Solar water pump (swp) in India "let's make it in India"

“Market Potential for Solar Water Pumping System and Cost Benefit Analysis of Diesel vs. Solar Pump”
Submitted By- Kevin Kovadia (AM0712)
Internal Guide- Dr. Mercy Samuel
External Guide- Mr. Nilesh Arora
MBA in Technology Management, Faculty of Management, CEPT University, Ahmedabad - 380009 www.cept.ac.in June 2014

CEPT/ MTM/ AM0712/ Kevin Kovadia/ kkovadia@gmail.com
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CERTIFICATE
This is to certify that the thesis titled “Market Potential for Solar Water Pumping System and Cost Benefit Analysis of Diesel vs. Solar Pump “has been submitted by Kevin Kovadia towards partial fulfillment of the requirements for the award of MBA in Technology Management with specialization in Operations and Project Management. This is a bonafide work of the student and has not been submitted to any other university for award of any Degree/Diploma.
Dr. /Prof. ____________
Chairman/Chairperson,
Dissertation Committee 2012-14
Sign._______________
Internal Guide
Dr. Mercy Samuel,
Associate Professor,
Faculty of Management,
CEPT University
Sign._______________
External Guide
Mr. Nilesh Arora,
Partner,
ADDVALUE Consulting Inc.
www.avci-lean.com

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UNDERTAKING
I, Kevin Kovadia, the author of the thesis titled “Market Potential for Solar Water Pumping System and Cost Benefit Analysis of Diesel vs. Solar Pump”, hereby declare that this is an independent work of mine, carried out towards partial fulfillment of the requirements for the award of MBA Degree in Technology Management with specialization in Operations and Project Management at Faculty of Management, CEPT University, Ahmedabad. This work has not been submitted to any other institution for the award of any Degree/Diploma.
June 2014 Name: Kevin Kovadia
Place: Ahmedabad Roll No: AM0712

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ACKNOWLEDGEMENT
Many people have contributed to this research work. First and foremost, I express my sincerest gratitude to my internal guide, Dr. Mercy Samuel, Associate Professor, Faculty of Management, CEPT University. She has provided continuous support to my research work. I sincerely thank her for her patience, motivation, enthusiasm and immense knowledge.
I convey my sincerest gratitude to Professor Mr. Nilesh Arora, Partner - Director, ADDVALUE Consulting Inc. His guidance has helped me in all the time of research and writing of the research report. I could not imagine anyone else as a better advisor and mentor for my research thesis other than him. Furthermore my earnest thanks to Dr. Gayatri Doctor and Prof. Shreekant Iyenger, who shared their knowledge during the entire course.
I convey my special thanks to all the interviewees without whom this research work could not be termed as a research thesis. I also thank the solar water pump manufacturers from whom I got details about farmers using solar water pump. Their patience and valuable time devoted to my research work are highly respected.
I also acknowledge the support & encouragement of my friends and colleagues throughout the course of my work. Last but not the least; I convey my heartfelt thanks to my family for their unwavering support and patience during the course of my thesis work. Lastly, I offer my regards to all of those who supported me in all respect during the completion of my thesis.

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ABBREVIATION
SWP
Solar Water Pump MNRE Ministry of New and Renewable Energy PVP
Photo Voltaic Pump
PV
Photovoltaic AC Alternate Current
DC
Direct Current
JNNSM
Jawaharlal Nehru National Solar Mission
RKVY
Rashtriya Krishi Vikas Yojana
GDP
Gross domestic product GHG
Greenhouse gas JGS
Jyotirgram Scheme

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TABLE OF CONTENTS
1 Introduction.............................................................................................. 10
1.1 Indian Pump Industry Overview ........................................................... 11 1.2 Pump Market in India .......................................................................... 12
1.3 Agriculture in India .............................................................................. 12
1.4 Solar Water Pump .............................................................................. 14 1.5 Why Solar .......................................................................................... 16
1.6 Why SWP? ........................................................................................ 17 1.7 Market Potential ................................................................................. 19
1.8 Cost–benefit analysis (CBA) ................................................................ 19
1.9 Research Objective ............................................................................ 20
2 Literature review ...................................................................................... 21
2.1 Electricity Consumption in Agriculture sector ........................................ 22
2.2 Water Resources in Gujarat ................................................................ 23
2.3 Solar Power as substitute of Diesel ...................................................... 23
2.4 The off-grid system ............................................................................. 26
2.5 Solar Water Pump .............................................................................. 26
2.6 Government Subsidy for Solar Water Pump ......................................... 28
2.7 Market Potential of SWP ..................................................................... 31
3 Research Methodology ............................................................................. 33
3.1 Need of the Study ............................................................................... 34
3.2 Primary Survey................................................................................... 34

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3.3 Limitation of study............................................................................... 34
4 Cost Benefit Analysis of Diesel vs. Solar Water Pump ................................ 35
4.1 Costing Assumptions: ......................................................................... 36
4.2 Scenario 0 ......................................................................................... 37
4.3 Scenario 1 ......................................................................................... 38
4.4 Scenario 2 ......................................................................................... 39
4.5 Scenario 3 ......................................................................................... 40
5 Conclusion............................................................................................... 42
6 Bibliography............................................................................................. 43
7 Appendix ................................................................................................. 46
7.1 List of Solar PV Water Pumping Systems Tested and Qualified at Solar Energy Center during the year 2012-13 ......................................................... 47
7.2 List of Questions and Responses during SWP User Interview................ 51
7.3 List of Images of Site location where Interview conducted of SWP Users during Thesis Research ............................................................................... 56
7.3.1 1st Interview site location ............................................................... 56
7.3.2 2nd Interview site location .............................................................. 57
7.3.3 3rd Interview site location............................................................... 58
7.3.4 4th Interview site location ............................................................... 59
7.3.5 5th Interview site location ............................................................... 60

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LIST OF FIGURES
Figure 1 Solar, Diesel & Conventional Power Comparison ................................. 17
Figure 2 Conventional vs. Solar Power generation process ............................... 24
Figure 3 Technical Specifications of Solar Submersible DC Pump ..................... 28
Figure 4 Impacts of the “Jyotigram” scheme on different stakeholder groups ...... 29
Figure 5 Breakeven Point in Scenario 0............................................................ 37
Figure 10 Site location of Solar Water Pump User (1) near Hirapur Chokdi ......... 56
Figure 13 Site location of Solar Water Pump User (4) near Palanpur .................. 59
Figure 14 Site location of Solar Water Pump User (5) near Ghamij Village.......... 60

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LIST OF TABLES
Table 1 Pump Market in India Highlights........................................................... 11
Table 2 Challenges and Potential Solutions of Solar water pump ....................... 32
Table 3 5hp Diesel Pump Costing Assumptions ................................................ 36
Table 4 5hp SWP Costing With and Without 30% Subsidy................................. 36
Table 5 5hp Diesel Pump Costing (Scenario 0) ................................................. 37
Table 9 Comparison of break-even point in each scenario of SWP Usage .......... 41

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1 Introduction

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1.1 Indian Pump Industry Overview A pump is a device that moves fluids (liquids or gases), or sometimes slurries, by mechanical action. Pump is not a new concept in the Indian industry. In fact, the ‘Pichkari’ which Lord Krishna and his playmates used for splashing coloured water on Gopies, can be termed as the oldest reference to a pump concept, especially of the reciprocating plunger type. Thus, pumps must be an Indian invention, but commercial production of pumps in India, as contemporarily understood, is quoted to be way back in the first decade of twentieth century (Amin).
The Indian Pump industry has more than 800 manufacturers with worker strength of over 40,000 producing about 5 million pumps annually. Indian market for pump is estimated to be Rs.5000 Crores growing at an annual rate of 8% significantly higher than the global rate of 4% in FY 12. The Pumps industry in India is more than seven decades old. Though it has a turnover of Rs 5000 crore the size is not even 10 per cent of the size of USA market. The industry meets 95 per cent of the domestic demand.
Year FY 2012 FY 2013 Estimated Market (in Rs) 5000 Cr 8375 Cr Annual Growth rate 8% 12% No. of Pump Manufacturers 800+ 800+ % of Demand meet by Domestic Manufacturers 95% 95%
Table 1 Pump Market in India Highlights
Source: (Singhi_Advisors, 2011), (TATA , 2013)

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1.2 Pump Market in India Exports have been a regular feature of Indian pump industry for years. Indian pumps have reached more than sixty countries around the world including developed countries. India exported Pump sets worth 400 Crs in FY 11. Indian pump industry is characterized by the coexistence of large number of Small & Medium units, some large manufacturers and plenty of foreign manufacturers.
Coimbatore is the leading hub for pump manufacturing followed by Ahmedabad and Rajkot. India is the outsourcing hub of the manufacturers abroad who have found India to be not only a cheap source of skilled labor but also the market to be an expansive one. Contribution of Agricultural and domestic industry to total pump sales is higher in India compared to global standards. (Singhi_Advisors, 2011)
The following are major player in Indian pump Industry like, KSB, Kirloskar, Texmo, Crompton, CRI, Jyoti, Lubi, Duke Etc.
1.3 Agriculture in India Agriculture is a key sector in India that employs two-thirds of the country’s work force and continues to be a significant contributor to the GDP, 20% in 2005 (MOSPI, 2007b).
Water is becoming increasingly scarce in many parts of the world and thereby limiting agricultural development. The capacity of large countries like India to efficiently develop and manage water resources is likely to be a key determinant for global food security in the 21st century. (K Palanisami, 2011)

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Figure 1 Solar Water Pump (SWP) Block Diagram
Source: Self Compiled

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Since agriculture is the major water-consuming sector in India, demand management in agriculture in water-scarce and water-stressed regions would be central to reduce the aggregate demand for water to match the available future supplies. (K Palanisami, 2011)
It is estimated that 80 per cent of the freshwater in India is used for agriculture and a major portion (70%) of this is based on groundwater irrigation. Nearly 88 per cent of the total minor irrigation schemes in India are pump-based (MoWR, 2013). Though pump sets are important for livelihoods, they also contribute to the GHG emissions since a significant percentage of them rely on diesel.
1.4 Solar Water Pump Solar power operated water pumping system is used pump the water in remote place where the electric power is not available, it is a renewable energy technic where no cost for the electricity, A solar cell, a form of photovoltaic cell, is a device that uses the photoelectric effect to generate electricity from light, thus generating solar power (energy). Most often, many cells are linked together to form a solar panel with increased voltage and/or current. Solar cells produce direct current (DC), which can be used directly, converted in Alternate Current (AC), or stored in a battery.
The first phase of market development for solar PV water pumping in India goes back to 1993-94.The programme of the Ministry of New and Renewable Energy (MNRE), then known as Ministry of Non-Conventional Energy Sources, aimed for deployment of 50,000 solar PV water pumping systems for irrigation and drinking water across the country. MNRE provided the financial assistance required for subsidizing the capital and interest cost of the solar pumps. (GIZ, 2013)

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Figure 2 Solar Submersible Pump Diagram
Source: (taiyosolar.in)
Some years ago there were PVP models on the market that operated with batteries and a conventional inverter. However it was soon realised that the cost savings on the pump did not make up for the overall substandard efficiency and the higher maintenance cost due to battery replacements. Instead it became clear that it is more economical to rather store water in a reservoir than electricity in a battery bank. (EmCON, 2006)

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In several villages, the bore wells are now utilized as a dual source and the operational hours have been reduced. Based on a random survey, it has been observed that a significant saving has been achieved in electricity consumption that is now available for alternative uses, proving to be an eco-friendly achievement. Solar pumps have also been commissioned in 260 villages in the State and about 200 more solar pumping systems will be installed in the near future. In various parts of the State, including coastal and tribal areas, roof top rainwater harvesting structures have also been taken up in public buildings, schools and individual household level, which is also resulting in substantial electricity savings. Comprehensive energy audits for various group water supply schemes have also resulted in energy savings. (Gupta, 2011)
1.5 Why Solar In India 80% of the electricity is produced by coal which is a non- renewable source. Electricity whatever produced is very less than the need for electricity. By this many of the companies, industries, organizations, common people are facing severe power cuts. Because of this insufficient power supply for the agriculture sector, output of the crop is reducing every year. This scarcity of the power is creating major problems in small scale industries which logistics are totally depended on power.
Solar power is one of the best nonpolluting energy sources. India being at best geographical location receives nearly 300 to 320 days good sunny days. Among the solar power sources, solar Photovoltaic (PV) is one the matured power systems. If the industry develops and spread the Solar PV power packs to be installed at different places especially on buildings (commercial, public and institutional), industries, and also on various barren lands like hilly slopes, and desert areas. (Somasekhar. G, 2014)

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Figure 1 Solar, Diesel & Conventional Power Comparison Source: Headway Solar (P) Ltd.
1.6 Why SWP?
To grow the product where the grid energy doesn't reach in the hands the PV system plays important role in developing country like India. Another important reason of using PV based pumping systems is: conventional electricity not supplied in sufficient time (6-8 hour supplied to farmers in Rajasthan India), the cost of conventional energy, government subsidy in solar pumping systems and it is difficult to extend the electric grid to every location where it is needed for every farmer. (Shiv Lal, 2013)
0
2
4
6
8
10
12
14
16
2011
2013
2015
2017
2019
2021
Cost (Rs) (Per KWh)
Solar PV
Conventional Power
Diesel Gen. Set

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Erratic power supply and frequent grid failures are typical in most part of rural India. Farmers have a diesel pump or diesel run generator as an alternative to minimize the risk of crop failure due to discontinued water supply. As an alternative to expensive rural electricity grids and inefficient conversion of fossil fuels, renewable energies can contribute to solving this problem. (Shamaila Zia, 2012)
According to TATA’s Strategic Report on “Indian Pumps and Industrial Valves Market”, Likely scenario of Pumps market over next five years:
1. Minimal technological advancements; low R&D investment
2. Reduction in profit margins due to increasing raw material prices and operation in a price- sensitive market
3. Competition from low-cost Chinese Imports
4. Manufacturers will be expected to provide integrated solution (motors, seals, valves, drivers, after-sales service and technical support)
5. Some degree of consolidation of the market
Source: (TATA , 2013)

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1.7 Market Potential
Market Potential is the estimated maximum total Sales/Revenue of all suppliers of product in market during a certain period. 1 • Estimating Market Potential (MP) = N × P × Q • Estimating Market Potential (MP) of firm A = N × P × Q × MS 2 Where, MP = market potential N = total number of potential consumers P = average selling price Q = average annual consumption MS = market share (%) of consumers buying from firm A
1.8 Cost–benefit analysis (CBA) CBA is a systematic process for calculating and comparing benefits and costs of a project, decision or government policy. It involves comparing the total expected cost of each option against the total expected benefits, to see whether the benefits compensate the costs, and by how much. CBA has two purposes: 1) To determine if it is a sound investment/decision 2) To provide a basis for comparing projects Cost-Benefit Analysis (CBA) estimates and totals up the equivalent money value of the benefits and costs to the community of projects to establish whether they are worthwhile.3
1 . http://www.businessdictionary.com/definition/market-potential.html
2 . http://plantsforhumanhealth.ncsu.edu/extension/marketready/pdfs-ppt/business_development_files/PDF/estimating_market_potential.pdf
3 http://www.sjsu.edu/faculty/watkins/cba.htm

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1.9 Research Objective
1 The objective of this study is to analyze market potential of solar water pumps.
2 To analyze what is the need of Solar Water Pump.
3 To conduct a comparative cost benefit analysis among Diesel vs. Solar Water Pump.

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2 Literature review

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2.1 Electricity Consumption in Agriculture sector
Gujarat energy minister Saurabh Patel says the government has promised 10 hours of electricity to farmers for agricultural purposes and is delivering on it. However, Praful Senjaliya, a farmer leader in Saurashtra associated with the Bharatiya Kisan Sangh, disagrees. "Farmers have never got 10 hours electricity. As it is, we don't need much power because of drought-like situation. But the main problem is that electricity that is supplied for around five to eight hours is only at night and odd times. We have requested the government often to provide electricity in the day," he says (The Times of India, 2013).
Despite massive public investments in canal irrigation, Gujarat agriculture has come to depend heavily on irrigation with wells and tube wells. During the 1950s and 1960s, farmers used mostly diesel engines to pump groundwater. However, as rural electrification progressed, they began switching to submersible electric pumps, especially as diesel pumps are unable to chase declining water levels. Major expansion in the use of electric pumps occurred during the late 1980s as the Gujarat Electricity Board (GEB) changed to flat tariffs linked to the horse power of pumps. Until 1988, farmers were charged based on the metered use of electricity. However, as electric tube wells increased to hundreds of thousands, rampant corruption began to plague meter reading and billing. Farmers also complained about the tyranny and arbitrariness of the GEB’s meter readers. (Tushaar Shah, pp. 1-18)

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2.2 Water Resources in Gujarat
Gujarat has just 2.28% of India’s water resources and 6.39% of country’s geographical area. This is again constrained by imbalances in intra-state distribution. The State has an average annual rainfall of 80 cm with a high coefficient of variance over time and space and as a result droughts have been frequent. Out of 185 rivers, the State has only eight perennial rivers and all of them are located in southern part. Around 80% of the State’s surface water resources are concentrated in central and southern Gujarat, whereas the remaining three- quarters of the State have only 20%. (Gupta, 2011)
Since 2000, however, all available evidence suggests that the region’s ground water economy has begun shrinking in response to a growing energy squeeze. This energy squeeze is a combined outcome of three factors:
a) Progressive reduction in the quantity and quality of power supplied by power utilities to agriculture as a desperate means to contain farm power subsidies;
b) Growing difficulty and rising capital cost of acquiring new electricity connections for tube wells; and
c) An eight-fold increase in the nominal price of diesel during 1990-2007 (a period during which the nominal rice price rose by less than 50 %).
(Shah T. , 2008)
2.3 Solar Power as substitute of Diesel
A complex set of factors such as global warming, increasing competitive land use, and the growing mismatch between energy demand and supply is creating new challenges for the vast agrarian population in India. Diesel for running irrigation pumps is often beyond the means of economically marginalized farmers.

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Insufficient Irrigation can lead to crop damage, reducing yields and diminishing income. Environment-friendly, low-maintenance photovoltaic pumping systems offer new possibilities for pumping irrigation water. (GIZ, 2013)
Figure 2 Conventional vs. Solar Power generation process
(Image Credit: Sunible.com)

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Solar energy technologies have long been used in the areas of solar heating, solar photovoltaic, solar thermal electricity, and solar architecture. Energy shortages and increasing energy prices are two of the most urgent problems we face today. One desirable solution to the energy shortage problem is renewable energy, and solar energy is one of the cleanest and most efficient energy sources. Solar panels are among the most common methods of harvesting solar energy from solar radiation, which accounts for a large portion of available renewable energy. (Hu, 2012)
According to Mr. Santosh Kamath, Executive Director of KPMG, “Decentralized systems benefit from lower network losses as power does not have to be transported over long distances. These include applications such as solar rooftop systems, solar-powered agriculture pump sets, solar lighting systems and solar- powered telecom towers” (KPMG, 2011).
Several studies have indicated that the capital cost of solar is significantly more expensive than a diesel powered system but this is not the case. Solar pumps tended to replace larger capacity submersible pump and generator of comparable or greater cost. This is a result of a common tendency to oversize generators and pumps, a “bigger is better” mentality which persists not just within communities but also within District Water Offices and agencies who supply the equipment. There are also other capital investment and running costs for generators that are not required for solar. (Brian McSorley, 2011)

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2.4 The off-grid system
An off-grid solar PV power system is the standalone system provides uninterrupted power to the customer when sun is available. Off-grid system requires the battery storage and Inverter to get the AC power. The solar PV power inverter and batteries shall have limited life and supposed to be replaced at fixed intervals say after 10 years.
Advantages:
1. One time truthful Investment
2. Solar power Grid system comes without noise and pollution
3. After payback period owner can enjoy absolutely free of cost
4. For this grid system diesel is not required
(Somasekhar. G, 2014)
2.5 Solar Water Pump
Irrigation water pumping Solar Photovoltaic (SPV) theoretically has an advantage in meeting the needs of remote communities because of the high distribution costs of grid-power to this market and the competitive position with respect to diesel has improved with the recent rising oil prices. A surface pump powered with a 1.8 kWp PV array can deliver about 140,000 liters of water on a clear sunny day from a total head of 10 meters. This quantity of water drawn has been found to meet the irrigation requirement of 5-8 acres of land by using improved techniques for water distribution. (Amit Jain, 2012)
In rural and/or undeveloped areas where there is no power grid and more water is needed than what hand or foot pumps can deliver, the choices for powering pumps are usually solar or a fuel driven engine, usually diesel. There are very distinct differences between the two power sources in terms of cost and reliability.

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Diesel pumps are typically characterized by a lower first cost but a very high operation and maintenance cost. Solar is the opposite, with a higher first cost but very low ongoing operation and maintenance costs. In terms of reliability, it is much easier (and cheaper) to keep a solar-powered system going than it is a diesel engine. This is evident in field where diesel engines lie rusting and unused by the thousands and solar pumps sometimes run for years without anyone touching them. (SELF, 2008)
The solar pump has a unique cost structure with very high capital investment and near-zero marginal cost of pumping. This makes it very similar to electric pump owners who face high flat tariff but unlimited use of power (when available) at zero marginal cost. This cost structure will drive away small farmers who want to irrigate only their own little field; but it is ideal for potential ISPs. A solar-pump driven groundwater economy will also promote competitive groundwater markets with highly beneficial outcomes for water buyers who will gain even more with buried pipeline distribution networks such as those obtaining in central Gujarat (Shah, 1993).
Solar pumps offer a clean and simple alternative to fuel-burning engines and generators for domestic water, livestock and irrigation. They are most effective during dry and sunny seasons. They require no fuel deliveries, and very little maintenance. Solar pumps are powered by photovoltaic (solar electric) panels and the flow rate is determined by the intensity of the sunlight. Solar panels have no moving parts, and most have a warranty of at least 20 years. Most solar pumps operate without the use of storage batteries. Solar pumps must be optimally selected for the task at hand, in order to minimize the power required, and thus the cost of the system. (lorentz, 2008)

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The following figure indicates, Indicative Technical Specifications of Solar Deep well (submersible) Pumping Systems:
(With D.C. Motor Pump Set with Brushes or Brush less D.C. (B.L.D.C.))
Figure 3 Technical Specifications of Solar Submersible DC Pump
Source: (MNRE, 2013, p. 10)
2.6 Government Subsidy for Solar Water Pump
With the launch of the Jawaharlal Nehru National Solar Mission (JNNSM) in 2010, the solar water pumping programme of the MNRE was integrated with the off-grid and decentralized component of the JNNSM. There under, solar PV water Pumping Systems are currently eligible for a financial support of 30% subsidy,

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subject to a benchmark price of Rs. 190 per peak watt (Wp) from MNRE. Several states such as Rajasthan, Gujarat, Chhattisgarh, Uttar Pradesh, Maharashtra, Tamil Nadu and Bihar have taken up initiatives to implement solar PV water pumping programs using the financial assistance of JNNSM and funds available from the respective state governments (GIZ, 2013).
A SPV Pumping System installation program has been taken up by the Horticulture Department of the Government of Rajasthan (GOR). Applicants may avail of an 86% subsidy from the Jawaharlal Nehru National Solar Mission (JNNSM) and the Rashtriya Krishi Vikas Yojana (RKVY). MNRE is providing 30% subsidy under the JNNSM, while the Government of Rajasthan through the RKVY makes the remaining 56% available. This is a special scheme by GOR. For other states only MNRE is providing 30% subsidy under the JNNSM. Only 7334 solar PV water pumps having been installed across the country, as of March 2010 (Amit Jain, 2012).
The following figure is based on assessment of the impacts of JGS on different stakeholder groups in Gujarat.
Figure 4 Impacts of the “Jyotigram” scheme on different stakeholder groups

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Source: (Tushaar Shah, pp. 327-344)
Solar-powered agriculture pump sets:
 Currently, the agriculture category which uses power for irrigation pumps contributes around 20 percent of the total power demand of India. The grid power tariff to agriculture segment is heavily subsidized. The power supply is staggered and the network performance inefficient in most cases.
 Moreover, the subsidy burden is increasing due to the increase in conventional power costs thus negatively impacting the financial health of the State and power utilities.
 Furthermore, there are a large number of agriculture pump sets that currently use diesel power where there is no grid connection available.
 As cost curves come down, solar power is well suited as an alternative solution to meet the power requirements of the agriculture segment. Besides being a clean and convenient source of power, solar power can reduce the subsidy burden on the Government.
 To start with diesel, pump sets could be replaced by solar-powered pump sets due to favorable cost economics.
Source: (KPMG, 2011)

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2.7 Market Potential of SWP According to Bloomberg reports, The Indian government is aiming to swap out 26 million fossil-fuel-powered groundwater pumps for solar-powered ones. The pumps are used by farmers throughout the country to pull in water for irrigation, and currently rely on diesel generators or India’s fossil-fuel-reliant electrical grid for power. Pashupathy Gopalan, the regional head of SunEdison, Said that 8 million diesel pumps already in use could be replaced right now. And India’s Ministry of New and Renewable Energy estimates another 700,000 diesel pumps that could be replaced are bought in India every year. Tarun Kapoor, the joint secretary, MNRE said that “Irrigation pumps may be the single largest application for solar in the country” (SPROSS, 2014).
In India nearly 81 million (32.8 per cent) households do not have access to electricity (Census of India, 2011). Around 74 million rural households lack access to modern lighting services (TERI, 2013, p. 380) and a larger proportion of the population (around 840 million) continue to be dependent on traditional biomass energy sources (IEA, Octomber, 2011).
There are about 21 million irrigation pump sets in India, of which about 9 million are run on diesel and the rest are grid based (Amit Jain, 2012).

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Barriers Potential Solutions Market Related Barriers
High Upfront Cost
Smart Subsidies/ Innovative Finance
Lack of Finance Mechanisms
Innovative Customer Behaviour/ Business Finance Mechanisms
Low awareness among Consumers & other relative shareholders
Awareness Campaigns
Lack of Maintenance and Support
Localized Service Infrastructure
Danger of Theft
Portable/ Community Owned Systems, Insurance Regularity Issues
Restricted Financial Engineering
Innovative Policies and Finance Engineering
Maze of Political Department
“Single-Window” Approach
Lack of Market Oriented Policies
Policies Providing a level Playing Field with diesel pumps
Concealed Tendency and Small Landholdings
Tendency Reform, Leasing Mechanisms & Group Investments Technology Related Barriers
Lack of Standardization and Quality Assurance
Standardize product that cater local needs
Lack of Local Manufactures
Promotion of Local Manufacturing
Table 2 Challenges and Potential Solutions of Solar water pump
Source: (GIZ, 2013)

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3 Research Methodology

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3.1 Need of the Study
The water pump industry in India has become too much competitive to sustain and in this scenario one needs to be innovative. And other side there is demand for solar water pump because there are many farmers who do not have access to electricity for farming in India. The point is “Will this new innovation called solar water pump able to fulfill the demand?” During my secondary research I found many reports which show comparison of Diesel VS Solar water pump. When we talk of viability of solar water pump for farmers in Indian context, it makes difference because of Indian geographical conditions, farmers’ mindset, Indian government’s approach towards solar water pump etc. So this issue needs to be discussed with solar water pump users in India and perform cost benefit analysis of diesel vs. solar water pump during my research thesis.
3.2 Primary Survey
To identify what is market potential of solar water pump, a structured interview of farmer was taken. The interview includes questions like - what is capacity of solar water pump, what is process of installing SWP, effectiveness of Government subsidy etc.
This interview details are shown in Appendix 7.2 and 7.3 .
3.3 Limitation of study
Due to time constraint, five structured interviews able to taken of solar water pump users. And this all SWP user belong to north central Gujarat.
 Kheda District - 3 Interviews
 Gandhinagar District - 1 Interview
 Banaskantha District - 1 Interview

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4 Cost Benefit Analysis of Diesel vs. Solar Water Pump

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4.1 Costing Assumptions:
5hp Diesel Pump Costing Assumptions
Particular
Scenario 0
Scenario 1
Scenario 2
Scenario 3
No. of Hour Pump Usage /day
1
2
4
8
No. of Sunny Days/ Year
250
250
250
250
No. of Hour Pump Usage/ Year
250
500
1000
2000
Price of Diesel/ litre (Rs) 4
63
63
63
63
Diesel Usage/ Hour (5HP) 5
1.7
1.7
1.7
1.7
Hike in Diesel Price (%)
10
10
10
10
Total Running Cost (Rs)
26775
53550
107100
214200
Table 3 5hp Diesel Pump Costing Assumptions
Year
Capital
Cost
Without Subsidy (A)
Capital Cost With 30% Subsidy (D)
Operating Cost (B)
Maintenance Cost (C)
SWP Cumulative Cost W/O Subsidy (A+B+C)
SWP Cumulative Cost With 30% Subsidy (D+B+C)
1
489400
342580
0
2500
491900
345080
2
0
0
0
2500
494400
347580
3
0
0
0
2500
496900
350080
4
0
0
0
2500
499400
352580
5
0
0
0
2500
501900
355080
6
0
0
0
2500
504400
357580
7
0
0
0
2500
506900
360080
8
0
0
0
2500
509400
362580
9
0
0
0
2500
511900
365080
10
0
0
0
2500
514400
367580
4 http://www.mypetrolprice.com/10/Diesel-price-in-Ahmedabad
5 (Seleshi Bekele Awulachew (IWMI), 2009)
Table 4 5hp SWP Costing With and Without 30% Subsidy

37
4.2 Scenario 0
5hp Diesel Pump Costing (Scenario 0)
Year
Capital Cost (A)
Operating Cost (B)
Mainte- nance Cost (C)
Total Cost (A+B+C)
Diesel Pump Cumulative Cost SWP Cost Without Subsidy
SWP Cost With 30% Subsidy
1
30000
26775
5000
61775
61775 491900
345080
2
0
29453
5000
34453
96228 494400
347580
3
0
32398
5000
37398
133625 496900
350080
4
0
35638
5000
40638
174263 499400
352580
5
0
39201
5000
44201
218464 501900
355080
6
0
43121
5000
48121
266585 504400
357580
7
0
47434
5000
52434
319019 506900
360080
8
0
52177
5000
57177
376196 509400
362580
9
0
57395
5000
62395
438590 511900
365080
10
0
63134
5000
68134
506725 514400
367580
Total
506725
Table 5 5hp Diesel Pump Costing (Scenario 0)
Figure 5 Breakeven Point in Scenario 0
0
100000
200000
300000
400000
500000
600000
1
2
3
4
5
6
7
8
9
10
Cumulative Cost (Rs)
Break Even Duration (Year)
Diesel Pump
SWP without Subsidy
SWP With 30% Subsidy

38
4.3 Scenario 1
Year
Capital Cost (A)
Operating Cost (B)
Total Cost (A+B+C)
1
30000
53550
5000
88550
88550 491900
345080
2
0
58905
5000
63905
152455 494400
347580
3
0
64795.5
5000
69796
222251 496900
350080
4
0
71275.05
5000
76275
298526 499400
352580
5
0
78402.56
5000
83403
381928 501900
355080
6
0
86242.81
5000
91243
473171 504400
357580
7
0
94867.09
5000
99867
573038 506900
360080
8
0
104353.8
5000
109354
682392 509400
362580
9
0
114789.2
5000
119789
802181 511900
365080
10
0
126268.1
5000
131268
933449 514400
367580
Total
933449
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
1
2
3
4
5
6
7
8
9
10
Diesel Pump
SWP without Subsidy

39
4.4 Scenario 2
Year
Capital Cost (A)
Operating Cost (B)
Total Cost (A+B+C)
1
30000
107100
5000
142100
142100 491900
345080
2
0
117810
5000
122810
264910 494400
347580
3
0
129591
5000
134591
399501 496900
350080
4
0
142550.1
5000
147550
547051 499400
352580
5
0
156805.1
5000
161805
708856 501900
355080
6
0
172485.6
5000
177486
886342 504400
357580
7
0
189734.2
5000
194734
1081076 506900
360080
8
0
208707.6
5000
213708
1294784 509400
362580
9
0
229578.4
5000
234578
1529362 511900
365080
10
0
252536.2
5000
257536
1786898 514400
367580
Total
1786898
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
1
2
3
4
5
6
7
8
9
10
Axis Title
Diesel Pump
SWP without Subsidy

40
4.5 Scenario 3
Year
Capital Cost (A)
Operating Cost (B)
Total Cost (A+B+C)
1
30000
214200
5000
249200
249200 491900
345080
2
0
235620
5000
240620
489820 494400
347580
3
0
259182
5000
264182
754002 496900
350080
4
0
285100.2
5000
290100
1044102 499400
352580
5
0
313610.2
5000
318610
1362712 501900
355080
6
0
344971.2
5000
349971
1712684 504400
357580
7
0
379468.4
5000
384468
2097152 506900
360080
8
0
417415.2
5000
422415
2519567 509400
362580
9
0
459156.7
5000
464157
2983724 511900
365080
10
0
505072.4
5000
510072
3493796 514400
367580
Total
3493796
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
1
2
3
4
5
6
7
8
9
10
Diesel Pump
SWP without Subsidy

41
Particular Scenario 0 Scenario 1 Scenario 2 Scenario 3 No. of Hour Pump Operating/ day
1
2
4
8 No. of Sunny Days/ Year
250
250
250
250 No. of Hour Pump Operating/ Year
250 Hour
500 Hour
1000 Hour
2000 Hour Break Even Point Without Subsidy
10 Year
6 Year
3 Year
2 Year Break Even Point With 30% Subsidy
7 Year
4 Year
2 Year
1 Year
Table 9 Comparison of break-even point in each scenario of SWP Usage

42
5 Conclusion
From the cost benefit analysis of diesel vs. solar water pump, Conclusion is that if your daily water usage is ranging from 1-2-4-8 hours than respective break even time period is approximately 10-6-4-2 year for Without subsidy and with 30% Central Government Subsidy it is 7.5 - 4.5 - 2.5 - 1.5 year as shown in Table 9. So, Daily around 8 hour of 5hp solar water pump usage for 250 days per year led to recover cost in 2 year with comparison of 5hp diesel pump. Higher usage of water will reduce break even time period. Now, if your usage is less than 8 hour per day than you can recover SWP cost by other ways. Like selling water to others and use solar panel for getting electricity for home lighting and other home appliances.
During primary research in discussion with solar water pump user, one reason why farmer buy solar water pump. And this reason will not able to found in any kind of secondary research. Normally, Farmer buy solar water pump mainly because of two things. One is unavailability of electricity at farm and increasing price of diesel. The reason is that farmer also buy solar water pump because of land ownership issue. To get electricity connection, farmer need land ownership document and signature of related owners. Normally one can become land owner from his father’s land and father’s land is shared among his children. Now to get signatures of all related owner is difficult. So, in this situation to get electricity connection is difficult. So, farmers prefer to buy solar water pump.

43
6 Bibliography
Amin, R. (n.d.). An Overview of Indian Pump Industry. pp. 1-2.
Amit Jain, S. J. (2012). Is Solar a solution to Blackouts in India: A case study with agriculture diesel pumps sets?
Brian McSorley, M. M. (2011). Solar Pumps: A solution to improving water security in drought prone areas. Oxham.
Census of India. (2011). Source of lighting: 2001-2011, Houselisting and Housing Census Data Highlights - 2011. Registrar General & Census Commissioner, India (ORGI), Government of India.
EmCON. (2006). Feasibility Assessment for the Replacement of Diesel Water Pumps with Solar Water Pumps. NAMIBIAN RENEWABLE ENERGY PROGRAMME (NAMREP).
GIZ. (2013). Solar Water Pumping for Irrigation: Potential and Barriers in Bihar, India. Indo-German Energy Programme (IGEN), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.
Gupta, R. K. (2011). The role of water technology in development: a case study of Gujarat State. (pp. 1-14). Zaragoza, Spain: UN Water.
Hu, B. (2012). Solar Panel Anomaly Detection and Classification. Waterloo: University of Waterloo.
IEA. (Octomber, 2011). energy for all: financing access for the poor. energy for all conference (pp. 19-22). Oslo, Norway: International Energy Agency.
K Palanisami, K. M. (2011). Spread and Economics of Micro-irrigation in India: Evidence from Nine States. REVIEW OF AGRICULTURE, 1-6.

44
KPMG. (2011). “The Rising Sun - A Point of View on the Solar Energy Sector in India”. Mumbai: KPMG.
lorentz. (2008). Solar Water Pumps in Namibia: A Comparison Between Solar And Diesel.
MNRE. (2013). Jawaharlal Nehru National Solar Mission - SOLAR PHOTOVOLTAIC WATER PUMPING SYSTEMS.
Seleshi Bekele Awulachew (IWMI), P. L. (2009). Pumps for small-scale irrigation. IWMI.
SELF. (2008). A COST AND RELIABILITY COMPARISON BETWEEN SOLAR AND DIESEL POWERED PUMPS. Solar Electric Light Fund (SELF).
Shah. (1993). Groundwater markets and irrigation development: Political economy and practical policy. Bombay: Oxford University .
Shah, T. (2008). Crop per Drop of Diesel! Energy-Squeeze on India’s Smallholder Irrigation. Anand, India: International Water Management Institute, .
Shamaila Zia, T. A. (2012). easibility Assessment of photovoltaic pumping for irrigation in West Bengal, India. 1. Institute of Agricultural Engineering (440e) Universität Hohenheim, Stuttgart, Germany 2. Indian Institute of Technology, Kharagpur, India.
Shiv Lal, P. K. (2013). Techno-economic analysis of solar photovoltaic based submersible water pumping system for rural areas of an Indian state Rajasthan . Science Journal of Energy Engineering, 1-4.
Singhi_Advisors. (2011). Pump & Valve Industry – Overview & Opportunities.
Somasekhar. G, B. G. (2014). Marketing Methodology of Solar PV Power Packs. IOSR Journal of Economics and Finance (IOSR-JEF), 38-43.

45
SPROSS, J. (2014, February 7). India Wants To Switch 26 Million Water Pumps To Solar Power Instead Of Diesel. Retrieved April 15, 2014, from http://thinkprogress.org: http://thinkprogress.org/climate/2014/02/07/3265631/india-solar-pump- swap/
taiyosolar.in. (n.d.). solarpump. Retrieved may 20, 2014, from taiyosolar: http://taiyosolar.in/solarpump.html
TATA . (2013). Indian Pumps and Industrial Valves Market. TATA Strategic management group.
TERI. (2013). TERI Energy Data Directory & Yearbook (TEDDY) 2012/13. TERI Publication.
The Times of India. (2013, March 4). Power-full’ Gujarat gives 24-hour electricity. Retrieved May 10, 2014, from indiatimes.com: http://timesofindia.indiatimes.com/india/Power-full-Gujarat-gives-24-hour- electricity/articleshow/18786012.cms
Tushaar Shah, S. V. (n.d.). Real-time Co-management of Electricity and Groundwater: An Assessment of Gujarat’s Pioneering ‘Jyotirgram’ Scheme. International Water Management Institute, Anand, India.

46
7 Appendix

47
7.1 List of Solar PV Water Pumping Systems Tested and Qualified at Solar Energy Center during the year 2012-13 No File No. & Issue Date Pump submitted by Pump system PV array Type & Head 1 0837/11/CSC/ SEC/Pump 27.12.2011 M/s JJPV solar Pvt Ltd., Vill Veraval (Shapar), Dist. Rajkot- 360024, Gujarat (India) M/s Groundfos M/s JJPV solar Pvt. Ltd. Submersible 3HP DC pump, Head 30 meter 2 0861/11/CSC/ SEC/Pump 8.6.2012 M/s JJPV solar Pvt Ltd., Vill Veraval (Shapar), Dist. Rajkot- 360024, Gujarat (India) M/s Rotomag M/s JJPV solar Pvt. Ltd. Centrifugal 2 HP DC surface pump, Head 10 meter 3 43/2012/CSC/ SEC/Pump 8.6.2012 M/s Span pumps Pvt. Ltd., 104,Arihant, 1187/26, Shivaji nagar, Pune-411005, India M/s Groundfos M/s Surana Telecom & Power Ltd, Hyderabad Submersible 0.5 HP DC pump, Head 30 meter 4 44/2012/CSC/ SEC/Pump 8.6.2012 M/s VRG Energy India Pvt. Ltd., 128, Backbone shopping center, Rajkot- 360064, Gujarat, India M/s Groundfos Model: SQF 8A-5 M/s PV Power Technologies Pvt. Ltd., Mumbai Submersible DC pump, Head 30 meter 5 93/2012/CSC/ SEC/Pump 8.6.2012 M/s Moserbaer (I) Ltd., 66, Udyog Vihar, Greater Noida, G.B. Nagar (UP)-201306, India M/s Sun Pump, USA M/s Moserbaer (I) Ltd. Submersible DC Pump, Head 30 meter 2 HP 6 95/2012/CSC/ SEC/Pump 15.06.2012 M/s WAREE Energies (P) Ltd., 602, Western Edge-1, Borivali (E), Mumbai-4000066, India M/s Lorentz Pump Model: PS 1800 SJ8-7 M/s WAREE Energies (P) Ltd. Submersible 2HP DC Pump, Head 30 meter 7 115/2012- 13/CSC/SEC/ Pump 11.07.2012 M/s Central Electronics Limited, 4, Industrial area, Sahidabad, Ghajiabad (U.P)- 201010 M/s Lorentz Pump M/s Central Electronics Limited Submersible DC Pump, Head 30 meter 4.6 HP

48
8 113/2012- 13/CSC/SEC/ Pump 08.08.2012 M/s BSES Yamuna Power Limited, Shakti Kiran Building, Karkardooma, New Delhi M/s Lorentz Pump Model:PS1800 CSJ5-12 M/s WAREE Energies (P) Ltd. Submersible 2HP DC Pump, Head 30 meter 9 247/2012- 13/CSC/SEC/ Pump 8.11.2012 M/s Jain Irrigation Systems Ltd., Jain Plastic Park, P.O. Box 72, N.H. No. 6, Jalgaon- 425001 M/s Lorentz Pump M/s Jain Irrigation Systems Ltd. Deep well 3HP DC pump , Head 50 meter 10 244/2012- 13/CSC/SEC/ Pump 9/11/2012 M/s Shakti Pumps (India) Ltd., Plot No. 401- 402-413, Sector -3, Pithampur, Dhar-454775, Madhya Pradesh M/s Shakti Pumps (India) Ltd. M/s PV Power Technologies Pvt. Ltd. Submersible 5HP AC deep well mono- block pump, Head 50 meter 11 226/2012- 13/CSC/SEC/ Pump 9/11/2012 M/s HBL Power systems Ltd., Plot No. 263, Patparganj Industrial Area, Delhi- 110092 M/s Kirlosker Brothers Ltd M/s HBL Power systems Ltd. Submersible 3HP AC deep well mono- block pump, Head 50 meter 12 248/2012- 13/CSC/SEC/ Pump 27/11/2012 M/s Topsun Energy Ltd., B-101,GIDC, Electronic Zone, Sector-25, Gandhinagar- 382028, Gujarat, INDIA M/s Mono Pumps Ltd. M/s Topsun Energy Ltd. Centrifugal 3HP DC Submersible Deep Well pump, Head :50 meters 13 243/2012- 13/CSC/SEC/ Pump 29/11/2012 M/s Bright Solar Pvt. Ltd. Plot No. 90,Nathabhai Estate,Near Jashodanagar Cross, Ahmedabad-380026, Gujarat, India M/s Bright Solar Pvt. Ltd. M/s Green Brilliance Energy Pvt. Ltd. 3HP DC Submersible mono-block pump, Head 50 meter 14 249/2012- 13/CSC/SEC/ Pump M/s Duke Plasto Technique Pvt. Ltd. N.H. 14, Deesa Highway, Badarpura Dist: Banaskuntha, Palanpur-385511, North Gujarat, India M/s Duke Plasto Technique Pvt. Ltd. M/sPV Powertech Centrifugal 5HP AC Submersible Deep Well Pump, Head :50 meters,

49
15 253/2012- 13/CSC/SEC/ Pump 29/11/2012 M/s Punchline Energy Pvt. Ltd. 328 Phase 2, Udyog, Vihar Gurgaon, Haryana 122016,India M/s Shroffs Engineering Ltd M/s Kotak Urja Private Ltd Submersible Deep well pump, 3HP AC Pump, Head: 50 Meters 16 257/2012- 13/CSC/SEC /Pump 30/11/2012 M/s BSES Yamuna Power Limited Shakti Kiran Building, Karkardooma, New Delhi-110032 M/s Grundfos, Denmark M/s Kotak Urja, Bangalore Centrifugal Submersible 1HP DC pump, Head: 30 Meters 17 115/2012- 13/CSC/SEC/ Pump 24/12/2012 M/s Central Electronics Limited 4, Industrial Area, Sahibabad Ghaziabad (U.P) – 201010 M/s Rotomag M/s Central Electronics Limited Centrifugal 2HP DC Surface mono-block pump, 10 Meters 18 252/2012- 13/CSC/SEC/ Pump 26/12/2012 M/s JJPV Solar Pvt. Ltd. Survey No. 236, Plot No.2, Near Vikas Stove, NH-8 B, Village - Veraval-Shaper, Dist: Rajkot-360024 Gujarat, M/s Shakti Pumps (I) Ltd. M/s JJPV Solar Pvt. Ltd. Submersible 3HP AC Pump, 50 Meters 19 247/2012- 13/CSC/SEC/ Pump 04.02.2013 M/s Jain Irrigation Systems Ltd., Jain Plastic Park, P.O. Box: 72, N. H. No. 6, Jalgaon- 425001 M/s Lorentz Pump M/s Jain Irrigation Systems Ltd. Submersible 2HP DC pump, 50 Meters 20 316/2013/CSC/ SEC/Pump 21.02.2013 M/s Rajasthan Electronics & Instruments Limited, 2, Kanakpura Industrial Area, Jaipur-3 02012, Rajasthan M/s Rotomag M/s Rajasthan Electronics & Instruments Limited Shallow well 3HP DC Pump Head :20 Meters 21 254/2012- 13/CSC/SEC/ Pump M/s Alpex Exports Pvt. Ltd., 81/2, 1st floor, Sri Aurobindo Marg,, Near Hero Honda Showroom, M/s Bright Solar Pvt. Ltd M/s Alpex Exports Pvt. Ltd. Submersible 2HP DC Pump, 30 Meters

50
18.02.2013 Adhchini, New Delhi- 110017 22 309/2012- 13/CSC/SEC/ Pump 05.03.2012 M/s Jain Irrigation Systems Ltd., Jain Plastic Park, P.O. Box: 72, N. H. No. 6, Jalgaon- 425001 M/s Lorentz M/s Jain Irrigation Pvt. Ltd. Submersible 3HP DC pump, 20 Meters 23 315/2013/CSC/ SEC/Pump 20.03.2012 M/s BSES Yamuna Power Limited, Shakti Kiran Building, Karkardooma, New Delhi-110032 M/s Grundfos M/s Kotak Urja Pvt. Ltd. Submersible 1 HP DC Deep Well pump , 30 Meters 24 276/2013/CSC/ SEC/Pump 07/03/2013 M/s Waaree Energies Pvt. Ltd. 602, Western edge-1, Western Express Highway, Borivali (E), Mumbai-400066, India M/s Bright Solar Pvt. Ltd. M/s Waaree Energies Pvt. Ltd. Submersible 3HP DC, Deep Well pump , 50 Meters 25 324/2013/CSC/ SEC/Pump 21/03/2013 M/s Bright Solar Pvt. Ltd. Plot No. 90, Nathabhai Estate, Near Jashodanagar Cross, Ahmedabad-380026, Gujarat, India M/s PUMPMAN M/s Waaree Energies Pvt. Ltd. Submersible 5 HP DC Deep Well pump , 50 Meters

51
7.2 List of Questions and Responses during SWP User Interview

52

53

54

55

56
7.3 List of Images of Site location where Interview conducted of SWP Users during Thesis Research
7.3.1 1st Interview site location
Figure 9 Site location of Solar Water Pump User (1) near Hirapur Chokdi

57
7.3.2 2nd Interview site location

58
7.3.3 3rd Interview site location

59
7.3.4 4th Interview site location
Figure 12 Site location of Solar Water Pump User (4) near Palanpur

60
7.3.5 5th Interview site location
Figure 13 Site location of Solar Water Pump User (5) near Ghamij Village
___________

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