encourage esco-model through incentives
• incentivise usage/energy savings instead of capital subsidy
• CDM as potential financing mechanism has been looked at before - research paper by HWWI (2005)

Product

• cost effectivenes, high reliability and quality assurance necessary
• further R&D and technology development needed - efficiency improvements already achieved: solar cell 10% to 16%, pumps 30% to 40-45%
• standardization and quality control need to be improved
• availability of spare parts, blocked pump foot valves and broken modules are the most common technical issues
• large variation in products available on the market (both cost and quality wise)
• misuse of the PV system for lighting and TV seems to be irresistable
• danger of theft (esp. lease financed cases)
• lack of ownership and system protection when system is not owned
• System design is important -Matching PV system, ground water pump and water distribution system, Power demand: required discharge flow, total head and pump,efficiency (depending on type of pump and depth of available water source

Government support

• needs to be more market oriented
• should be less bureaucratic with lesser documentation and streamlined procedures to obtain incentives - more user friendly
• other options of financial incentive (e.g. accelerated depreciation, micro-finance, ...) should be considered
• multiple use of systems should be permitted

Sales & Maintenance Network

• intermediaries need to achieve an attractive share
• infrastructure for after sales service needs to be established until the last mile, service networks not in place due to high costs for manufacturers
• network for market promotion needs to be build
• longterm maintenance is costly
• Durability and availability of products and spare parts (e.g. switches) – it is not always possible to find the most suitable PV arrays, motors and pumps to match both site conditions and each other

Further Reading

• GIZ INTERNAL: DMS folder containing additional documents on PV pumping (documents also available upon request from GTZ-HERA)
• Product overview  and cases of market leader Grundfos
• Energypedia on Drinking water supply
• Indian Blog on SVP pumps - collection of information and discussion about the information
• Research paper on CDM potentail by HWWI (2005)
• ISDTRD (2003) SPV drip irrigation systems scope and limitations p. 266-270