| Abstrakt: |
Solar-powered irrigation system (SPIS) is a sustainable technology that utilizes renewable energy to pump water for agricultural production. Despite its environmental benefits, its adaptation is challenged by its high investment cost, particularly for small-scale farmers in most developing countries. This study aims to evaluate the attractiveness of shifting to SPIS from diesel-powered irrigation using the case of small-scale farmers in the Philippines. Considering the cost savings from adopting SPIS, this study analyzes the economic viability and optimal timing of investment under diesel price uncertainty. Results found that SPIS is economically attractive with USD 556.26/ha annual cost savings, USD 229.68/ha net present value, 12.49% internal rate of return, and a 5.58-year payback period. Considering the uncertainty in diesel prices, it is more optimal to invest immediately as waiting incurs losses. Investment decisions for SPIS are further favored by decreasing technology costs for solar PV systems, multiple utilization, cost-sharing among farmers, and negative externality of diesel. Findings provide recommendations for the widespread adoption of SPIS for more environment-friendly and sustainable production in agricultural countries. [ABSTRACT FROM AUTHOR] |
