Difference between revisions of "SPIS Toolbox - Credit Policy: Analyze Potential"
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| − | + | {{Spis Invest}} | |
| − | = | + | {| cellpadding="1" |
| − | </ | + | |- |
| − | < | + | | {{Back to SPIS Toolbox 2}} |
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| + | | {{Back to Finance}} | ||
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| + | | {{Next Chapter}}[[SPIS_Toolbox_-_Credit_Policy:_Risk_Analysis|►Go to the Next Chapter]]</span></span> | ||
| + | |} | ||
| − | 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;">2. 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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*grant schemes or subsidies are available to borrowers (producer); | *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); | *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 are 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:''' | ||
*a comparatively high initial capital investment requirement; | *a comparatively high initial capital investment requirement; | ||
| − | *longer repayment periods or/and significantly higher repayment rates; | + | *longer repayment periods or/and significantly higher repayment rates in case of single user; for a community based model, the payback period is reduced; |
*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 of end customers (cropping patterns, irrigation techniques, pumping systems, other available pumping alternatives, market); |
| − | *Current | + | *Current loan products available for potential SPIS customer; |
*Water and energy provision regime in region; | *Water and energy provision regime in region; | ||
*Support/advice structures and subsidy schemes (refinancing) available for the region; | *Support/advice structures and subsidy schemes (refinancing) available for the region; | ||
*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 | + | *Public entities promoting and/or subsidizing SPIS initiatives; |
| − | *Donors refinancing solar- | + | *Donors refinancing solar-powered initiatives; |
*Associations of producers / potential borrowers; | *Associations of producers / potential borrowers; | ||
| − | *Technology | + | *Technology and service providers. |
| − | |||
| − | == Important | + | ==== '''<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 | + | *SPIS generally require higher investment than other irrigation systems, but operational costs are lower. |
| + | {{SPIS Reference}} | ||
| − | + | {| cellpadding="1" | |
| − | [[ | + | |- |
| − | + | | {{Back to SPIS Toolbox 2}} | |
| + | | | ||
| + | | {{Back to Finance}} | ||
| + | | | ||
| + | | {{Next Chapter}}[[SPIS_Toolbox_-_Credit_Policy:_Risk_Analysis|►Go to the Next Chapter]]</span></span> | ||
| + | |} | ||
Latest revision as of 19:30, 21 July 2020
| ►Back to the Start Page | ►Back to the Module Page | ►Go to the Next Chapter |
2. 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 are 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 in case of single user; for a community based model, the payback period is reduced;
- higher credit risk.
Outcome/Product
- Study on potential of financing SPIS and recommendations for financial service provider.
Data Requirements
- Profile of end customers (cropping patterns, irrigation techniques, pumping systems, other available pumping alternatives, market);
- Current 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 and/or subsidizing SPIS initiatives;
- Donors refinancing solar-powered initiatives;
- Associations of producers / potential borrowers;
- Technology and service providers.
Important Issues
- Solar-powered irrigation technology is mature, reliable and systems costs have decreased.
- SPIS generally require higher investment than other irrigation systems, but operational costs are lower.
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